CBOT futures closed slightly higher, recovering from yesterday’s losses resulting from the bearish USDA reports. There wasn’t any real news driving the market today. Price ranges were fairly narrow except for December OATS.

Cattle futures closed sharply higher with some contracts up the daily limit. It wasn’t surprising to see this short-covering (profit-taking) rally given the extended sharp selloff that’s been occurring. Futures and the beef market aren’t in sync as Choice dropped 1.76 to 214.81; Select down 2.75 at 204.19. Price volatility isn’t likely to subside.

Lean Hog futures also closed strongly higher on spillover support from cattle futures and the LH market’s “oversold” condition. The cash markets continue to weaken. FOB Plant Pork dropped .66 to 74.85 (was up .20 at midday).

Corn Dec +3 362; JLy +1 381; Dec16 +1 391 Bean Jan +5 861; Jly +4 870; Nov +8 874 Meal +2 294 Oil -9 2718 Wheat Dec +4 495; Jly unch 502 KC +3 464; MGE +4 502 Oats +8 235 Rice unch 1163

LC Dec +300 limit 13132; Feb +300 13332; Apr +297 13332 FC Nov +330 17485; Jan +450 limit 16607; Apr +450 16627 LH Dec +262 5617; Feb +192 5707; Apr +150 6285 Milk Nov unch 1545; Dec +6 1522

 

US$ -.2% Dow -56 17702 SP -7 2075 NAS -16 5067 Tran -30 8187 VIX +.77 16.06 +5%

WTI -114 4307 Brent -154 4590 Gas -3 133 NG -5 227 HO -3 145 Eth unch 149 Gold -3 1086 Slvr -6 1429

5-yr 1.714% 10yr 2.336% 30yr 3.109%