Closing Comments – Holiday Trade Edition through Dec 31st
Economic news for existing homes sales was a startling -10.5% compared to the -.2% expected decline. On the positive side the median home price was seen at $220,300 which was up +6.3% vs. year ago month. Most energy markets are down today except for crude which was up slightly.
Corn values were again under pressure upfront at the Gulf and interior markets were steady to weak. Corn seemed to slide lower after taking out a support area that was able to hold up yesterday. Really a lack of fresh bullish news for grains and approaching holidays not providing incentive for markets to move outside of the their sideways action.
Overall soybeans have held up the best of the last few trading sessions. They have been trading around the 100 day moving average on the chart offering resistance for the moment. While the large up move from Thursday and Friday keep it above support and have soybeans in a tight range. In the overall complex, soybeans could use more help from meal and usually the driver to a long term bean rally. Both soyoil and soymeal have been higher lately, but soyoil has been the clear leader.
Chicago Wheat was down the hardest today but a longer term positive still may be that the KC/Chicago wheat spread still is working higher, which helps to at least try and keep the wheat complex stable to higher. KC and Minneapolis wheat still holding above support while Chicago wheat slipped below on a closing basis.
Cattle markets are continuing the rally again today with trades happening in Texas and Kansas at $122 and bids moving to $124 later in the day. Livestock forecasts for today’s afternoon USDA monthly cold storage report to show 535 mln lbs of frozen beef in storage as of November 30th, while frozen pork stocks are seen around 678 mln lbs and poultry stocks are forecast at 874 mln lbs. USDA Ag Secretary Vilsack today announced the appointment of 37 members to the cattlemen’s Beef Promotion and Research Board, and they will serve a 3 year term.
Closing Market Snapshot
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