Santa Claus won’t come for another week but cattle feeders received an early lump of coal as feedlot margins fell to negative $32.76 per head the week ending December 13, according to the latest Sterling Profit Tracker. This is the second-straight week of huge losses for cattle feeders, with feedlot margins dropping nearly $78 since early in the month. What’s more, since this time last month, feedlot margins have taken a $263.99 per head swing from the $231.23 per head profit at this time last month.
Corn futures stabilized Wednesday morning. Despite current concerns about the global economic & political situation, corn futures are pretty stable. News that China is lifting its ban on Syngenta’s Viptera GMO corn is probably providing persistent support, since their ban greatly diminished U.S. corn & DDG exports early this year. The weekly EIA report looked supportive of ethanol industry demand. March corn futures inched 0.5 cent lower to $4.055/bushel late Wednesday morning, while July lost 0.5 to $4.205.
China news probably supported corn Tuesday morning. Corn futures decline in concert with financial markets Monday night as the diving Russian ruble and depressed financial markets reflected growing concern about a global recession. However, early morning confirmation that China is lifting its ban on Syngenta’s Viptera GMO corn sparked fresh optimism about U.S. export prospects, thereby limiting CBOT losses. March corn futures slid 2.0 cents to $4.065/bushel late Tuesday morning, while July dipped 1.75 to $4.2375.
By Matthew A. Diersen, South Dakota State University
Heading into the New Year is a good time to think about price and basis levels. The markets currently reflect steep inversions as cash prices for live and feeder cattle are higher than their respective futures prices.
Export news is probably supporting corn prices. Despite Tuesday’s bearish market environment, corn futures firmed in response to that China is lifting its ban on Syngenta’s Viptera GMO corn. The lifting of that trader barrier to U.S. grain, as well as a sizeable South Korean import tender seemingly offered fresh support last night. March corn futures rose 3.0 cents to $4.09/bushel early Wednesday morning, while July added 2.75 to $4.2375.
China news probably supported corn Tuesday. Corn futures declined in concert with financial markets Monday night as the diving Russian ruble and depressed financial markets reflected growing concern about a global recession.
The proposed Trans-Pacific Partnership (TPP), which is currently under negotiation, aims to create a comprehensive, high-quality trade liberalization agreement that unites many of the Pacific Rim countries.