After early gains, grain prices turn lower

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Corn futures are 2-3 cents lower at midsession. Export basis levels firmed with the sharp decline in futures prices on Monday. While corn export demand has been soft, U.S. and South American price levels are narrowing making the U.S. more competitive. Thin supplies along U.S. export channels have helped underpin the cash market. However, weekly export inspections came in at only 9.5 million bushels, about 5 million below expectations. Meanwhile, planting delays persist in Argentina due to wet weather. December corn futures are trading 2 3/4 cents lower at $7.15 1/4.

Earlier gains have evaporated and the soybean market was back to trading lower by mid morning. The January futures was trading just under $14 per bushel, marking its lowest price since late June. Soybean prices have been on a steep descent ever since Friday morning when USDA increased its forecast for the soybean crop by 111 million bushels, the largest October to November revision on record. With January futures off 96 cents over two trading sessions, there was reason to suspect foreign buyers might step in with one or more large purchases. Bulls were disappointed when there was no announcement at 9 AM EST.

Wheat prices have extended opening losses in mid-session trade. CBOT December is down double digits again. Crop conditions in Argentina are improving while the harvest is advancing normally in southern Australia and South Africa. Concern over U.S. hard red wheat conditions may subside if this afternoon’s holiday-delayed weekly crop condition report shows any improvement for winter wheat; particularly in Plains states with the weekend rain. Winter crops are dormant or becoming dormant in Canada, the northern U.S. Plains much of Europe, the Commonwealth of Independent States and northern China, putting concerns there “on hold” for now. At mid-session, CBOT December is down10 ½ cents at $8.47 ¼; KCBT December down 5 ¼ cents at $8.85 ¼; MGE December down 3 ¾ at $9.29 ½.

Live cattle futures are trading mixed at midmorning. Cattle slaughter on Monday was estimated at 113,000 head, down 5,000 from last week and 10,000 from a year ago. Current expectations are for cash prices to trade steady to lower as packer need to source fewer cattle to meet next week’s holiday shortened slaughter schedule. Beef prices were higher on Monday with choice beef up $1.43 at $193.30. Select was $.15 higher at $173.71. Beef exports during September were down 17% from a year ago at 194.5 million pounds. December cattle are 10 cents higher at 125.45.

Lean hog futures are moving higher today. Cash trade is steady in the west and $.50 to $1 lower in the east. Packer buying interest is light ahead of next week’s shortened slaughter week. In futures trade, the Goldman roll will wrap up today as their funds roll long positions from the December contract to February and April. The upward momentum in futures continues. December rallied to a 4 month high while February and the deferred contracts posted new contract highs. Pork shipments in September were about steady with a year ago at 147 million pounds. December hogs are 90 cents higher at $81.22


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Elevator Legs

Adams Fertilizer Equipment offers an increasing line of fertilizer handling equipment to meet the needs of today’s industry. Whether it ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form