Ag commodities get lift from outside markets

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

The corn market jumped over 10 cents Monday in following the lead of global commodity markets. Traders were increasingly optimistic that there will be an agreement in Washington to avoid the so-called fiscal cliff at the beginning of 2013. Without an agreement, economists worry about a new recession in 2013. Middle East tensions boosted buying interest in crude oil with gains of over $2 per barrel. Following the EPA ruling on the ethanol mandate on Friday, this was more bullish news for demand. Trade sources cited technical buying interest associated with the December contract trading back to the 20-day moving average as another bullish factor. At the close, December was up 11 ½ at $7.38 ¾; March up 11 ½ at $7.42 ½.

Soybean markets rebounded on Monday, but gains came up short of recovering all of the losses on Friday. At the close, January was up 11 1/2 cents at $13.84 3/4. New-crop November gained 14 1/4 cents to close at $12.76 3/4. December soybean oil gained 84 points. December meal was unchanged, although other months gained $1 to $3 per ton. Commodity markets globally are higher on optimism that there will be an agreement in Washington to avoid the so-called fiscal cliff at the beginning of 2013. Middle East tensions boosted buying interest in crude oil, and that supported soyoil. Argentina sees risks for more planting delays. At the close, January beans were up 11 ½ at $13.94 ¾; March up 14 at $13.82.

Not even a very positive environment for commodity investment in the outside markets Monday could keep wheat from giving back most of its early gains to close only steady to slightly higher Monday. Weekly export shipments were within the range of pre-report expectations, but at the low end. A strong day for corn failed to have any coat-tail tug on wheat. Even a CFTC report Friday showing Trading Funds in a short-covering mode for a 3rd straight week failed to sustain early gains. At the close, CBOT December was 4 higher at $8.57 ¾; KCBT December unchanged at $8.92 ¾; MGE December up ¼ at $9.21 ¼.

Live cattle futures ended higher on Friday after drifting lower early in the session. Cash trade was underway Friday with prices steady with a week ago at $125-$126. The Cattle on Feed report showed a 12.5% decline in placements, a 2.8% increase in placements with November 1 cattle on feed down 5.3%. The estimates were near trade expectations, but reinforce the outlook for tightening beef supplies going forward. December cattle closed 55 cents higher at 126.15.

Lean hog futures closed higher. Futures bounced back from early losses. IA/MN cash hogs were 34 cents higher to $74.68. Eastern Corn Belt cash hogs, though, were $1.43 lower at $72.85. Pork prices were under pressure this week. On Friday the cutout was down another 93 cents to 82.23. Weakness in the pork market has been a check on futures, but the longer-term uptrend remains intact. December CME lean hogs settled 25 cents higher at $80.32.


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


Tube Series (TS) Conveyors

USC’s Tube Series Conveyors combine the gentleness of the signature Seed Series with the traditional stability of a tube-style conveyor, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form