Ag markets getting off to a poor start this week

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


Corn resumed its late-week decline Sunday night. CBOT traders apparently remain worried about the possibility of persistent Chinese rejections of U.S. corn shipments contaminated with an unapproved GMO strain this month. Thus, corn futures continued their breakdown begun late last week. March corn futures dropped 4.0 cents to $4.215/bushel early Monday morning, while May lost 4.0 cents to 4.2975.

Soybeans proved unable to build upon Friday’s late rally. Little substantive news concerning soybeans emerged over the weekend, although oil market bulls could point to a bounce in palm oil values. Nevertheless, traders were seemingly unwilling to push prices higher despite Friday’s surprisingly strong close. One has to suspect they’re still concerned about good South American weather and increased production from that region. January soybeans fell 4.25 cents to $13.2325/bushel as the week’s trading got underway, while January soyoil dipped 0.03 cents to 39.80 cents/pound, and January soymeal slid $1.7 to $430.9/ton.

The wheat markets continued sliding to start this week. Huge 2013 global wheat production and the resulting stockpiles are rather obviously weighing upon prices. Weekend trade news and talk of a big increase in Russian grain production probably added to the general pressure. March CBOT wheat futures tumbled 3.75 cents to $6.25/bushel in pre-dawn Monday action, while March KCBT wheat futures declined 2.0 cents to $6.705, and March MWE futures skidded 1.25 cent to $6.5925.

Diminished cash expectations reportedly weighed upon cattle futures last Friday. After improving around midweek, cash market expectations dimmed Friday. Indeed, country prices posted around the close indicated a $1/cwt (cent/pound) decline from the week prior. Still, wintry weather, limited feedlot supplies and seasonally declining marketings seem likely to limit losses during the days and weeks ahead. February cattle futures settled 0.25 cents lower at 132.85 cents/pound Friday afternoon, and April futures slipped 0.32 to 133.80. Meanwhile, January and March feeder cattle futures ended the week having stabilized at 167.07 and 166.55 cents/pound, respectively.

Hog futures reacted poorly to the last week’s pork news. Hopes for renewed seasonal strength as country hog prices rose Wednesday and Thursday supported swine futures. However, a near-unanimous Thursday dive in pork prices set the stage for a poor CME showing Friday. Persistent midsession weakness seemingly caused traders to forget any short-term cash strength. February hog futures dove 0.82 cents to 87.17 cents/pound in late Friday action, while June sagged 0.30 to 99.50.

Chinese news depressed cotton futures over the weekend. Cotton futures rallied strongly last week, but weekend news started this week on a poor note. Not only did Chinese officials announce that their November cotton imports had fallen 43% below the comparable year-ago figure, they also announced that they are raising their benchmark for calculating import tariffs. Those seemingly presage persistently weak import demand. March cotton futures sank 0.66 cents to 82.56 cents/pound just after sunrise (EST) Monday, and July cotton slumped 0.34 cents to 81.93.


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


NORAC UC4.5™ & UC5™ Precision Spray Height Control

NORAC offers two Spray Height Control systems that can be installed on most sprayer models. UC5™ is an ISOBUS system ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form