Ag markets decidedly mixed Wednesday afternoon

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

The financial market situation seems quite supportive of the commodity outlook at this point, since equities are rising from record highs and the dollar is quite weak today. Those usually imply firm commodity demand. Nevertheless, corn futures declined Wednesday. Tight old crop conditions seemed to limit early losses, but growing anticipation of accelerated plantings during the next week or so apparently undermined the whole complex as the day passed. July corn closed 7.0 cents lower at $6.33/bushel Wednesday afternoon, while December dropped 7.25 cents to $5.32.

Tight supplies and firm prices continued supporting nearby soybean futures Wednesday morning; bulls also got a boost from a USDA report of a 115,000-tonne sale to China for the 2013/14 crop year. Despite the possibility that accelerating corn plantings could diminish acreage switching from corn to beans, deferred soy futures also proved weaker than their nearby counterparts. The tight meal situation probably caused the divergence between the product markets. July soybean futures rose 8.0 cents to $13.9075/bushel at their Wednesday settlement, while July soyoil dipped 0.32 cents to 48.82 cents/pound, and July soybean meal climbed $5.2 to $408.5/ton.

Wheat futures slipped Wednesday morning in concert with their counterparts in the corn pit. However, uncertainty about the impact weather is having on the winter wheat crop and spring wheat plantings seemed to support the KCBT and MGE markets. Chicago price rather obviously moved lower in tandem with corn. July CBOT wheat futures slipped 3.0 cents to $7.06/bushel at its Wednesday close, while July KCBT wheat rose 2.25 cents to $7.6025, and July MGE futures advanced 10.25 cents to $8.1625.

Cattle futures succumbed to fresh downward pressure Wednesday in reaction to news that a few country cattle had traded 1-2 cents lower than last week just before noon. The cash and futures losses were rather stunning when viewed within the context of a 3.26-cent spike in choice beef cutout. That certainly suggests feedyard managers will prove much less willing to take lower prices for their cattle later this week. The nearby contracts are already trading at large discounts to cash. June cattle fell 0.62 cents to 120.20 cents/pound to end the Wednesday pit session, while December dropped 0.97 cents to 124.72. August feeder cattle futures tumbled 1.22 cents to 145.32 cents/pound, while November dove 0.67 cents to 150.10.

In contrast, to the cattle market, optimism about the short-term situation boosted CME hog futures Wednesday. The fact that country prices have risen dramatically over the past 2-3 weeks has almost surely translated into support for nearby futures, especially since their premiums to spot values have declined drastically during that time. June hog futures climbed 0.47 cents to 91.77 cents/pound at its Wednesday close, while December futures gained 0.20 cents to 78.15.

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 

e-Mail (required)


characters left

Pacesetter Grain Hopper

The Pacesetter Gain Hopper features original and innovative ideas like the patented RollerTrap™, the industry’s easiest to open and maintain trap ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form