Ag markets diverged significantly at Friday's close

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

Talk of strong demand limited seasonal pressure on corn futures Friday. Seasonal pressure from the record U.S. harvest and technical resistance kept corn futures underwater Friday morning. However, talk of vigorous demand and strength spilling over from the soy and wheat markets apparently limited corn losses. December corn futures closed down 0.75 cent at $4.2225/bushel Friday afternoon, while May slid 0.25 to $4.3525.

Soybeans and meal proved quite strong in week-ending action. Chinese officials revised their estimates of November soybean imports upward by about 200,000 tonnes early Friday morning. That news seemingly reemphasized the sheer size of previously established U.S. export commitments and powered CBOT soybean and meal gains. In contrast, slumping palm prices dragged soyoil futures lower. January soybean futures jumped 28.0 cents to $13.195/bushel in late Friday trading, while December soyoil declined 0.38 cents to 41.16 cents/pound, and December soymeal surged $16.8 to $427.8/ton.

Talk of export demand and Australian problems boosted the wheat markets. Western Australian wheat fields are being blessed with excessive rainfall, whereas fields on its east coast have reportedly suffered significant frost damage lately. Meanwhile, recent reports have rebooted optimism about export demand for U.S. grain. December CBOT wheat futures gained 0.75 cent to $6.495/bushel at Friday’s close, while December KCBT wheat futures climbed 7.0 cents to $7.0175, and December MWE futures rallied 3.0 to $6.9925.

Wholesale weakness seemingly offset stable cash cattle quotes Friday. Country cattle prices dipped Thursday, but the size of the decline was smaller than many anticipated. Conversely, beef cutout values fell rather substantially Thursday and were mixed at noon Friday. That slippage apparently weighed upon CME futures ahead of the Friday afternoon Cattle on Feed report. December cattle futures settled 0.02 cents higher at 131.47 Friday, while April futures sank 0.50 cents to 132.57. Meanwhile, January feeder cattle inched up 0.12 cents to 163.50 cents/pound, and March feeders added 0.10 cents to 163.37.

Persistent cash weakness probably undercut hog futures. Although wholesale quotes proved surprisingly firm Thursday afternoon, that good news was apparently more than offset by sizeable country losses in the country cash markets. The fact that the current decline has persisted into late November is very likely worrying bulls. December hog futures fell 0.62 cents to 85.62 cents/pound to end the week, while April sagged 0.25 cents to 93.00.


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


X-TENDED REACH GRAIN CARTS

YOUR BEST HARVEST IS NOW WITHIN REACH J&M introduces their patented line of X-tended Reach grain carts, featuring a frontfolding single ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form