Ag markets generally strong Thursday morning

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

Corn futures built upon their overnight surge Thursday morning. Traders cited tight domestic supply conditions for a portion of the strength, as well as the prospect of continued delays to spring plantings for the CBOT gains. The weekly Export Sales report seemed generally neutral to supportive, since both the old and new crop result came in toward the upper end of forecast ranges. July corn surged 9.5 cents to $6.5625/bushel Thursday morning, while December advanced 3.25 cents to $5.5375.

The expiring May soybean contract seemingly rose in response to ongoing supply tightness, but deferred futures suffered modest losses. The potential for a big acreage shift from corn to beans is probably undermining the market. The Export Sales report actually seemed to favor the later contracts, since the stated 2012/13 net came in at -109,800 tonnes, while the 2013/14 figure jumped to 1,341,100 tonnes. July soybean futures slipped 0.25 cents to $13.7275/bushel around midsession Thursday, while July soyoil sank 0.17 cents to 48.68 cents/pound but July soybean meal climbed $1.2 to $405.6/ton.

Wheat futures moved generally higher Thursday morning. Actually, given the negative weather and crop news dominating the market lately, it was rather surprising that prices had not risen more substantially. Ultimately, recent gains may have fully incorporated the bullish views held by many in the market. The Export Sales report seemingly had little impact, possibly due to the neutral nature of the old crop result (new crop sales seemed supportive). July CBOT wheat futures rose 5.0 cents to $7.26/bushel in Thursday morning activity, while July KCBT wheat climbed 3.25 cents to $7.855 and July MGE futures jumped 6.5 cents to $8.2225.

Cattle futures continued their Wednesday surge Thursday morning. Late reports indicated considerable cash market firmness Wednesday afternoon, but spiking wholesale prices were almost surely powering the market upward once again. For example, choice cutout jumped 0.81 cents to 200.30 cents/pound, which marked its first time above the $2.00 level since October 2003. It certainly seems to be headed even higher. June cattle surged 1.42 cents to 123.90 cents/pound in Thursday morning trading, while December gained 0.75 cents to 128.57. August feeder cattle futures climbed 1.27 cents to 150.00 cents/pound, while November added 0.52 cents to 154.02

CME lean hog proved unable to follow cattle futures higher Thursday morning despite very similar fundamentals. That is, tight seasonal supplies and resurgent consumer demand will very likely push cash and wholesale prices higher over the next 6-8 weeks. However, CME futures are already trading at substantial premiums to spot values. Moreover, the midday wholesale quote posted a stunning decline. June hog futures slipped 0.45 cents to 92.50 cents/pound just before lunchtime Thursday, while December futures fell 0.45 cents to 78.20.


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


Convyers

Meridian’s conveyors deliver seed with unmatched versatility. Meridian’s transport conveyors are manufactured with heavy-duty, fully enclosed construction. Meridian’s cross cleated ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form