Ag markets generally went their separate ways Friday

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

Events worked against bullish corn traders Friday morning. Corn futures reacted quite modestly to early morning news that China had bought 960,000 tonnes of new crop corn to China lately. That may have reflected prior rumors to that effect and/or concurrent U.S. dollar strength. Bulls may also have been handicapped by the latest weather forecasts for the U.S. Corn Belt, which seem less ominous than those seen earlier in the week. September corn futures fell 9.0 cents to $5.5175/bushel around midsession Friday, while December dropped 12.5 cents to $5.145.

The soy complex accompanied corn prices lower Friday. Forecasts for somewhat better weather over the Corn Belt later this month apparently undercut the new crop corn and soy contracts Friday morning, while the expiring July bean and meal contracts were going off with a bang. Oil futures continue suffering from Asian palm oil weakness and its position on the wrong side of domestic crush decisions. August soybean futures dove 20.75 cents to $14.5125/bushel just before lunchtime Friday, while August soybean oil sank 0.36 cents to 46.17 cents/pound and August soymeal tumbled $6.4 to $451.6/ton.

The wheat outlook seems relatively promising at this juncture. Wheat futures surged early this week in response to active buying from Chinese officials. Indeed, given preceding stories about large Chinese grain losses to excessive rains, that buying seems likely to persist. When viewed within the context of the supportive data on the Thursday morning USDA WASDE report, it was not terribly surprising to see wheat futures rallying again Friday morning. September CBOT wheat climbed 2.75 cents to $6.8575/bushel by late Friday morning, while September KCBT wheat gained 5.0 cents to $7.135 and September MGE futures advanced 3.75 cents to $7.71.

Short-term pessimism is seemingly weighing upon cattle futures. Cattle traders anticipating a seasonal second-half rally have built significant premiums into 2013 CME futures. However, recent wholesale weakness and growing pessimism about the likely outcome of cash trading this week are apparently dragging prices downward at this point. August cattle skidded 0.07 cents to 121.85 cents/pound as traders started thinking about lunch Friday; December declined 0.10 cents to 128.35. August feeder futures bounced 0.15 cents to 150.27 cents/pound as corn futures reversed, while November surged 0.42 cents to 155.80.

Hog futures were weak again in early Friday trading. Ongoing wholesale losses are probably the main reason for the sustained weakness weighing upon Chicago prices at this point, since the decline very likely presages similar losses in cash values during the second half of the year. Discounted CME contracts look much less promising in that context. August hog futures stumbled 0.62 cents to 94.65 cents/pound around midsession Friday, while December sagged 0.37 cents to 81.07.


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


Quickveyor

Made of high quality 304 stainless steel, the Quickveyor is one of the strongest trailers on the market. It’s belt ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form