Ag markets moved generally higher Thursday morning

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

The weekly USDA Export Sales report seemed rather bearish for corn futures, since both the new and old crop totals came in modestly below forecast ranges. Nevertheless, corn futures turned sharply higher soon after the data release. That probably reflected short-covering ahead of the Friday morning release of the monthly USDA WASDE and Crop Production reports, especially since traders expect them to imply persistently tight domestic conditions over the short run. July corn rallied 9.0 cents to $6.42/bushel late Thursday morning, while December climbed 5.0 cents to $5.37.

Tight old crop conditions and firm country prices apparently kept nearby soybean futures well supported early Thursday morning despite disappointing mixed results on the weekly Export Sales report. Traders may also have been abandoning shorts ahead of the big USDA reports tomorrow. Indeed, they were probably more inclined to do so after the Brazilian agricultural department (CONAB) revised its estimate of the just-completed soybean harvest downward by 400,000 tonnes to 81.5 million. July soybean futures rose 14.25 cents to $14.05/bushel as the lunch hour loomed Thursday, while July soyoil climbed 0.44 cents to 49.26 cents/pound, and July soybean meal added $2.8 to $410.4/ton.

The Export Sales report seems supportive of old crop wheat futures, while disappointing results looked negative for the 2013/14 contracts. However, those considerations also fell by the wayside as traders seemed to start evening up net short positions ahead of the Friday morning USDA reports. The fact that those will contain the first official estimate of the current winter wheat crop could move the markets dramatically Friday afternoon, thereby seeming to prompt a rush for the exits. July CBOT wheat futures jumped 16.25 cents to $7.2225/bushel around midsession Thursday, while July KCBT wheat surged 14.75 cents to $7.75, and July MGE futures advanced 10.75 cents to $8.27.

Anticipation of seasonal weakness weighed upon cattle futures again in early Thursday trading despite the Wednesday afternoon choice beef cutout spike to a record high. Noon Wednesday news of significant cash market losses from week-ago levels probably encouraged persistent selling. On the other hand, the discounts already built into nearby futures could limit their downside potential. Prices had actually bounced somewhat around midsession Thursday. June cattle edged up 0.20 cents to 120.40 cents/pound late Thursday morning, while December inched 0.10 cents to 124.82. August feeder cattle futures climbed 0.37 cents to 145.70 cents/pound, while November added 0.05 cents to 150.15.

Hog prices usually buck the downward cattle trend at this time of year, as indicated by the big surge posted by country swine values of the past few weeks. However, with grocers likely completing their pork purchases for Memorial Day features during the days ahead, CME traders are apparently become quite cautious about the short-term outlook. That would explain the mixed trading seen Thursday morning. June hog futures dipped 0.15 cents to 91.62 cents/pound, while December futures lost 0.10 cents to 78.05.


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


Grain Storage Systems

Behlen Grain Storage Systems offers large capacity bins with diameters from 16’ to 157’ and capacities exceeding 1,500,000 bushels. All ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form