Ag markets posted divergent reactions to Friday's USDA data

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

Corn futures reacted strongly to Friday’s USDA data. Despite news of a sizeable U.S. corn sale this morning, corn futures remained under pressure ahead of the late-morning USDA reports. However, the data looked quite bullish for the yellow grain outlook, since the USDA cut its estimate of the 2013 U.S. crop and posted stock totals well below forecasts. March corn futures jumped 20.75 cents to $4.3275/bushel at Friday’s close, while May soared 20.5 to $4.4075/bushel.

The USDA reports partially sustained early soybean and meal gains. Talk of vigorous demand reportedly boosted beans and meal through early Friday morning trading. The USDA reports were generally seen as supportive for the soy complex, because the USDA stated December bean stocks slightly below expectations. Other numbers were less friendly, so CBOT prices set back from early highs. March soybeans settled 4.75 cents higher at $12.785/bushel Friday afternoon, while March soyoil bounced 0.27 cents to 38.23 cents/pound, but March soymeal dipped $0.7 to $413.6/ton.

The wheat markets traded poorly after the USDA reports. Early-Friday news of Taiwanese and Venezuela buying supported wheat futures. Major premiums for high-protein spring wheat in Minneapolis also supported that market. However, prices dove after the USDA released its latest reports, since the December stocks total and the 2013/14 carryout figure topped expectations. March CBOT wheat futures tumbled 15.25 cents to $5.69/bushel in late Friday action, while March KCBT wheat futures fell 13.0 cents to $6.26, and March MWE futures dropped 8.75 to $6.205.

Record prices are supported cattle futures Friday. After proving surprisingly weak Thursday, the cattle market seemed set to resume its late-2013 rally Friday. Beef cutout values jumped to record highs Thursday afternoon and were followed to a fresh all-time peak by the cash markets as the work week concluded. This seems to bode well for next week’s trading. February cattle futures climbed 0.15 cents to 136.70 cents/pound at their Friday settlement, and April futures gained 0.10 to 137.35. Meanwhile, March feeder cattle futures reversed downward by 1.17 cents to 167.65 cents/pound, and May sank 1.02 to 168.90.

Hog futures also moved up Friday. Ideas that the hog market is set for a technical and seasonal rally apparently supported CME hog prices as the week’s trading ended. Thursday’s late wholesale strength and mixed-to-firm cash quotes may have encouraged bulls looking for a surge into mid-February. Record cattle and beef prices probably helped the bullish cause as well. February hogs advanced 0.57 cents to 85.82 cents/pound as CME pit trading ended Friday, while June rose 0.30 to 100.90.

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

Aluminum Grain Trailers

Maurer Manufacturing offers a complete line of high quality aluminum grain trailers. Manufactured in Spencer, Iowa, Maurer aluminum grain trailers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form