Ag markets posted mixed closes Thursday

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

Talk of increased demand seemingly boosted corn prices Thursday. Corn futures continued their modest rise Thursday, with traders citing strong livestock demand for feed in current frigid conditions, as well as improved usage by ethanol producers. Futures may also have responded to diminished rainfall in the latest South American forecasts. March corn closed up 2.75 cents to $4.29/bushel Thursday afternoon, while May rose 2.25 to $4.3525/bushel.

Cash weakness reportedly undercut the soy complex. Soybean and product futures apparently derived considerable support from drier forecasts for Brazil and Argentina Thursday. However, late reports cited Chinese switching from U.S. to South American bean purchases lately, thereby confirming recent talk to that effect. Moreover, midday reports indicated widespread country market weakness, which added to the afternoon pressure. March soybean futures settled 2.5 cents lower at $12.77/bushel in late Thursday action, while March soyoil edged up 0.02 cents to 37.86 cents/pound, and March soymeal edged down $0.7 to $418.7/ton.

Cold weather forecasts powered Thursday’s wheat advance. Talk of robust export demand continued supporting wheat futures today, but the main impetus for their gains almost surely stemmed from the latest weather forecasts. Those reflect fresh predictions for arctic weather over much of the country into early February, thereby increasing the chances for freeze damage to winter wheat. March CBOT wheat futures surged 8.75 cents to $5.70/bushel as trading wound down Thursday, while March KCBT wheat futures jumped 7.5 cents to $6.3225, and March MWE futures moved up 0.25 to $6.1725.

Cattle futures lost their upward momentum Thursday. News that beef packers paid $150/cwt (cents/pound) for fed cattle Wednesday afternoon boosted CME futures overnight. However, today’s noon beef report confirmed suspicions that wholesale prices were set to reverse. Given the size of the recent price spike, it wasn’t terribly surprising to see futures struggle today. February cattle futures settled 0.25 cents higher at 143.92 cents/pound Thursday afternoon, but April futures dove 1.20 to 140.60. Meanwhile, March feeder cattle futures dropped 0.50 cents to 169.87 cents/pound, and May fell 0.67 to 170.82.

Premiums again hampered bullish efforts in hog futures. The hog and pork markets have proven mixed to moderately stronger lately. However, widespread anticipation of a much larger move has kept CME futures supported at significantly higher levels. Thus, mediocre cash/pork news exerted fresh downward pressure upon Chicago prices. February hogs inched up 0.02 cents to 85.57 cents/pound as Thursday’s pit session ended, while June added 0.10 to 102.00.

Technical factors seemed to undercut cotton futures Thursday afternoon. A Chinese cotton industry association released several supportive reports and statements Wednesday night, but ICE traders essentially ignored them all. Instead, futures apparently turned lower in response to a seemingly bearish reversal signal posted Wednesday. March cotton tumbled 0.51 cents to 87.33 cents/pound at their Thursday settlement, while July cotton lost 0.13 cents to 87.54.

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

Smooth Wall Grain Bins

Meridian’s SmoothWall bins are the ultimate storage bins, used to handle and store fertilizer, grain, feed and seed, and extend ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form