Ag markets proved quite mixed Tuesday night

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

The Crop Progress report weighed on grain futures Tuesday night. Tuesday’s belated weekly USDA Crop Progress report stated corn plantings at 88% complete, which matched industry expectations. That seemingly opened the door to a follow-through on yesterday’s CBOT decline, especially since weather forecasts imply conditions favor good plant development. July corn sank 3.25 cents to $4.665/bushel early Wednesday morning, while December lost 2.0 cents to $4.6425.

Soy futures rallied in the face of bearish news. The Crop Progress report indicated that U.S. soybean plantings had surged last week, with the 59% completion rate topping forecasts by four points. Having nearby July futures lead the complex higher despite that news and concurrent Asian palm weakness suggests traders recalled the tightness of the old crop situation. Technical support also seemed to provide a springboard for the July bean bounce. July soybeans rallied 8.25 cents to $14.97/bushel Tuesday night, while July soyoil gained 0.15 cents to 40.09 cents/pound, and July soymeal rebounded $3.0 to $497.2/ton.

Bearish news only modestly depressed wheat markets last night. The Crop Progress report stated spring wheat plantings farther along than expected, while winter wheat conditions improved after weekend rains. In addition, Russian officials boosted their 2014/15 export forecast by 3.0 million to (25 million tonnes). Having Egyptian officials talk of boosting quality standards for imported wheat may have helped U.S. sales prospects. July CBOT wheat futures slid 3.75 cents to $6.3725/bushel in early Wednesday action, while July KCBT wheat slipped 1.75 cents to $7.365, and July MWE futures dipped 1.25 cents to $7.1725.

Persistent beef gains are probably encouraging cattle traders. Expectations for continued seasonal cash losses have clearly depressed live cattle futures lately. However, wholesale prices have stubbornly refused to join the generally decline. Indeed, the sizeable beef gains posted Tuesday afternoon likely powered the overnight CME bounce. June cattle rose 0.25 cents to 135.85 cents/pound early Wednesday morning, while December added 0.20 cents to 144.15. Meanwhile, August feeder cattle ran up 0.37 cents to 193.87 cents/pound, and October gained 0.10 cents to 194.97.

Hog futures weren’t helped by the latest cash and wholesale reports. In contrast to the cattle market, hog traders expect strong seasonal gains as summer advances. However, Tuesday’s late cash and pork reports refused to cooperate, with prices declining across the board. That largely explains overnight losses posted by 2014 swine futures. June hog futures fell 0.97 cents to 115.52 cents/pound as Wednesday dawned over Chicago, while December slumped 0.20 to 95.10.

Cotton futures were mixed Tuesday night. The weekly Crop Progress report showed cotton planting increased substantially last week, but lost ground to accelerating rates seen last year. That probably explains the limited new-crop losses experienced overnight. In contrast, surging equity markets imply continued economic strength, with the indicated vigor of apparel demand seemingly sparking the bounce in July futures. July cotton advanced 0.73 cents to 85.70 cents/pound shortly after sunrise Wednesday, while December cotton stalled at 77.86.


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