Ag markets proved quite strong Tuesday. Cattle lagged

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

Planting concerns boosted the corn market again Tuesday. The weekly USDA report on planting progress showed corn seedings at 19% complete, which fell well below average and about 2% below forecasts. Such concerns aren’t going away quickly, especially with cool, wet weather forecast for this week. Talk of firm cash markets also encouraged bulls. May corn climbed 8.0 cents to $5.1575/bushel at their Tuesday close, while December added 5.25 cents to $5.1225.

Talk of strong demand supported the soy complex. Although one wire service published a report of increased Argentine production, the soy complex posted across-the-board gains today. Talk of robust demand and tight old crop supplies reportedly boosted CBOT prices; deferred futures also rose, but continued corn delays suggest increased bean plantings in late spring. May soybeans jumped 15.75 cents to $15.24/bushel Tuesday afternoon, while May soyoil gained 0.15 cents to 42.77 cents/pound, and May soymeal rose $3.0 to $499.9/ton.

Anecdotal wheat tour reports likely spurred futures gains. The USDA Crop Progress report indicated that winter wheat conditions had declined again last week, but futures hardly reacted overnight. However, the Wheat Quality Council Tour is now underway, with analysts tweeting bullish results from the field; that’s why KC led the way higher. May CBOT wheat futures rallied 7.75 cents to $7.08/bushel in late Tuesday action, while May KCBT wheat futures leapt 14.0 cents to $7.9725 whereas May MWE futures slipped 3.0 to $7.4725.

Worries about seasonal weakness may have limited cattle gains Tuesday. Although the cash cattle and wholesale markets have held up well lately, traders still worry about a big supply-driven decline through the second quarter. That’s probably the reason for today’s marginal gains despite ongoing choice beef gains. June cattle futures edged 0.20 cents higher to 137.02 cents/pound as Tuesday’s pit session ended, while December slid 0.25 cents to 142.37. Meanwhile, May feeder cattle dropped 0.52 cents to 180.57 cents/pound, but August inched up 0.20 cents to 186.55.

Anticipation of seasonal strength likely sparked hog gains. The hog and pork complex proved quite firm Monday, but both cash and pork values seemed relatively weak this morning. The expiring May future dipped, but the deferred contracts rose in apparent anticipation of sizeable seasonal gains through late spring. June hog futures rallied 1.05 cents to 125.27 cents/pound in late Tuesday action, while December surged 1.50 to 92.95.

Cotton futures seemingly bounced from technical support. The weekly USDA Crop Progress report indicated that cotton seedings had advanced only 4% to 13% complete last week. The fact that Texas plantings are running well behind normal seemed supportive, especially with drought persisting in that region. However, having major support hold at their 40-day moving averages probably played a bigger role in today’s big surge. July cotton soared 1.83 cents to 94.06 cents/pound at Tuesday’s ICE settlement, while December cotton ran up 0.68 to 83.42.

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