Ag markets proved surprisingly volatile on Thursday

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

Disappointing export sales exaggerated early Thursday corn losses. Traders reportedly expect the USDA to boost its estimates of global corn supplies on tomorrow’s big reports, which seemingly weighed on CBOT futures Wednesday night. Those losses grew after the weekly Export Sales report stated last week’s result well below forecasts. March corn futures fell 5.0 cents at $4.12 bushel at their Thursday close, while May dropped 5.0 to $4.2025/bushel.

Short-covering apparently boosted the soy complex Thursday. CONAB published its latest soy production estimate for Brazil this morning. That was largely unchanged around 90 million tonnes, but Brazil’s Ag Minister stated that the crop could ‘easily’ top 95 million. The Export Sales total also fell far short of expectations. And yet, CBOT future rose moderately at the close. Traders were probably taking profits on short positions ahead of tomorrow’s USDA releases. March soybeans settled 4.5 cents higher at $12.7475/bushel Thursday afternoon, while March soyoil climbed 0.28 cents to 37.96 cents/pound, and March soymeal added $1.8 to $414.3/ton.

The wheat export data also disappointed. Overnight soy gains may have sparked buying in the wheat markets, especially with traders likely looking for an excuse to take profits on shorts ahead of Friday’s USDA reports. However, the Export Sales report stated last week’s total about half of the smallest forecast, thereby sending most wheat contracts lower. Conversely, large premiums for quality grain apparently supported the Minneapolis market. March CBOT wheat futures dove 4.5 cents to $5.8425/bushel late Thursday afternoon, while March KCBT wheat futures bounced 2.0 cents to $6.39, and March MWE futures gained 2.25 to $6.31.

Cattle futures backed away from early highs. Rising cash and wholesale prices played a big role in the recent CME advance, and are expected to remain seasonally strong through the first quarter. However, traders now seem to suspect warming temperatures will boost fed cattle marketings and depress spot prices during the days ahead. As usual, much depends upon the outcome of this week’s cash trading. February cattle futures rose 0.02 cents to 136.55 cents/pound at their Thursday settlement, while April futures gave back 0.10 and closed at 136.87. Meanwhile, March feeder cattle futures moved up 0.27 cents to 168.82 cents/pound, and May added 0.25 to 169.92.

Wholesale strength seemingly supported hog futures Thursday. Wednesday afternoon cash and pork weakness apparently depressed hog futures in early trading. However, the Chicago market bounced substantially from early lows, thereby seeming to reflect expectations for the stronger result on the midday wholesale report. The rebound also had significant technical connotations. February hogs closed down 0.32 cents to 85.25 cents/pound Thursday, and June tumbled 0.45 lower to 100.60.

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

LPV Seed Treater

The LPV Seed Treater has set a new standard boasting three configurable weighing methods for any-sized operation, a standard 42” ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form