Ag markets remained under pressure Friday morning

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

Bullard comments may have depressed commodities Friday. The commodity sector moved generally lower Friday morning, seeming to react negatively to a suggestion from St. Louis Fed President James Bullard that the Fed may undertake a ‘small taper’ of its bond buying program next month. The crop markets, including corn, followed gold and energy prices lower. December corn sank 7.25 cents to $4.5225/bushel around midsession Friday, and May lost 7.0 cents to $4.7325.

The soy complex suffered rather badly Friday morning. Soybean and product prices proved quite vulnerable to the general commodity decline posted in early Friday trading. Ongoing rainfall over the Corn Belt, as well as the negative demand implications of the fresh ‘taper’ talk probably weighed upon prices, as did losses in the Asian palm oil markets. November soybeans dove 19.5 cents to $13.20/bushel in late-morning trading, while October soyoil tanked by 0.43 cents to 42.281 cents/pound, and October soymeal declined $5.7 to $415.9/ton.

Wheat futures also declined in late-week trading. The wheat markets showed little ability to resist the general downdraft in commodity prices Friday. Fed President Bullard’s statements probably played a role in the drop, but traders may also be anticipating a much larger 2014 winter wheat crop in light of recent rainfall over the Great Plains. December CBOT wheat dropped 11.5 cents to $6.455/bushel Friday morning, while December KCBT wheat slumped 9.25 cents to $6.9275, and December MGE futures sagged 4.75 cents to $7.0375.

Cattle futures bucked the downward trend as lunchtime approached Friday. Although future beef demand might also suffer in an atmosphere implied by the bearish market reaction to the Bullard statement about Fed tapering, live cattle futures proved able to post modest gains late Friday morning. That may have reflected cautious optimism about the likely outcome of this week’s cash trading, as well as short-covering ahead of this afternoon’s, USDA Cattle on Feed report. October cattle futures edged up 0.1 cents to 126.02 cents/pound in late-morning trading, while December inched 0.07 higher to 129.80. Meanwhile, October feeder cattle rallied 0.75 cents to 160.12 cents/pound on the grain and soy weakness, and January added 0.42 cents to 160.40.

Hog futures also took it on the chin as the weekend approached. Recent weakness in wholesale pork values has apparently tended to cap rally attempts in hog futures despite rising cash values. However, Friday morning calls implied country market weakness as well, thereby seeming to spark active selling in Chicago. October hog futures had fallen 1.02 cents to 90.12 cents/pound by late Friday morning, while December tumbled 1.00 cent to 86.30.

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...

Related Articles

No matching related articles at this time.

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