Ag markets seemed pretty divergent Friday morning

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

Short-covering seemed to dominate Friday morning grain trading. Traders are seeing little fresh news today and probably don’t expect much before next Monday’s Crop Progress report. The WASDE report follows next Wednesday. Anticipation of those releases may be encouraging traders to accelerate pre-weekend short-covering in the wake of the recent corn/wheat breakdown. July corn ran up 4.75 cents to $4.5375/bushel around midsession Friday, while December gained 3.75 cents to $4.51.

The soy complex turned mixed late Friday morning. As with corn, little news concerning soybeans and products has come out since Thursday’s export data were released. Oil is apparently being supported by strong short-covering, but technically weak beans and meal are seemingly benefiting little from such buying. July soybeans sagged 3.0 cents to $14.575/bushel as lunchtime loomed Friday, while July soyoil rallied 0.41 cents to 39.10 cents/pound, and July soymeal slid $2.7 to $487.9/ton.

The wheat markets also appear to be staging a short-covering rally. As with corn and beans, little fresh wheat news has emerged. That also seems to be spurring active short-covering prior to the weekend. Conditions in the southern and western Plains seem somewhat less favorable than those in the eastern Corn Belt, which may partially explain KC and MWE strength versus CBOT. July CBOT wheat futures bounced 5.5 cents to $6.1125/bushel late Friday morning, while July KCBT wheat jumped 12.5 cents to $7.265 and July MWE futures surged 10.0 cents to $7.005.

CME cattle prices turned mixed before midsession Friday. CME live cattle futures rose this week as traders came to anticipate firm-higher cash prices before the weekend. The nearby contracts have sustained the move, but deferred futures are weakening. That may reflect big wholesale losses posted yesterday afternoon and suspicions that seasonal cash/beef weakness will re-emerge by mid-June. August cattle moved up 0.22 cent to 141.55 cents/pound in late Friday-morning action, while December fell 0.35 cents to 147.27. Meanwhile, August feeder cattle rose 0.25 cents to 200.07 cents/pound, but October lost 0.05 to 200.47.

Seasonal optimism seems to be powering CME hogs. Thursday afternoon cash strength seemed supportive of Chicago swine futures despite concurrent pork weakness. Hog traders rather clearly continue expecting a big summer price surge, as indicated by the big July-August premiums being built upon at this juncture. August hog futures climbed 0.47 cents to 128.67 cents/pound around midsession Friday, while December surged 0.77 cents to 94.67.

Cotton futures remained weak Friday morning. Unlike the grain markets, cotton futures continued their recent slide last night and again this morning. There’s little fresh news, but one has to wonder if talk of rain across northern Texas is keeping pressure on prices. ICE values also look vulnerable to a follow-through drop. July cotton sank 0.32 cents to 85.18 cents/pound shortly before noon (EDT) Friday, while December cotton slipped 0.06 to 77.56.

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

Pacesetter Grain Hopper

The Pacesetter Gain Hopper features original and innovative ideas like the patented RollerTrap™, the industry’s easiest to open and maintain trap ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form