Ag markets took some rather divergent paths Wednesday

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

Favorable crop prospects seemed to renew pressure on CBOT corn Wednesday. Talk that recent corn and wheat losses will reinvigorate demand boosted those markets Tuesday night, but yellow grain increases prices couldn’t be sustained. Traders apparently resumed their recent sales in response to the favorable moisture situation across the Corn Belt. July corn slipped 2.0 cents to $4.5625/bushel in late Wednesday trading, while December slid 0.75 cent to $4.535.

The soy complex proved very mixed Wednesday. Favorable Corn Belt weather seemed to weigh on most soybean futures, despite the fact that old-crop quotes aren’t really subject to the new crop situation. Ultimately, bulls pushed the July contract price slightly above its pivotal 40-day moving average. Strong technical buying boosted oil, whereas meal seemed to suffer as crush spreads were unwound. July soybeans climbed 1.25 cents to $14.825/bushel Wednesday afternoon, while July soyoil jumped 0.90 cents to 39.25 cents/pound, and July soymeal sagged $3.1 to $496.5/ton.

Old-crop activity seems to support the wheat markets. The improved U.S. moisture situation and bearish international fundamentals have depressed wheat prices lately. Traders now suspect those losses will trigger renewed export interest, whereas the lower prices are discouraging farmer sales. Whatever the underlying cause, futures proving surprisingly firm. July CBOT wheat futures rallied 2.0 cents to $6.145/bushel at their Wednesday settlement, while July KCBT wheat added 5.75 cents to $7.135 and July MWE futures ran up 5.0 cents to $6.895.

Cattle futures ended Wednesday mostly higher. Buying from grocers is apparently proving quite strong on a seasonal basis, thereby playing a big role in this week’s early gains. However, one has to wonder if packers will pay up for country cattle later this week, since fed cattle supplies are usually approaching their annual highs at this time. That probably explains today’s June futures slippage. August cattle settled 0.10 cents higher at 140.17 cents/pound Wednesday, while December gained 0.45 cents to 146.82. Meanwhile, August feeder cattle bounced 0.47 cents to 198.77 cents/pound, and October advanced 0.65 to 199.92.

Cash slippage seemed to weigh on Chicago hogs. Although the hog/pork industry is anticipating a big summer rally as seasonally strong demand is met by supplies truncated by piglet losses to PEDV disease, the cash and wholesale markets didn’t cooperate this morning. That seemed to trigger losses by most contracts, but August edged slightly higher. August hog futures crept up 0.15 cents to 127.80 cents/pound in late Wednesday action, while December dropped 0.47 to 94.27.

Poor export news may have undercut cotton futures. The U.S. Commerce Department published its latest cotton export data this morning, with the April figure, at 235,097 running bales, falling about 80,000 or 25% below the comparable year-ago figure. That news probably sparked today’s ICE losses. July cotton dove 1.28 cents to 86.08 cents/pound as ICE trading ended Wednesday, while December cotton tumbled 0.22 to 77.88.

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