Ag markets turned mixed again Monday morning
Corn futures moved lower Monday morning. The USDA forecast 2014 corn acreage at 79.5 million acres last week and predicted a large 2014 crop and large ending stocks next year. That news apparently depressed prices last Friday and again Sunday night. They continued sliding this morning despite concurrent bean gains. The Export Inspections data met expectations. March corn sank 2.25 cents to $4.575/bushel Monday morning, while May lost 2.25 to $4.5675.
Last Friday’s Oil World news seemingly offered sustained soybean support. Although current forecasts seem favorable for South American grain and soy crops, traders seemed to give those predictions short-shrift this morning. Instead, they appeared to pay more attention to last Friday’s Oil World estimate of Brazil’s forthcoming bean crop at just 85 million tonnes, whereas the latest USDA figure came in at 90 mmt. March soybeans surged 14.0 cents to $13.8475/bushel late Monday morning, while March soyoil slipped 0.06 cents to 40.89 cents/pound, and March soymeal rallied $7.6 to $463.4/ton.
The wheat markets turned higher by late Monday morning. Wheat futures continued their late-week slide early this morning, but most rebounded moderately by late morning. The bounce may mark a reaction to milder short-term weather forecasts for central U.S. Traders may also think the outlook for the North American season is looking less favorable. As in corn and beans, the weekly Export Inspections data seemed neutral. March CBOT wheat futures bounced 2.75 cents to $6.125/bushel around midsession Monday, while March KCBT wheat futures added 0.75 cent to $6.835, but March MWE futures sagged 2.5 to $6.6175.
The Cattle on Feed data are depressing deferred cattle futures today. Last week’s strong cash market result is apparently boosting the February contract as it nears Friday’s expiration. However, surprisingly large January feedlot placements on last Friday’s USDA COF report are weighing on the deferred contracts, since that implies increased fed cattle supplies by late spring. April cattle futures slid 0.07 cents to 141.37 cents/pound as the lunch hour loomed Monday, while August dropped 0.45 to 130.85. Meanwhile, March feeder cattle tumbled 0.27 cents to 170.42 cents/pound, and May lost 0.10 to 172.12.
Bulls expect continued short-term hog strength. Bullish hog traders are still anticipating strong increases in hog and pork prices during the weeks just ahead. However, declines in the deferred contracts suggest diminished optimism about summer prospects. April hogs gained 0.27 cents to 99.62 cents/pound late Monday morning, while June skidded 0.15 to 107.87.
- Partnership to develop nitrogen enhancement technology
- No export bonanza this year from record U.S. harvest
- Breeding soybeans that can tolerate heat, drought
- Crop storage issues may be less severe than anticipated
- Summit on herbicide resistance now available online
- Ag markets proved generally mixed Monday night
- How much corn can the ethanol industry use?
- USDA releases 2012 cash rents data report
- Commentary: Government wants farmers to quit farming
- Economist: Taxing P could reduce risk of algal blooms
- White House issues veto threat on bill to block WOTUS rule
- Resistant weeds not controlled by fall residuals