Ag markets were generally mixed Monday night

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

Corn futures declined again Monday, with the main driver of the decline apparently being persistent weakness stemming from the USDA WASDE report from February 8. Improved precipitation prospects for both Argentina and the U.S. may also have weighed upon prices. Indeed, the market seemed to experience more of the same in Monday night-Tuesday morning activity. March corn slid 2.25 cents to$7.00/bushel overnight, while December fell 2.0 cents to $5.5675.

Soybean futures continued their recent breakdown Monday, but bounced slightly in overnight trading. Similar supply/demand fundamentals and weather considerations to those oppressing the corn market have been weighing upon beans. However, unlike corn, the nearby soybean contract settled on a par with technical support associated with its 40-day moving average Monday afternoon, which may have prompted the modest rebound experienced Monday night and Tuesday morning. March beans had risen 5.25 cents to $14.3675 in the pre-dawn hour, while March soyoil bounced 0.09 cents to 51.33 cents/pound, and March meal gained $2.9 to $415.9/ton.

Wheat futures continued their Monday decline in early Tuesday trading as well. Concurrent losses in the corn and soybean markets probably contributed to the slide yesterday, but the bulk of the ongoing drop can almost surely be blamed upon improvements in the Southern Plains moisture situation. Not only was that region blessed with significant rainfall over the weekend, a respected private forecaster released a guardedly optimistic weather forecast Monday morning. March CBOT wheat futures slipped another 3.5 cents to $7.38/bushel in overnight trading, while March KCBT wheat skidded 0.5 cents to $7.8825, and March MGE futures lost 1.0 cent to $8.25.

CME live cattle futures rose slightly Monday, then moved sideways to lower in Tuesday morning electronic activity. The concurrent bounce in choice cutout values may have supported the Chicago market, but traders will probably need to see much more of the same before they will be willing to actively sponsor the long side. Still, having the most-active April contract bounce back rather sharply from the eight-month low reached in early trading may inspire significant technical buying. April cattle were unchanged at 130.35 cents/pound overnight, while August dipped 0.07 cents to 126.35. Meanwhile, March feeder cattle slid 0.17 cents to 144.62 cents/pound, and August fell 0.07 cents to 157.60.

After rising slightly Monday, hog futures lost ground again overnight. Bullish traders were almost surely hoping weekend price stability had set the stage for a sustained rebound, especially with the CME lean hog index likely to remain above the 90.00-cent level when officially quoted later this morning. However, sizeable cash and wholesale losses Monday afternoon are probably weighing upon prices at this juncture. Technical traders may be looking for a follow-through breakdown from a seeming ‘bear flag’ formation on the April chart. April hogs had fallen 0.52 cents to 85.85 cents/pound in the early morning hours, while June had tumbled 0.77 cents to 94.00.

Cotton futures rallied Monday in response to two tentative forecasts for substantial reductions in U.S. cotton plantings this year. However, bulls could not sustain the move in overnight trading. The fact that they proved unable to mount a serious challenge of the recent 84.00-cent March futures high prompted fresh selling. Indeed, the daily chart for the nearby contract now looks like a market putting in a double top. March cotton fell 0.46 cents to 82.46 cents/pound early Tuesday morning, while December dove 0.84 cents to 83.00.


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 

Name
e-Mail (required)
Location

Comment:

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