Agricultural markets were mixed Monday morning

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

After beginning the week slightly lower, corn futures bounced modestly in response to the weekly Export Inspections report issued around midmorning Monday. Wire service sources also cited light short-covering for a portion of the rebound, especially after the nearby March contract had closed lower for six consecutive CBOT sessions. March corn was trading 0.75 cents higher, at $7.0975/bushel in late-morning trading, whereas December had slipped 1.0 cent to $5.6225.

Soybean futures continued their recent breakdown Monday, with market observers citing persistent weakness stemming from the February 8 WASDE report. The USDA boosted its forecast of global soybean carryout for 2012-13 over 1% on that release, which substantially exceeded expectations. The industry may also be reacting to moderate improvements in short-term weather forecasts for dry Argentine soybean fields. March soybeans had fallen 18.0 cents to 14.345 late Monday morning, while March soyoil dropped 0.27 cents to 51.16 cents/pound, while March meal sank $8.16 to 414.3/ton.

The Monday morning export inspections report apparently did little to excite wheat traders, since they quickly reversed their initial bullish reaction. Bulls are probably disappointed with early-week activity, especially after Russia announced it would suspect a 5% import tariff on wheat imports in order to alleviate its domestic supply shortage. Large soybean losses may be dragging wheat lower as well. March CBOT wheat futures were trading 7.0 cents lower, at $7.4925/bushel around noon, while March KCBT wheat had slipped just 2.5 cents to $7.9725, and March MGE futures slid 4.25 cents to $8.32.

After opening weakly, CME live cattle futures posted a moderate bounce late on Monday morning. We suspect talk of a lengthy Russian ban on U.S. product weighed rather heavily upon prices late last week and again this morning, particularly when those were viewed in light of relatively strong Russian buying over the past two years. However, the decline seemingly lost its downward momentum, which may have prompted the subsequent rebound. April cattle rose 0.22 cents lower to 130.35 in late-morning trading, while August bounced 0.30 cents to 126.77. Meanwhile, March feeder cattle were 0.32 cents lower, at 144.67 cents/pound at that point, and August had rebounded 0.60 cents to 157.30.

Hog futures were generally mixed to slightly higher around mid-session Monday. News of the Russian embargo on American meat probably weighed upon prices somewhat, but the realization that Russia is a much smaller player on the pork side may have prompted the subsequent bounce. We wonder if anticipation of a last-gasp mid-winter bounce boosted Chicago prices. April hogs had risen 0.32 cents to 86.45 cents/pound by mid-session, while June gained 0.02 cents to 94.52.

After traded in mixed fashion in early morning action, cotton futures rallied late Monday morning. We suspect two tentative U.S. acreage forecasts reports, one from the National Cotton Council and another from the long-term outlook published by the USDA this morning, sparked the late advance, because both implied substantial reductions in domestic cotton plantings this spring. March cotton had risen 0.20 cents to 82.87 cents/pound in late-morning activity, while its December counterpart had climbed 0.31 cents to 83.23.

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

Demco 1400 Grain Cart

Demco offers a 1400 bushel grain cart to provide unmatched efficiency and operator convenience. In addition to the large 1400 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form