Beans, hogs diverged from weakness in the other ag markets

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

Demand and weather considerations are supporting corn futures. Although the weekly USDA Crop Progress report indicated corn plantings had surged last week, prospects for much slower rates this week are probably supporting deferred CBOT futures. Meanwhile, nearby futures seemingly reflect fresh talk of old-crop demand strength. July corn edged up 1.0 cent to $5.005/bushel Tuesday morning, while December rose 1.5 cents to $4.935.

Soybeans are rallying despite strong planting progress. The weekly report also indicated bean plantings had surged last week, but forthcoming rains are almost surely going to delay bean seedings as well. But, even more so than with corn, the domestic soy situation is quite tight, which is almost surely encouraging the buying being seen in Chicago today. July soybeans surged 16.5 cents to $14.8175/bushel in late Tuesday morning action, while July soyoil rallied 0.33 to 41.31 cents/pound, and July soymeal rallied $6.0 to $484.2/ton.

Wheat futures continue suffering from bearish global forecasts. Monday’s Crop Progress showed continued deterioration of the winter wheat crop, and lagging spring wheat plantings. Moreover, frost hit Colorado and western Kansas last night and is expected to do so again tonight. Yet futures are lower today. This very likely reflects pessimism about the long-term outlook due to the bearish data on last Friday’s USDA WASDE report. July CBOT wheat futures fell 9.25 cents to $7.0575/bushel around midsession Tuesday, while July KCBT wheat futures sank 3.5 cents to $8.21, and July MWE futures dipped 3.5 to $7.8725.

Traders seem pessimistic about this week’s cash cattle trade. Increasing fed cattle supplies typically undercut cash prices through the second quarter. Expectations to that effect are seemingly weighing on cattle futures today, since CME prices are already priced far below the country quotes posted last week. June cattle dropped 0.50 cents to 137.15 cents/pound late Tuesday morning, while December skidded 0.30 to 144.47. Meanwhile, August feeder cattle inched up 0.07 cents to 191.95 cents/pound, and October lost 0.12 cents to 192.47.

Cash strength likely sparked today’s early hog bounce. Mixed cash hog and pork values have affected CME swine futures lately. However, Chicago prices have apparently followed cash moves rather than those in pork values. Today’s early cash strength apparently translated into stronger CME quotes. June hog bounced 0.62 cents to 119.62 cents/pound around lunchtime Tuesday, while December slipped 0.02 to 94.05.

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


Made of high quality 304 stainless steel, the Quickveyor is one of the strongest trailers on the market. It’s belt ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form