Cotton diverged badly from Tuesday's general ag advance

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

Corn futures rebounded strongly Tuesday afternoon. Corn futures began today’s trading weakly, but posted a surprising afternoon bounce. Traders may have responded to talk that last week’s USDA forecast of a large 2014 U.S. corn crop was overly optimistic. Wire service reports cited fund buying for a portion of the advance. March corn climbed 4.25 cents to $4.5575/bushel at Tuesday’s close, while May bounced 3.5 to $4.6125.

The soy complex bounced from early lows. Soybeans and products traded weakly Monday night in apparent consolidation of recent gains. A mistaken announcement of a cancelled sale also depressed prices, but a subsequent announcement that the shipment in question was not a cancellation but a fresh sale sparked the subsequent resurgence. March soybeans jumped 12.5 cents to $13.99/bushel at their Tuesday settlement, while March soyoil dropped 0.17 cents to 40.58 cents/pound, and March soymeal gained $3.7 to $469.6/ton.

News of an Egyptian cancellation temporarily undercut wheat markets. The USDA announced Tuesday morning that Egypt had cancelled a wheat sale for 2013/14 delivery, which sparked aggressive selling across the various exchanges. However, the fact that it was a soft-red winter wheat sale enabled the KC and MWE markets to come back from their early lows. Most Chicago contracts joined the general advance later in the day. March CBOT wheat futures fell 2.75 cents to $6.15/bushel as pit trading ended Tuesday, while March KCBT wheat futures moved up 1.5 cents to $6.905, and March MWE futures surged 11.25 to $6.74.

Wholesale strength seemed to boost nearby cattle futures. Big wholesale gains posted Monday afternoon played a big role in boosting cattle futures Tuesday. The beef gains very likely persuaded traders that packers will pay up for fed cattle again later this week. April cattle futures soared 1.17 cents to 142.40 cents/pound at their Tuesday close, while August leapt 0.87 to 131.67. Meanwhile, March feeder cattle advanced 0.87 cents to 171.07 cents/pound, and May rose 1.05 to 173.37.

Hog futures also surged Tuesday. Seasonally rising cash and wholesale prices appeared to do little to boost hog futures Tuesday morning, but bulls rather obviously became more active as the day passed. Traders rather obviously expect much more of the same during the days ahead. April hogs spiked 1.32 cents to 100.57 cents/pound as the Tuesday CME session ended, while June ran up 0.82 to 108.95.

Cotton futures seemed to suffer a technical reversal Tuesday. Today’s early equity bounce seemed likely to support cotton futures, since the latter market has apparently followed the former lately. However, cotton bulls seemed to throw in the towel on long positions after the most-active May futures again proved unable to sustain an early push over the 90-cent level. ICE cotton prices fell rather sharply as a result. May cotton dove 1.95 cents to 87.35 cents/pound as New York trading ended Tuesday, while December cotton tumbled 0.74 cents to 77.51.


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


1325 Bushel Grain Cart

Equipped with a 22” computer balanced auger with 5/16” flighting,the unloading speed is 50% faster than smaller grain carts with ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form