Cotton, soyoil diverged from general ag strength Thursday night

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

Traders seemed to focus on reduced Chinese production Thursday night. The private crop tour of the Midwest yielded huge production forecasts yesterday, but CBOT prices inched upward again overnight. That probably reflects news that drought in northeastern China could chop 3.5 million tonnes from that nation’s harvest. September corn edged up 1.75 cents to $3.64/bushel in early Friday action, while December added 1.0 to $3.70.

Talk of demand strength continues supporting beans and meal. The ongoing crop tour is also pointing to a huge fall soybean harvest, thereby keeping persistent pressure upon new crop futures. However, the expiring September bean and meal contracts are leading those markets higher in the face of the bearish supply outlook. Oil is still suffering from the global vegoil glut. September soybean futures jumped 16.75 cents to $11.53/bushel Thursday night, while November futures advanced 5.0 cents to $10.4325. September soyoil skidded 0.13 cents to 32.65 cents/pound, and September soymeal surged $10.0 to $423.8/ton.

Reduced Canadian production is apparently supporting wheat prices. The global wheat situation still looks well supplied, but Thursday’s modest reduction in Canadian production forecasts alleviated the pressure somewhat. The underlying strength of global protein demand may also be encouraging bulls. Major moving average resistance may limit upside potential. September CBOT wheat gained 3.25 cents to $5.495/bushel early Friday morning, while September KC wheat lifted 4.75 cents to $6.2675/bushel, and September MWE wheat moved up 4.25 to $6.20.

Cattle futures are trading mixed again Friday morning. Midweek news of cash and wholesale weakness weighed upon cattle futures, but the Chicago market seemed to stabilize yesterday. That was again the case last night, with most-active October futures edging higher and most other contracts suffering modest losses. Traders rather obviously worry about a resumption of the recent downtrend next week. October live cattle futures rose 0.20 cents to 145.75 cents/pound as Friday dawned over Chicago, while December futures slipped 0.10 to 148.50. Meanwhile, September feeder futures inched up 0.07 cents to 209.50 and November futures climbed 0.15 to 207.50.

Hog traders suspect futures hit late-summer lows yesterday. The cash hog and wholesale markets posted moderate losses again Thursday, thereby continuing the recent breakdown. However, traders viewed the action posted CME pit as likely signaling a reversal, and bought rather aggressively last night as a result. October hogs rallied 0.65 cents to 94.27 cents/pound early Friday morning, while December ran up 0.55 to 88.10.

Cotton futures remained weak Thursday night. Thursday’s cotton export figure seemed to disappoint ICE traders, but the fact that the most-active December future failed at major moving average resistance also played a big role in the subsequent decline. The slide continued amidst a lack of news overnight. December cotton dipped 0.40 cents to 65.52 cents/pound shortly after sunrise Friday, while March futures slumped 0.31 cents to 66.11.

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

Blend and Bulk Tower Systems

Waconia Towers provide speed, efficiency and reliability that only gravity-fed systems can offer. Towers are available with up to 300 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form