Crop and livestock markets diverged Tuesday morning

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

Corn futures fell on unexpected overnight showers in central of Iowa on Tuesday morning. Cooler weather with moderate high-temperature around 80s F this week create favorable weather conditions for corn pollinating. USDA weekly condition rating good to excellent was unchanged at 63% from last week versus the drought-driven 26% rating posted last year. The prospect of increased production rather clearly depressed the corn market. However, the tight old crop situation probably limited declines. September corn futures are 18.25 cents lower to $5.225/bushel and the December contract fell 14.25 cents to $4.84.

Soybean futures prices followed corn lower in response to the beneficial weather forecasts. Large drops in soybean basis bids also exacerbated the bearish situation. In the news, oil world said that low Argentine soybean exports this season are likely to cause stronger export demand for U.S. new soybean crop. Decreasing palm oil prices due to sluggish export demand concerns also encouraged selling. August soybean futures descended 34.25 cents to $14.86/bushel. August soyoil moved 0.41 cents lower to 45.00 cents/pound, and August soybean meal fell $7.4 to $495.0/ton. November soybean prices dropped 8.75 cents to $12.7975 /bushel.

Wheat futures followed corn and soybeans lower Tuesday. The golden grain markets did not seem to suffer much from the bearish implication of find Midwest weather forecasts, since the Minneapolis spring wheat contracts declined only marginally. The prospect of huge domestic corn and bean supplies may have been the factor weighing heavily upon the winter wheat contracts. September CBOT wheat fell 7.5 cents to $6.5225/bushel around midsession Tuesday, while September KCBT wheat sagged 4.25 cents to $6.9775 and September MGE futures slid 1.75 cents to $7.45.

Cattle futures rallied moderately Tuesday morning. There was no obvious reason for the rise, although wire service reports cited widespread short-covering for a portion of those gains. Optimism spilling over from the hog and feeder cattle pits probably encouraged buying, especially among those looking for a seasonal rebound from annual cash market lows in the near future. August cattle climbed 0.37 cents to 122.25 cents/pound around lunchtime Tuesday, while December added 0.40 cents to 128.75. August feeder futures surged 1.02 cents to 153.95 cents/pound in reaction to the CBOT weakness, while November advanced 0.60 cents to 159.37.

The Cold Storage report encouraged hog market bulls. Not only did the monthly USDA Cold Storage report suggest spring pork demand was surprisingly strong, the Monday afternoon cash and wholesale reports were quite supportive of CME lean hog futures. August led the deferred contracts higher overnight. August hog futures rallied 1.22 cents to 98.35 cents/pound in early Tuesday trading, while December climbed 0.25 cents to 82.55.


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


Tube Series (TS) Conveyors

USC’s Tube Series Conveyors combine the gentleness of the signature Seed Series with the traditional stability of a tube-style conveyor, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form