Crop market news seemed to undercut futures Thursday

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

EPA news sank corn futures Thursday. Although the big stock market surge seemed very supportive of the commodity sector, corn futures proved unable to sustain early gains. Ongoing harvest pressure was apparently exaggerated by talk that the EPA will bow to the reality of the blend wall and cut the 2014 ethanol production mandate. That would limit corn demand. December corn futures fell 5.25 cents to $4.3825/bushel at Thursday’s close, while May lost 5.25 cents to $4.595.

The soy complex turned mixed as Thursday passed. Talk of strong global demand for soybeans boosted prices in early trading, as did concurrent equity strength. However, beans backed away from early highs and meal turned mostly lower. Rumors of a cut to the ethanol mandate and the resulting corn reversal probably undercut the soy complex as well. November soybeans closed 0.25 cent higher at $12.88/bushel Thursday, while December soyoil surged 0.55 cents to 41.22 cents/pound, but December soymeal dipped $2.1 to $409.6/ton.

Wheat futures also suffered from spillover corn weakness. Thursday’s corn reversal apparently weighed rather heavily upon wheat prices as well. In addition, bears may have been reacting to news that Egypt had cancelled a major wheat tender due to high prices, since that country is traditionally the world’s largest wheat importer. December CBOT wheat dropped 5.0 cents to $6.855/bushel Thursday afternoon, while December KCBT wheat slid 3.5 cents to $7.555, and December MGE futures sagged 2.0 cents to $7.51.

Cattle futures seemingly followed the equity markets higher Thursday. The dearth of USDA news remains a major handicap to livestock futures trading. Moreover, it may actually increase the cattle market’s sensitivity to outside influences. For example, bulls appeared to react strongly to bullish demand ideas inspired by today’s big stock market advance. December cattle futures climbed 0.22 cents to 132.17 cents/pound at Thursday’s settlement, while April rallied 0.27 to 134.95. Meanwhile, November feeder cattle jumped 1.55 cents to 167.92 cents/pound, and January leapt 1.45 to 167.82.

Hogs may have gotten supportive wholesale news. Although the hog industry is also suffering from a lack of definitive cash and wholesale news, anticipation of seasonal weakness has weighed upon CME futures lately. Stock index gains may also have encouraged bulls, but the decisive nature of the late advance suggests pork prices firmed later in the day. December hog futures gained 0.12 cents to 86.65 cents/pound as Thursday’s session ended, while April rallied 0.35 cents to 90.05.

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

Aluminum Grain Trailers

Maurer Manufacturing offers a complete line of high quality aluminum grain trailers. Manufactured in Spencer, Iowa, Maurer aluminum grain trailers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form