Crop markets start week on a mixed note

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

Corn sustained last Friday’s post-report advance. Last Friday’s USDA reports proved bullish for corn, since the USDA cut its estimate of the 2013 U.S. crop and posted stock totals well below forecasts. Prices continued rising Sunday night, with likely support from news that South Korea had bought 137,000 tonnes rejected by China. March corn futures edged up 1.25 cents to $4.34/bushel early Monday morning, while May added 1.0 to $4.4175/bushel.

The soy complex remained weak after failing last Friday. Friday’s USDA reports had mixed-to-supportive implications for the soy outlook. However, soybean futures failed at major chart resistance soon after the data were released and closed only modestly higher on the day. The late slide seemed to continue in early-week trading, particularly with the Asian palm market apparently weighing on the whole complex. March soybeans slid 6.5 cents to $12.72/bushel in early Monday trading, while March soyoil dipped 0.13 cents to 38.10 cents/pound, and March soymeal lost $3.4 to $410.2/ton.

The wheat markets rebounded from Friday’s lows in early Monday action. The wheat markets reacted badly to last Friday’s data indicating the December stocks total and the 2013/14 carryout figure topped expectations. However, pragmatic considerations and news that Egypt is buying 55,000 tonnes of U.S. grain for February delivery seem to supporting prices to start this week. March CBOT wheat futures bounced 5.5 cents to $5.745/bushel in pre-dawn action Monday, while March KCBT wheat futures rose 3.25 cents to $6.2925, and March MWE futures gained 2.5 to $6.23.

Record prices supported cattle futures Friday. After proving surprisingly weak Thursday, the cattle market seemed set to resume its late-2013 rally Friday. Beef cutout values jumped to record highs and were followed to a fresh all-time peak by the cash markets as the work week concluded. This seems to bode well for this week’s trading. February cattle futures advanced 0.15 cents to 136.70 cents/pound at their Friday settlement, and April futures gained 0.10 to 137.35. Meanwhile, March feeder cattle futures reversed downward by 1.17 cents to 167.65 cents/pound, and May sank 1.02 to 168.90.

Hog futures also moved up last Friday. Ideas that the hog market is set for a technical and seasonal rally apparently supported CME hog prices as the week’s trading ended. Thursday’s late wholesale strength and mixed-to-firm cash quotes may have encouraged bulls looking for a surge into mid-February. Record cattle and beef prices probably helped the bullish cause as well. February hogs surged 0.57 cents to 85.82 cents/pound as CME pit trading ended Friday, while June ran up 0.30 to 100.90.

Cotton proved surprisingly firm to start the week. Last Friday’s USDA data was somewhat bearish for the cotton outlook, thereby dragging the ICE market downward. However, it’s rather apparent that bullish traders aren’t ready to throw in the towel just yet, since futures rebounded modestly Sunday night. The rise seems technical in nature, especially in light of news that China’s purchases for its massive reserve hit a two-month low last week. March cotton climbed 0.36 cents to 82.95 cents/pound to start the week, and July cotton added 0.43 cents to 82.90.


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


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