Crop markets fell in reaction to the Friday USDA reports

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

Corn futures declined significantly prior to the midday release of the USDA WASDE and Crop Production reports, which probably reflected early U.S. dollar gains. The reports seemed somewhat bearish for the corn market, since they forecast the carryout for both 2012/13 and 2013/14 slightly above average industry predictions. July corn fell 12.5 cents to $6.3425/bushel at its Friday settlement, while December dropped 12.0 cents to $5.295.

Prices across the soy complex were mixed Friday morning. The midsession WASDE and Crop Production reports changed that somewhat, with bean and meal futures moving modestly lower in concert with the grain markets. In contract, oil futures staged a modest rally. As with the corn forecasts, 2012/13 and 2013/14 soybean carryout stocks were projected at levels above generally anticipated levels. July soybean futures had fallen 9.75 cents to $13.99/bushel as trading ended for the week Friday afternoon, whereas July soyoil rose 0.01 cents to 49.23 cents/pound, and July soybean meal slid $6.4 to $406.8/ton.

Wheat futures came under considerable downward pressure Friday morning, as traders reacted badly to the U.S. dollar advance. The USDA WASDE and Crop Production data published later in the morning were also seen as bearish, since a predicted record for global production implied a big surge in global supplies down the road. July CBOT wheat futures dove 19.25 cents to $7.0425/bushel at its Friday close, while July KCBT wheat plunged 20.75 cents to $7.5875, and July MGE futures tumbled 16.75 cents to $8.0875.

News of surprising cash market weakness undercut cattle futures despite record-high beef prices this week. Traders obviously expect much more spot market slippage over the next few weeks, which largely explains the CME weakness seen Friday. Live cattle futures did not react significantly to the USDA reports. June cattle closed 0.10 cents lower at 120.45 cents/pound Friday afternoon, while December bounced 0.37 cents to 125.67. Feeder cattle futures surged in response to the prospect of lower feed costs during the coming months. August jumped 0.65 cents to 146.62 cents/pound, while November moved 0.92 cents higher to 151.92.

Chicago hog prices remained under pressure Friday morning despite recent cash and wholesale strength. The futures weakness almost surely reflects the growing belief that the early-spring hog/pork rally has run its course. As with cattle futures, the swine market also responded little to the USDA reports. June hog futures edged 0.07 cents lower to 90.50 cents/pound to end the week, while December futures lost 0.40 cents to 77.25.

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