Crop markets once again seemed to stall last night

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

Corn futures are beginning Wednesday rather weakly. Corn futures seemed to be slipping along with soybeans in early Wednesday trading. That probably reflected talk of rising South American bean production. Increased optimism about South American corn harvests may also be having an effect. March corn dipped 1.25 cents to $4.3075/bushel in pre-dawn Wednesday action, while May slipped 1.5 to $4.365.

Talk of rising South American production weighed on the soy complex Tuesday night. Traders in the soy complex are rather obviously anticipating downward price pressure from the incipient South American harvest. The latest report from the USDA’s Brazilian attaché added to selling, when it unofficially boosted the forecast harvest 500,000 tonnes to 89.5 million. The report also raised predicted exports 2.0 million to 46 million tonnes. March soybeans edged down 1.5 cents to $12.84/bushel early Wednesday morning, while March soyoil sagged 0.11 cents to 37.29 cents/pound and March soymeal lost $0.1 to $428.5/ton.

Warming weather forecasts depressed the wheat markets. Recent talk of strong global export buying has diminished in the wake of Egypt’s Tuesday tender. Thus, predictions for warming weather over much of the U.S. seemingly has traders again looking at the short side of the market. March CBOT wheat futures slid 1.25 cents to $5.6475/bushel in early Wednesday trading, while March KCBT wheat futures sank 3.0 cent to $6.19, and March MWE futures skidded 2.25 to $6.0275.

Tumbling beef prices are depressing cattle futures. Traders have likely been hoping for fresh gains in cash cattle prices later this week. However, Tuesday afternoon beef news probably ended those hopes, since cutout values dropped sharply. Cattle and feeders slumped in response. February cattle futures tumbled 0.42 cents to 142.12 cents/pound Tuesday night, while the April contract dropped 0.37 cents to 139.97. Meanwhile, March feeder cattle fell 0.57 cents to 167.80 cents/pound, and May declined 0.70 to 168.82.

Late Tuesday reports of cash firmness are supporting CME hog values. Although noon Tuesday wholesale news was good, the cash markets seemed to fall rather sharply. However, afternoon country reports indicated prices were stronger than previously thought. That news apparently boosted futures somewhat in overnight action. February hogs advanced 0.35 cents to 85.62 cents/pound early Wednesday morning, and June added 0.05 to 102.80.

Stock index gains may have boosted cotton futures overnight. Equity index rose strongly Tuesday afternoon after Turkey’s central bank sharply increased that country’s interest rates. The idea that these events herald improved economic activity and apparel demand may have sparked cotton buying as well, although technical buying probably played a big role in the rise as well. March cotton rose 0.07 cents to 84.420 cents/pound just after sunrise (EST) Wednesday, while July cotton gained 0.12 to 85.05.

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

Smooth Wall Grain Bins

Meridian’s SmoothWall bins are the ultimate storage bins, used to handle and store fertilizer, grain, feed and seed, and extend ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form