Crop markets were steady-to-higher Wednesday morning

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


Corn futures returned to their former pattern late Wednesday morning. That is, the tightness of the old crop situation seemed to support the nearby contracts, especially after the weekly EIA report indicated strong ethanol production. However, deferred futures seemed to turn downward in response to the storm system now making its way across the eastern Corn Belt. On the other hand, traders probably still expect forthcoming dryness to boosted new crop prices in the days ahead. September corn futures rose 4.0 cents to $5.5575/bushel around midsession Wednesday, while December added 1.25 cents to $5.23.

Soybean and meal prices remained quite firm Wednesday morning. Old crop supply tightness continued dominating the nearby contracts, whereas ongoing concerns about the impact of dry summer weather apparently sparked fresh buying of the deferred contracts. The oil market resumed its struggles against weak Asian vegetable oil prices and bearish leverage arising from the crush situation. August soybean futures climbed 10.25 cents to $14.785/bushel just before lunchtime Wednesday, while August soymeal advanced $5.8 to $454.7/ton, and August soybean oil rose 0.07 cents to 47.09 cents/pound.

Wheat traders apparently think recent gains will strangle Chinese buying. Late news of Chinese buying and hopes for much more of the same have rather obviously boosted wheat futures lately. However, the industry is now reportedly worried that the bullish response will discourage Asian buyers. Those concerns seemingly outweighed the bullish impact of persistently dry weather forecasts over the western Plains. September CBOT wheat edged upward 0.75 cents to $6.7825/bushel in late Wednesday morning activity, while September KCBT wheat inched up 0.75 cent to $7.045, and September MGE futures were slipped 0.25 cents to $7.685.

Nearby cattle futures led the complex modestly lower Wednesday morning. That may indicate bullish traders are giving up on previously held ideas that the cash market had reached its summer low. Tuesday afternoon slippage in choice cutout values may have persuaded them that packers will prove able to keep spot prices under downward pressure. Feeders bounced from early lows after corn prices set back. August cattle declined 0.55 cents to 122.17 cents/pound around lunchtime Wednesday, while December skidded 0.22 cents to 128.45. August feeder futures dropped 0.37 cents to 150.77 cents/pound, and November dipped 0.07 cents to 156.10.

Hog futures apparently bounced form technical support Wednesday. After testing support associated with its 40-day moving average Tuesday, most-active August lean hog futures moved higher this morning. The fact that the CME lean hog index remains at a substantial premium to Chicago prices almost surely exaggerated the bounce. August hog futures rallied 0.62 cents to 95.80 cents/pound around midsession Wednesday, while the December contract rebounded 0.77 cents to 81.87.


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


SST Imagery Services

In conjunction with third-party imagery partners, SST Summit Professional users will soon be able to order imagery products on-demand. SST ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form