Crop prices are down, livestock prices up Tuesday morning

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

Corn prices are 2 to 5 cents lower early Tuesday. Pressure on the corn market is coming in part from spillover selling from the soybean market. The March corn futures is testing chart support at $7.18 and the next level of support is near $6.80. The forecast for a significant winter storm moving through the Midwest later this week bringing snow to the region has contributed to the pressure on prices so far this week. The March contract was recently at $7.19 ½.

Soybean prices are a5 to 20 cents lower early Tuesday morning. Weather conditions are improving in South America growing regions and the prospect for record crops down there is putting pressure on U.S. soybean futures prices. The nearby contract traded above $15 on Monday but has now dropped back to below $14.80. There was some carryover selling following the weak prices before the settling price was established on Monday. The market is still trending up, but developments so far this week are troubling.

Wheat prices are generally 2 to 5 cents lower Tuesday morning. Wheat prices are also being impacted by the sell-off in soybeans. The approaching winter storm that is expected to bring snow to some of the winter wheat growing area is also bearish for wheat prices. After falling by nearly $1 so far in December, the wheat market is technically oversold. That could allow for a modest price bounce ahead of end-of-month, end-of-quarter, end-of-year close-out of positions.

Live cattle and feeder cattle contracts are higher early Tuesday. Live cattle futures prices posted big gains on Monday with the April and June contracts hitting new highs. There is some concern about the winter storms expected over the next several days, which could slow weight gains and disrupt transportation. There has been now activity in the cash market, but sellers have raised their asking prices while packer margins remain very poor. The slaughter pace is expected to be down this week and even lighter next week. But so far the light slaughter levels have not led to any real increase in beef prices.

Lean hog futures are up 20 cents top 40 cents early Tuesday. Cash hog prices fell on Monday, but so did the trade volume. Packers need to buy more hogs and may have to raise bids to get it done. But processing margins are poor and packers may decide to reduce slaughter levels. Retail demand for pork is generally weak through the end of the year but production will be reduced due to the holidays over the next two weeks. The quarterly Hogs and Pigs report will be released December 28 and we could see significant position evening ahead of the report.

Cotton prices are down 20 to 40 points Tuesday morning. Cotton futures are down slightly in early morning trade and a quiet session is expected for the day. The March contract has been surging higher over the past month, with the March contract closing at the highest level since September 20 on Monday. Tuesday is expected to see consolidation near Monday’s settling price. The recent surge in cotton prices reflects good export demand. Prices may continue to improve if we see another good week of export sales.

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


Meridian’s conveyors deliver seed with unmatched versatility. Meridian’s transport conveyors are manufactured with heavy-duty, fully enclosed construction. Meridian’s cross cleated ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form