Grain, livestock markets mixed again Tuesday

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

After performing surprisingly well Monday, corn futures accelerated upward Tuesday. There was no obvious bullish news, so wire service reports cited cash market firmness and signs of improving demand as powering the market upward. Technicians may have been buying as well, especially with the nearby March contract having pushed above chart resistance associated with the psychologically important $7.00/bushel level. March corn ended Tuesday having surged 11.5 cents to $7.05/bushel, while December gained 6.5 cents to $5.5625.

Soybean futures proved quite firm Tuesday. The market seemed set to continue its recent slide, with talk of improving Argentine weather, the progressing Brazilian harvest and concerns about potential cancelations of Chinese orders weighing upon prices. No news item obviously powered the bounce from early lows, but suggestions that tightening farmer supplies played a role gained considerable traction. Still, one has to wonder if soybean rallies can be sustained with the Brazilian harvest hitting its stride. March beans lost 3.50 cents to $14.4775 at their Tuesday afternoon close, while March soyoil remained under pressure from the palm oil market; that contract plummeted 1.11 cents to 49.02 cents/pound, whereas March meal had gained $2.1 to $427.7/ton.

Strength spilling over from the corn pit also seemed to boost the wheat markets Tuesday. Given the bearish implications of the ongoing winter storm and the moisture it is providing to large areas of the Great Plains, the wheat bounce was impressive. U.S. producer insistence upon better prices may be supporting the market, but the bounce may also have a significant technical component, with the March Chicago contract closing above the $7.00/bushel level seeming especially noteworthy. March CBOT wheat futures closed 6.5 cents higher at $7.0575/bushel Tuesday afternoon, while March KCBT wheat edged 1.25 cents upward to $7.3275, and March MGE futures advanced 3.0 cents to $7.89.

The blizzard that hit the Southern Plains Monday greatly stressed feedlot cattle in that region, which seemed to belatedly push cattle futures higher Tuesday afternoon. Poor feedlot conditions can power major winter price gains, but animals may already be adapted to the cold weather at this point. The possibility that the budget sequester will force packers to slow operations (due to the absence of Federal inspectors) may be weighing upon the market. April cattle had surged 0.87 cents to 129.30 cents/pound at the end of the CME open outcry session, while August gained 0.27 cents to 125.55. Meanwhile, March feeder cattle climbed 0.37 cents to 141.17 cents/pound, and August rose 0.25 cents to 154.40.

Lean hog futures were mixed Tuesday, with the nearby April future seeming to reflect short-term pessimism while the deferred contracts anticipated seasonal strength through spring and summer. The cash markets were mixed, whereas the ongoing blizzard seemed to disrupt the release of wholesale beef and pork information. We are guardedly optimistic about the potential for a short-term rebound, but such ideas could go out the window if the Federal government sequester forces slowdowns upon the packing industry. April hogs dipped 0.33 cents to 81.57 cents/pound at the Tuesday close, while June rose 0.27 cents to 91.32.


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


X-TENDED REACH GRAIN CARTS

YOUR BEST HARVEST IS NOW WITHIN REACH J&M introduces their patented line of X-tended Reach grain carts, featuring a frontfolding single ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form