Grain markets generally weak on Monday

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

Weather and export news weighed upon grain and soy markets Monday. Weekend forecasts indicate central U.S. weather could improve substantially next week, thereby potentially setting the stage for a big surge in plantings in early May. This seems particularly important for the corn crop. Chinese officials also reported Sunday night that its corn imports suffered a 50% annual decline during March. The weekly Export Inspections report largely met expectations for corn. May corn dipped 5.5 cents to $6.4575/bushel at the Monday close, while December fell 14.5 cents to $5.325.

Improved Corn Belt forecasts for next week also weighed upon soybean futures Monday, since a quick surge in corn plantings could translate into timely soybean plantings and increased production per acre at harvest. The reported 20% annual drop in Chinese soybean imports during March tended to undercut prices as well. Weekly export inspections fell short of forecasts, which did not help the bullish cause. May soybeans sank 10.25 cents to $14.1725/bushel Monday afternoon, while May soyoil dove 0.54 cents to 48.62 cents/pound, and May soybean meal slipped $2.1 to $410.0/ton.

Ideas that improving weather will boost production prospects for the U.S. wheat crop also weighed upon the markets Monday. That is, warmer and drier conditions could accelerate spring wheat plantings, while recent moisture may have raised the potential for the growing winter wheat crop. Some suggest potential frost damage is less severe. In addition, China reportedly imported just 54% as much wheat during March as it did one year ago. May CBOT wheat futures closed 6.75 cents lower at $7.0225/bushel Tuesday, while May KCBT wheat tumbled 6.5 cents to $7.395 and May MGE futures lost 6.75 cents to $8.1875.

As expected, cattle futures reacted poorly to the monthly USDA Cattle on Feed report published last Friday afternoon. And while firm choice beef prices seemed to offer some support, especially with warmer weather potentially boosting consumer demand, the market remained relatively weak throughout the CME session. The afternoon USDA Cold Storage report stated March 31 beef stocks at 513.2 million pounds, slightly above expectations; that may bode rather ill for the Tuesday morning opening. June cattle slid 0.47 cents to 120.82 cents/pound in late Monday morning action, while December declined 0.45 cents to 126.15. May feeder cattle futures skidded 0.60 cents to 138.60 cents/pound, and August edged downward 0.07 cents to 145.97.

Hopes for a seasonal demand surge did not seem very apparent in the hog pit Monday morning, with spring and summer futures sustaining moderate losses. The fact that they are trading at substantial premiums to the CME lean hog index probably accounts for a sizeable portion of their recent decline. However, the strong result of the midday pork report may have set the stage for gains during the days just ahead. May hog futures settled down 0.27 cents to 87.57 cents/pound Monday afternoon, while the June contract lost 0.65 cents to 89.62.

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