Grain markets mixed on Wednesday after WASDE report

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

Corn futures fluctuated wildly just after the WASDE report was released Wednesday, but ultimately sustained the modest gains posted Tuesday night. The initial post-report price surge apparently resulted from a surprisingly low U.S. stocks estimate for the end of the current crop year. Conversely, the USDA also boosted its forecast for global corn stockpiles later this year, which dragged prices back down. News that U.S. ethanol production jumped last week probably powered the late rise. May corn settled 4.25 cents higher at $6.49/bushel Wednesday, while December rose 2.75 cents to $5.43.

The soybean market rallied initially in response to WASDE results indicating larger U.S. crushings and exports during the months ahead. However, prices turned decidedly lower soon thereafter, since the USDA forecast global soybean carryout well above pre-report estimates. May soybeans dipped 3.0 cents to $13.9275/bushel at their Wednesday close, while May soyoil gained 0.07 cents to 50.03 cents/pound, and May meal edged $3.6 lower to $392.9/ton.

Wheat futures also swung rather dramatically in reaction to the USDA WASDE report. The immediate rise probably marked spillover strength from the corn and soy markets, due in part to the fact that the U.S. wheat stocks figure virtually matched pre-report forecasts. But having the USDA also boost its predicted global carryout above all pre-report estimates apparently depressed prices May CBOT wheat futures dropped 12.0 cents to $6.9675/bushel to end their Wednesday session, while May KCBT wheat dove 16.5 cents to $7.30, and May MGE futures tumbled 15.25 cents to $7.845.

Cattle futures were mixed to lower Wednesday morning. Early trader concerns about disappointing cash prices were fulfilled by late morning, when wire service reports indicated that country prices had dipped one cent/pound to the 127.00 cent/pound area. Given the time of year, with cattle and beef supplies growing seasonally, they may believe the 128-cent prices posted last week will represent their spring 2013 peak. Futures turned sharply lower in the wake of the cash news. June cattle plunged 1.70 cents to 120.00 cents/pound at their Wednesday close, while December sank 1.82 cents to 126.65. May feeder cattle futures plummeted 2.42 cents to 142.32 cents/pound, and August crashed 2.40 cents to 149.17.

Ongoing cash firmness seemed to boost hog futures again Wednesday; afternoon reports stated western Corn Belt prices almost two cents higher on the day. However, CME prices backed away from their early highs around mid-morning, which probably reflected concurrent weakness in the cattle pit. The lightly traded May hog contract advanced 0.45 cents to 87.55 cents/pound at its Wednesday afternoon settlement, while the June contract slid 0.35 cents to 89.50.

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

1325 Bushel Grain Cart

Equipped with a 22” computer balanced auger with 5/16” flighting,the unloading speed is 50% faster than smaller grain carts with ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form