Grains close the week on a weak note

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

Corn futures were lower on the close on Friday, but the market clawed back from sharply lower values. It was First Notice Day for the December contract. Many traders were not expecting any delivery notices to be posted against the December contract. Instead, deliveries totaled 246 contracts. Additionally, news of heavy notices for wheat weighed on that market. Both markets have experienced recent rallies on talk of increased demand. The large notices somewhat puncture that popular view. At the close, the December contract was off 3 1/2 cents at $7.48, March was off 6 cents at $7.52 3/4, and December 2013 closed off 3/4 cent at $6.35 1/2.

Soybean prices were lower giving back a portion of recent gains. Some of the soybean weakness may be linked to strong selling pressure in the corn and wheat markets today on news of hefty First Notice Day deliveries. Soybeans don’t trade a December contract, so there is no comparison to be made for bean deliveries. The deliveries in the other grains raised questions about export demand in general, which was disappointing in the weekly export sales report. Further, there are reports overnight of China beginning to contract beans from Brazil. At the close, January beans were off 9 1/4 cents at $14.38 3/4 while November 2013 lost 4 3/4 cents at $13.04 1/2.

Wheat prices closed double-digits lower Friday and near the lows of the day. A combination of factors was at work. First the International Grains Council came out after Thursday’s close with its first estimate of global wheat acreage for 2013. It put it 2.2% higher than in 2012 and at the highest level in 15 years. Then there was word from India that more than doubled the amount of reserve wheat that country would put on the export market, now offering 4.5 million tonnes instead of just 2 million. And of course, being a Friday, there was profit-taking activity by speculators after strong gains this week. At the close, CBOT March wheat was down 22 cents at $8.63 ½; KCBT March was down 21 ¾ at $9.13 ¼ and MGE March was down 14 ½ at $9.36 ¾.

Live cattle and feeder cattle futures settled lower on Friday. Prices were under pressure all day as some traders closed out positions ahead of the end of the month and the lower prices triggered sell stops under the market. The cash cattle market remained quite through at least the middle of the day Friday and feedlot operators were holding on to offers a little above those received last week. The February live cattle contract settled at $130.40, down $1.70. June was $1.15 lower at $130.78. January feeder cattle prices declined by $1.13 and settled at $145.63.

Lean hog futures settled mixed on Friday. Prices were lower across the board through much of the session but there was a minor rally late in the day. Reports from cash markets showed that prices were continuing to rise, with the national average price close to $80. The pork cutout was down on Thursday, but slaughter on Saturday is expected to be large, probably near 250,000 head. The February contract settled down 20 cents at $86.93, but June managed a 25 cents gain to a new high of $101.53.


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...

Related Articles

No matching related articles at this time.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Kinze 1500 Grain Cart

The Kinze 1500 Grain Cart is engineered for speed and reliability required of custom harvesters. Load up to 1500 bushels ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form