Livestock futures outperformed the crop markets Tuesday night

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

Corn futures are testing support Wednesday morning. The corn market pushed above chart support last week, but reacted weakly to bullish USDA news Monday. Thus, the subsequent slide has not been terribly surprising. Nearby futures are now testing technical support associated with short-term moving averages. Tuesday night’s general lack of news is contributing to the technical dominance. March corn slid 2.0 cents to $4.395/bushel early Wednesday morning, while May dipped 2.25 to $4.45.

Soybeans seem to be consolidating Tuesday’s advance. Soybean futures appeared doomed to a substantial decline after Monday’s failed breakout attempt. However, cash strength inspired yesterday’s strong rebound. Prices stabilized overnight, thereby suggesting the market currently lacks the impetus for a decisive move higher. Soyoil futures rose in concert with Asian palm strength, but that seemingly did little to boost the beans. March soybeans skidded 1.25 cents to $13.335/bushel Tuesday night, while March soyoil rose 0.11 cents to 38.96 cents/pound, and March soymeal sagged $0.8 to $448.4/ton.

Wheat futures were mostly lower overnight. The wheat markets exhibited varying degrees of strength yesterday, with weather and transport concerns boosting Kansas City and Minneapolis prices, respectively. Chicago futures also rose modestly, thereby seemingly reflecting general fundamental strength. They appeared to be consolidating those gains Tuesday night, with prices moving little in pre-dawn trading. March CBOT wheat futures inched down 0.25 cent to $5.90/bushel in early Wednesday action, while March KCBT wheat futures dipped 1.75 cents to $6.6375, and March MWE futures slumped 0.25 to $6.61.

Cash optimism continues supporting cattle futures. CME cattle futures surged in response to increased packer bids for Southern Plains animals Tuesday. Prices rose farther overnight, thereby implying traders expect a strong rebound from last week’s drop. Bears probably gained hope from Tuesday afternoon wholesale losses. April cattle futures climbed 0.50 cents to 141.67 cents/pound in pre-dawn Wednesday trading, while August lifted 0.22 cents to 131.25. Meanwhile, March feeder cattle surged 0.57 cents to 169.35 cents/pound, and May jumped 0.60 to 170.95.

Hog futures appeared to follow cattle higher Wednesday morning. The cash hog markets reportedly rose slightly Tuesday, while wholesale pork slipped. Those developments at least partially explained Tuesday’s futures weakness. Nevertheless, CME prices bounced moderately overnight, which may have reflected spillover support from the cattle market. April hogs advanced 0.35 cents to 94.52 cents/pound as Wednesday dawned over Chicago, while June rallied 0.30 to 104.97.

The cotton market is trying to sustain Tuesday’s strong close. Financial market strength apparently played a significant role in boosting cotton futures to six-month highs yesterday, although talk of tightening U.S. supplies almost surely encouraged buying as well. The ICE market proved rather mixed overnight, as traders evaluated the situation. March cotton dipped 0.02 cents to 88.65 cents/pound just after sunrise (EST) Wednesday, while July cotton tumbled 0.36 lower to 87.85.

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

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