Looming USDA reports probably stifled ag market action Wednesday

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

Corn futures returned to their former pattern Wednesday. That is, the tightness of the old crop situation seemed to support the nearby contracts, especially after the weekly EIA report indicated strong ethanol production. However, deferred futures seemingly turned downward in response to the storm system now making its way across the eastern Corn Belt. Price movements were probably limited by position squaring ahead of the Thursday morning USDA WASDE report. September corn futures closed 2.0 cents higher at $5.54/bushel Wednesday afternoon, while December slipped 0.25 cent to $5.215.

The soy complex was decidedly mixed at the Wednesday close. Softening cash values apparently undercut nearby futures late in the day. Conversely, anticipation of summerlike conditions over the Corn Belt later this month seemingly boosted new crop prices. August soybean futures sank 3.5 cents to $14.6475/bushel at its Wednesday afternoon settlement, while August soymeal dipped $0.2 to $449.7/ton, and August soybean oil was unchanged at 47.02 cents/pound.

Wheat traders were apparently reluctant to push the markets with USDA reports looming Thursday. Recent news of Chinese buying and hopes for much more of the same probably supported wheat futures, as did talk of forecast dryness over the northern Plains. However, traders were seemingly unwilling to push prices far in either direction ahead of the weekly Export Sales and monthly WASDE reports due from the USDA Thursday morning. September CBOT wheat edged upward 1.5 cents to $6.79/bushel as the Wednesday trading session ended, while September KCBT wheat gained 4.25 cent to $7.09, and September MGE futures were unchanged at $7.6875.

Nearby cattle futures led the complex modestly lower Wednesday. That may mean bullish traders were giving up on previously held ideas that the cash market had reached its summer low. Ongoing wholesale losses may have persuaded them that packers will prove able to keep spot prices under downward pressure. August cattle declined 0.65 cents to 122.07 cents/pound at their Wednesday settlement, while December skidded 0.22 cents to 128.45. August feeder futures dropped 0.60 cents to 150.55 cents/pound, and November sank 0.17 cents to 156.00.

Hog futures apparently bounced form technical support Wednesday. After testing support associated with their 40-day moving average Tuesday, most-active August lean hog futures moved significantly higher. The fact that the CME lean hog index remains at a substantial premium to Chicago prices almost surely exaggerated the bounce. August hog futures settled 0.52 cents higher at 95.70 cents/pound Wednesday afternoon, while the December contract rebounded 0.95 cents to 82.05.

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

Portable Conveyors

Convey-all portable conveyors are designed to handle your crops gently and efficiently. We offer an extensive line of high capacity ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form