Monday's late Crop Progress report seemed mostly bearish

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

Outstanding condition ratings are weighing on corn futures. The USDA’s Monday afternoon Crop Progress report stated corn plantings mostly done and stated the initial condition rating for 2014 at 76% good-excellent, whereas pre-report estimates averaged about 70%. The huge production implied if summer weather cooperates depressed futures once again. July corn sank 3.75 cents to $4.6175/bushel Monday night, while December dipped 3.5 cents to $4.55.

The Crop Progress report sparked soy complex selling as well. Last week’s favorable weather enabled farmers to plant soybeans at a torrid pace, with the current completion rate at 78% topping both the five and 10-year averages for early June. That almost surely triggered new-crop CBOT sales, but doesn’t explain the bearish leadership of nearby July. One has to suspect that talk of increased imports and/or reduced exports is playing a role in the old crop losses. July soybeans fell 6.25 cents to $14.9425/bushel early Tuesday morning, while July soyoil dropped 0.21 cents to 38.10 cents/pound, and July soymeal sagged $1.3 to $504.7/ton.

The Crop Progress report sparked soy complex selling as well. Last week’s favorable weather enabled farmers to plant soybeans at a torrid pace, with the current completion rate at 78% topping both the five and 10-year averages for early June. That almost surely triggered new-crop CBOT sales, but doesn’t explain the bearish leadership of nearby July. One has to suspect that talk of increased imports and/or reduced exports is playing a role in the old crop losses. July soybeans fell 6.25 cents to $14.9425/bushel early Tuesday morning, while July soyoil dropped 0.21 cents to 38.10 cents/pound, and July soymeal sagged $1.3 to $504.7/ton.

Cattle futures showed surprising strength overnight. CME traders seemingly expect the cattle and beef complex to hold up well this week, since cattle futures built upon Monday’s modest gains last night. The rise came despite afternoon news of beef price slippage. Bulls may believe traditional early-month buying by grocers will support cash prices over the next two weeks. August cattle advanced 0.27 cents to 139.40 cents/pound as Tuesday dawned over Chicago, while December added 0.20 cents to 146.27. Meanwhile, August feeder cattle climbed 0.25 cents to 197.82 cents/pound, and October rose 0.10 to 199.00.

Monday night hog strength was surprisingly muted. CME swine futures climbed rather strongly Monday, which seemingly reflected a big midday surge in wholesale pork values. That was confirmed later in the day, while cash hog quotes posted modest gains as well. However, only the nearby June contract was able to sustain an overnight advance, thereby suggesting bullish traders aren’t very confident at this point. August hog futures actually declined 0.20 cents to 125.75 cents/pound in early Tuesday trading, and December tumbled 0.55 to 94.70.

Technical factors seemed to overrule other cotton considerations last night. The Crop Progress report indicated that U.S. cotton plantings were 74% complete Sunday. The subsequent futures advance suggests ICE traders were expecting much more progress. However, having the nearby July future smash through its 10-day moving average probably exaggerated the overnight reaction. It now looks set to test its 20-day MA. July cotton jumped 1.50 cents to 87.98 cents/pound in Monday night action, while December cotton gained 0.33 to 78.39.


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 

Name
e-Mail (required)
Location

Comment:

characters left


Blend and Bulk Tower Systems

Waconia Towers provide speed, efficiency and reliability that only gravity-fed systems can offer. Towers are available with up to 300 ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form