Resurgent bean, cattle futures boost the ag complex Monday

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

Weather forecasts depressed corn prices Monday. A wide planting window this week seems likely to enable most corn farmers to complete seedings in short order. Moreover, moisture conditions seem quite favorable for early plant growth. Thus, it wasn’t terribly surprising to see yellow grain prices decline in today’s session. July corn dipped 6.25 cents to $4.7725/bushel at Monday’s close, while December slid 5.25 cents to $4.7575.

The soy complex rebounded Monday. The nearby July bean and meal contracts appeared to follow grain prices lower in Sunday night action, as did soyoil futures in following Asian palm values downward. However, beans and meal turned sharply higher by late morning, which probably reflected firm demand implied by the Export Inspections report. July soybeans surged 20.25 cents to $14.8525/bushel at their Monday settlement, while July soyoil tumbled 0.33 cents to 40.42 cents/pound, and July soymeal advanced $10.3 to $490.5/ton.

Bargain hunters seemed to boost the wheat markets. The Black Sea situation seems less tense to start this week, thereby causing U.S. traders to refocus upon bearish global wheat fundamentals and favorable U.S. spring weather. However, bears couldn’t force a follow-through drop, which in turn appeared to spur short-covering and bargain hunting later in the session. July CBOT wheat futures inched up 0.25 cent to $6.745/bushel in late-Monday trading, while July KCBT wheat futures rose 1.0 cent to $7.6875, but July MWE futures edged down 0.5 cent to $7.3875.

Beef gains may have triggered fund buying of cattle futures. Last Friday’s monthly USDA Cattle on Feed report looked generally neutral, but wholesale prices rose slightly. Beef quotes rose again at midsession Monday, which may have triggered a wave of buying from trading funds. Whatever the underlying cause, Monday’s CME advance was impressive. June cattle jumped 1.50 cents to 139.40 cents/pound as Monday’s CME session ended, while December climbed 1.67 to 146.45. Meanwhile, August feeder cattle soared 2.87 cents to 196.20 cents/pound, and October leapt 3.00 cents to 197.37.

Cash hog losses apparently limited concurrent CME gains. Although pork cutouts rose modestly last Friday and again this morning, cash hog quotes were suffering similar losses. Substantial premiums already built into CME futures probably limited buying, but it seemed obvious that strength spilling over from the cattle pit was also boosting hogs. June hog futures rallied 0.45 cents to 119.37 cents/pound in late-Monday action, and December gained 0.57 cents to 94.35.


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


LPV Seed Treater

The LPV Seed Treater has set a new standard boasting three configurable weighing methods for any-sized operation, a standard 42” ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form