Stock market gains boost grain markets at midday

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

Corn futures backed away from early highs late Wednesday morning. We suspect the release of the latest weather model results depressed soybean futures, due to suggestions of improved Argentine rainfall this weekend, which in turn dragged the corn market downward. Traders may soon begin adjusting their positions ahead of the weekly USDA Export Sales report to be released early tomorrow morning. March corn had risen 4.75 cent to $7.0975/bushel around midsession Wednesday, while December skidded 1.5 cents to $5.5475.

Soybean futures had risen rather substantially early Wednesday morning, but suffered a sharp setback around midmorning. The drop was seemingly sparked by the release of the latest weather model results, since those apparently implied improved precipitation prospects for dry Argentine soybean fields this weekend. On the other hand, South American forecasts for early March are not encouraging, so bulls are not completely abandoning the long side of the soybean pit. March beans gained 4.5 cents to $14.5225 as lunchtime approached Wednesday, while March soyoil had dipped 0.04 cents to 48.98 cents/pound, whereas March meal had gained $1.8 to $429.5/ton.

Wheat futures proved surprisingly firm in the face of fading corn and soybean quotes Wednesday. The fact that the golden grain markets have already suffered a substantial weather-related breakdown may partially explain their relative strength. Bulls may still be anticipating accelerating exports due the comparative cheapness of American products. March CBOT wheat futures had climbed 8.75 cents to $7.145/bushel late Wednesday morning, while March KCBT wheat rose 9.0 cents to $7.4175, and March MGE futures advanced 6.5 cents to $7.955.

Cattle futures appeared to surge Wednesday in belated reaction to the Monday blizzard. Those wintry conditions probably stressed feedlot cattle while limiting sales and shipments to beef packers. The impact of that weather may only have become apparent Tuesday afternoon, when beef cutout values jumped sharply. Such winter storms sometimes curtail market-ready supplies of fed cattle for weeks, which in turn can power a substantial rally. We’ll have to wait and see if that will be the case this year. April cattle climbed 0.85 cents to 130.15 cents/pound in late-morning activity, while August gained 0.37 cents to 125.92. Meanwhile, March feeder cattle ascended 0.50 cents to 141.67 cents/pound, but August was unchanged at 154.40.

Talk that pork packers may curtail their Saturday kill due to weak demand undercut CME lean hog futures again Wednesday morning. Indications of early cash weakness probably weighed upon the market as well. Bulls are probably hoping the wholesale market will follow the upward push made by fed cattle Tuesday afternoon. April hogs had slipped 0.30 cents to 81.27 cents/pound late Wednesday morning, while June dropped 0.17 cents to 91.15.


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


LAYCOTE™ Automated Coating System

The New LAYCOTE™ Automated Coating System provides coating accuracy for stand-alone coating systems and for coatings (impregnating) in automated blending ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form