The ag markets are awaiting the export sales reports

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

Thursday morning news that China had cancelled private sales of 315,000 tonnes of soybeans scheduled to be shipped in the coming weeks depressed the grain and soybean complexes. The strong advance by the U.S. dollar probably weighed upon prices as well, since such moves increase the cost of American goods faced by export buyers. Prospects for persistent corn market tightness over the short run seems to be supporting the nearby March contracts somewhat, whereas the industry is expecting a large South American harvest early in the second quarter and a big U.S. crop this fall. Traders are unlikely to push the agricultural markets very far in either direction before the release of the weekly Export Sales reports later this morning. March corn slipped 1 1/2 cents to $6.87 3/4 in early morning trading, while December dipped 2 cents to $5.85 1/2 per bushel.

The USDA announced Thursday morning that China had cancelled delivery of 315,000 tonnes of soybeans previously scheduled for the 2012-13 crop year. As one would expect, CBOT futures reacted poorly. Futures actually bounced substantially around midsession despite that news, but ended the day having fallen moderately. Still, the recovery from intra-day lows might be interpreted as signaling a forthcoming technical bounce. That may be a big reason the soy complex was decidedly mixed in overnight trading. We wouldn’t be particularly surprised by a strong positive reaction if the USDA Export Sales data proves supportive. March beans edged 1/4 cent higher, to $13.86 3/4 in overnight activity, whereas March soyoil fell 0.26 cents to 50.44 cents/pound and March meal advanced $1.2 to $405.4/ton.

The wheat markets proved even more amenable to a Thursday rebound than did their counterparts in the corn and soybean pits. The fact that current circumstances do not appear very conducive to wheat gains rendered the rise that much more impressive. Ultimately, traders seemingly concluded the recent drop was overdone and the market is now due for a significant rebound. Prices were mixed in Thursday night trading, thereby suggesting the results of the weekly Export Sales report will set the tone of trading for the balance of the week. March CBOT wheat slid 1 cent to $7.54 1/2 in early morning trade, but March KCBT wheat rose 1 cent to $8.12 ¼ and March MGE futures advanced 2 3/4 cents to $8.49 1/4 per bushel.

Cattle futures surged to fresh highs Thursday in apparent response to strong wholesale gains and to widespread anticipation of another jump in country prices for fed cattle before the weekend. Prices rose farther in overnight action despite a modest afternoon setback in beef cutout. Again, the traditional first quarter cattle rally will probably be exaggerated by extreme tightness in feedlot holdings of fed cattle, especially if Great Plains weather deteriorates during the coming weeks. February cattle seem set to begin the Friday pit session 0.12 cents higher, at 133.97 cents/pound, while the April future was last quoted 0.15 cents higher at 137.47 cents/pound.

CME lean hog futures tried to follow their live cattle counterparts sharply higher Thursday, but ended the day posting much less impressive gains. Still, the situation seems quite supportive of short-term swine prospects, especially after pork cutout jumped 1.71 cents Thursday afternoon. Cash quotes also proved quite firm. Bulls are rather obviously banking upon a sizeable seasonal advance over the next six weeks, as well hog price history implying a strong historical tendency to jump to annual highs in late spring and/or early summer. Still, the hog/pork situation isn’t nearly as tight as that for cattle and beef. February hogs gained 0.10 cents to 86.50 cents/pound overnight, while June futures inched 0.05 cents to 99.00 before the Chicago opening.

Cotton futures apparently moved in opposition to developments in the grain and soy markets Thursday and eventually closed moderately higher on the day. Ultimately, recent news has been much more supportive of the white fiber market than for its crop counterparts, which has been reflected in a moderate upward trend versus their general declines. Still, a short-term test of major support at moderately lower levels seems rather likely at this point, especially if the result of the weekly USDA Export Sales report disappoint the domestic industry. March futures slipped 0.07 cents to 75.32 cents/pound in overnight action, while December fell 0.56 cents to 78.91 cents/pound.

Prev 1 2 Next All

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

Grain Storage Systems

Behlen Grain Storage Systems offers large capacity bins with diameters from 16’ to 157’ and capacities exceeding 1,500,000 bushels. All ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form