Weekly Export Sales report boosts crop markets

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

Corn futures remained strong Wednesday morning, thereby seeming to reflect growing optimism about short-term export prospects. The weekly USDA Export Sales report apparently confirmed bullish expectations, with the actual sales figure, at 512,600 tonnes topping forecasts ranging between 350,000 and 450,000. It will be interesting to see if bulls can sustain the move into the weekend, since considerable optimism about demand prospects had already been built into the market. March corn surged 6.25 cents to $7.1575/bushel late Thursday morning, while December rose just 2.5 cents to $5.5625.

Soybean futures also responded well to the weekly Export Sales report. Traders were reportedly anticipating a result in the 750,000 to 1,000,000-tonne range, but the USDA stated the net for last week at 1,171,000 tonnes. Growing talk that Brazilian infrastructure problems are proving even worse than previously expected may also be boosting U.S. prices. March beans had jumped 26.25 cents to $14.8375 as lunchtime approached Thursday. Meanwhile, soybean oil apparently remained vulnerable to spillover weakness from declining Asian palm oil prices; March soyoil dipped 0.10 cents to 49.17 cents/pound, but March meal climbed $10.4 to $439.7/ton.

Wheat futures rallied on strong export news as well. The USDA stated the net sales total for last week at 524,800 tonnes, while traders were looking for something between 400,000 and 600,000 tonnes. And while that result fell within the forecast range, the fact that about 75% of the total was old crop wheat seemed particularly noteworthy. That is, importers apparently want the wheat sooner rather than later. March CBOT wheat futures had leapt 7.25 cents to $7.115/bushel by late Wednesday morning, while March KCBT wheat spiked 13.25 cents to $7.475, and March MGE futures soared 14.75 cents to $8.02.

Cattle futures were mixed to higher Thursday, with the nearby February future dropping rather significantly just before its noon expiration. The spring and summer contracts were probably responding to ideas that cash prices will rise later today or tomorrow. Recent wholesale gains are apparently reinforcing such ideas. In contrast, fall and winter futures may be anticipating normal mid-2013 weather, larger crops, lower feed costs and increased cattle on feed supplies down the road. April cattle edged upward 0.32 cents to 130.20 cents/pound in late-morning activity, while August gained 0.30 cents to 125.85. Meanwhile, March feeder cattle ascended 0.75 cents to 142.20 cents/pound, while August rallied 0.50 cents at 155.07.

Talk that the cash hog markets may be firming seemingly supported hog futures Thursday morning. Country prices have clearly dropped sharply since late January and might easily continue declining on a seasonal basis. On the other hand, the price reductions and modest increases in wholesale values have pushed pork packing margins solidly into the black. Improved packer demand would certainly be a key ingredient in a late-winter rebound. April hogs were unchanged at 81.00 cents/pound late Thursday morning, while June had risen 0.25 cents to 91.47.

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


Made of high quality 304 stainless steel, the Quickveyor is one of the strongest trailers on the market. It’s belt ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form