Strong equities seemingly support commodities Thursday morning

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

Corn futures couldn’t sustain early gains. Although the big stock market surge seemed very supportive of the commodity sector, corn futures proved a bearish exception Thursday morning. Ongoing harvest pressure was apparently exaggerated by talk that the EPA will bow to the reality of the blend wall and cut the 2014 ethanol production mandate. That would limit corn demand. December corn futures fell 5.35 cents to $4.3825/bushel around midsession Thursday, while May lost 5.25 cents to $4.595.

The soy complex turned mixed late Thursday morning. Talk of strong global demand for soybeans boosted prices in early trading, as did concurrent equity strength. However, beans backed away from early highs and meal turned mostly lower. Talk of a cut to the ethanol mandate and the resulting corn reversal probably undercut the soy complex as well. November soybeans remained 3.5 cents higher at $12.915/bushel just before lunchtime Thursday, while December soyoil surged 0.44 cents to 41.11 cents/pound, but December soymeal dipped $0.5 to $411.2/ton.

Wheat futures also suffered from spillover corn weakness. The Thursday morning corn reversal apparently weighed rather heavily upon wheat prices as well. Bears may also have been reacting to news that Egypt had cancelled a major wheat tender due to high prices, since that country is traditionally the world’s largest wheat importer. December CBOT wheat slid 1.5 cents to $6.89/bushel late Thursday morning, while December KCBT wheat was steady at $7.59, whereas December MGE futures inched up 1.5 cent to $7.545.

Cattle futures seemingly followed the equity markets higher. The dearth of USDA news remains a major handicap to livestock futures trading. Moreover, it may actually increase the cattle market’s sensitivity to outside influences. For example, bulls appeared to react well to bullish demand ideas inspired by today’s big stock market advance. December cattle futures climbed 0.27 cents to 132.22 cents/pound around Thursday’s lunch hour, while April rallied 0.12 to 134.80. Meanwhile, November feeder cattle jumped 1.07 cents to 167.45 cents/pound, and January surged 0.97 to 167.35.

Hogs may be suffering from seasonal pressure. Although the hog industry is also suffering from a lack of definitive cash and wholesale news, traders aren’t very optimistic at this point. That is, the cash and wholesale market traditionally prove quite weak at this time of year, because a seasonal production surge usually overwhelms diminished pork demand. Market talk is reportedly pointing in that direction at this point. December hog futures sank 0.20 cents to 86.32 cents/pound in late Thursday morning action, while April sagged 0.02 cents to 89.67.

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

Kinze 1500 Grain Cart

The Kinze 1500 Grain Cart is engineered for speed and reliability required of custom harvesters. Load up to 1500 bushels ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form