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Ag markets moved mostly lower again Wednesday morning

Doane Advisory Services | Hagadone News Network | UPDATED 10 years, 9 months AGO
by Doane Advisory Services
| August 13, 2014 8:30 AM

Corn futures resumed their post-report decline Wednesday morning. Tuesday’s USDA reports implied record U.S. corn yield and harvest totals this fall. Futures reacted poorly to the news and couldn’t sustain overnight efforts to stabilize. Indeed, early morning announcements of fresh export sales also failed to push prices higher. Traders think the USDA forecasts are too low. September corn dipped 1.75 cents to $3.5675/bushel late Wednesday morning, while December lost 1.25 to $3.6775.

Soybeans are declining in concert with oil. Talk of demand strength seemingly supported beans and meal Tuesday night, but the bean market couldn’t sustain the rise. Depressed Asian palm oil prices are still dragging soyoil quotes downward and seemed to pull beans downward as well. Meal remains surprisingly strong. September soybean futures slumped 10.0 cents to $10.8425/bushel around midsession Wednesday, while November futures sagged 8.75 cents to $10.5075. September soyoil fell 0.53 cents to 34.11 cents/pound, but September soymeal advanced $4.8 to $370.0/ton.

The wheat markets may be suffering spillover weakness. Tuesday’s USDA reports also held bearish implications for wheat prices, but they had rebounded modestly last night. They turned lower again this morning, possibly due to the malign influence of slumping corn prices, which implies no wheat feeding. September CBOT wheat slid 4.25 cents to $5.3375/bushel shortly before lunchtime Wednesday, while September KC wheat dropped 5.5 cents to $6.0775/bushel, and September MWE wheat slipped 4.75 to $6.0425.

Bearish cash news is depressing cattle futures. Fed cattle reportedly traded at $155/cwt (cents/pound) Tuesday evening and did so again this morning. As one would expect, the implied $5.00 weekly drop sent CME prices sharply lower. October live cattle futures dove 1.87 cents to 145.80 late Wednesday morning, while December futures tumbled 0.77 cents to 147.97 cents/pound. Meanwhile, September feeder futures plunged 1.85 cents to 212.80 cents/pound and November futures sank 1.77 to 211.27.

The hog market is trying to stabilize. Diving cash hog and wholesale pork values have weighed heavily upon CME hog prices lately, but traders seemed to decide the recent breakdown had largely run its course this morning. For example, despite talk of surging seasonal supplies during late summer, traders also realize that grocers traditionally tend to buy aggressively for Labor Day features during the second half of August. October hog futures edged up 0.05 cents to 97.22 cents/pound in late Wednesday morning trading, while December advanced 0.65 cents to 87.95.

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ARTICLES BY DOANE ADVISORY SERVICES

Sliding soy meal futures took starch out of crop markets Tuesday
October 28, 2014 1:30 p.m.

Sliding soy meal futures took starch out of crop markets Tuesday

Corn futures set back in concert with soybeans. Soybeans and meal led the crop markets sharply higher Monday night and Tuesday morning, with bulls apparently banking on robust demand and slow harvests to power prices higher. However, the surge ran out of momentum and bullish profit-taking and fresh selling greatly reduced the gains. Corn did close slightly higher. December corn futures ended Tuesday having gained 1.5 cents to $3.645/bushel, while May added 1.25 to $3.8675.

Tuesday's early meal reversal weighed on crop markets
October 28, 2014 9 a.m.

Tuesday's early meal reversal weighed on crop markets

Talk of slow harvesting is again boosting corn futures. Soybeans and meal led the crop markets higher overnight, but have set back from their highs. However, that has done little to discourage corn bulls, who reportedly were encouraged by the persistently slow harvest. December corn futures climbed 4.75 cents to $3.6775/bushel late Monday morning, while May added 4.0 to $3.895.

Ag markets posted mixed closes ahead of Thursday's USDA reports
September 10, 2014 1:30 p.m.

Ag markets posted mixed closes ahead of Thursday's USDA reports

Traders were looking forward to Thursday’s USDA reports Wednesday. Expectations for a massive corn harvest have weighed heavily upon the market this summer. However, the possibility that tomorrow’s USDA Crop Production and WASDE reports will hold surprises apparently spurred short-covering ahead of their release. Thus, corn futures traded slightly higher. December corn futures closed up 1.5 cents to $3.4575/bushel Wednesday, while May rose 1.25 to $3.6675.