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Livestock futures outperformed the crop markets Tuesday morning

Doane Advisory Services | Hagadone News Network | UPDATED 10 years, 8 months AGO
by Doane Advisory Services
| August 26, 2014 8:30 PM

Monday’s progress report is weighing on the crop markets. The weekly USDA Crop Progress report raised the latest rating for the U.S. corn crop 1%, which made it the second-highest mid-August reading since 1994. The fact that traders were already anticipating a huge harvest doesn’t seem to be limiting the bearish reaction occurring today. September corn slumped 6.0 cents to $3.54/bushel late Tuesday morning, while December lost 5.0 to $3.625.

The soy complex turned mixed Tuesday morning. The soybean rating on the Crop Progress report slipped 1%, whereas traders were looking for an unchanged result. Nevertheless, the current reading is the best for mid-August since 1992, thereby implying outstanding fall yields. The old-crop reversal suffered Monday continued today, with soyoil prices seemingly bouncing in response to a potential slowdown in the crush. September soybean futures plunged 38.75 cents to $10.87/bushel around midsession Tuesday, while November futures dropped 7.5 cents to $10.2175. September soyoil rebounded 0.06 cents to 32.80 cents/pound, and September soymeal plummeted $14.6 to $391.5/ton.

International news seems to be depressing wheat prices. The Crop Progress report seemed supportive of the wheat markets, but news from overseas has taken precedence with traders. Russia’s latest estimate of its 2014/15 exports easily topped industry expectations. Traders were also disappointed to see U.S. wheat shut out of an Egyptian tender. September CBOT wheat fell 9.5 cents to $5.33/bushel in late Tuesday morning action, while September KC wheat tumbled 9.5 cents to $6.1325/bushel, and September MWE wheat dove 12.5 to $6.045.

Cattle futures have resumed their Monday advance. Last Friday’s late cash strength sparked a response in CME futures yesterday. Prices apparently dipped on beef weakness overnight, but have turned higher once again. Discounts built into futures may be lending a bullish bias. October live cattle futures climbed 0.35 cents to 148.50 cents/pound just before lunchtime Tuesday, while December futures gained 0.27 to 151.27. Meanwhile, September feeder futures rallied 0.85 cents to 214.12 and November futures surged 0.37 to 210.62.

Hog traders seemingly think prices are bottoming. Late-afternoon Monday reports discouraged hog traders since both cash and wholesale values had apparently resumed their recent drop. Nevertheless, futures are rallying strongly this morning, which probably reflects trader expectations for a big late-summer rebound. October hogs jumped 1.42 cents to 94.90 cents/pound late Tuesday morning, while December leapt 1.57 to 89.57.

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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.