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Ag markets moved almost unanimously higher Wednesday morning

Doane Advisory Services | Hagadone News Network | UPDATED 10 years, 3 months AGO
by Doane Advisory Services
| October 22, 2014 9:00 AM

Soybeans pulled grain prices higher Wednesday morning. Corn and wheat futures set back from overnight gains in apparent response to growing harvest pressure on the yellow grain. However, Brazil’s drought problems and news of a big Chinese purchase sent the soy complex surging, which pulled grain futures upward as well. December corn futures gained 1.5 cents to $3.575/bushel around midsession Wednesday, while May moved up 1.25 to $3.7975.

Chinese news confirmed early soy strength. Delays to the US harvest have reduced predictions for the U.S. soybean crop, whereas severe Brazilian dryness is delaying that country’s bean plantings and lower output forecasts as well. The bullish implications of those shifts were seconded by early news of big soybean sales this morning, thereby boosting CBOT futures. November soybean futures surged 11.75 cents to $9.76/bushel late Wednesday morning, while December soyoil rose 0.48 cents to 32.24 cents/pound, and December soymeal gained $6.4 to $349.3/ton.

The lack of harvest pressure may be spurring wheat gains. Strength spilling over from the corn and soy pits is probably boosting wheat prices as well. Fund short-covering and the lack of harvest pressure on the golden grain may also be encouraging bulls despite having U.S. grain shut out of yesterday’s big Egyptian tender. December CBOT wheat rallied 7.5 cents to $5.2675/bushel in late Wednesday morning action, while December KC wheat added 9.0 cents to $6.1125/bushel, and December MWE wheat climbed 7.0 to $5.76.

Surprising beef gains may be boosting cattle futures. The livestock/meat industry has recently been expecting wholesale beef weakness through late October. That pessimism may be a big reason CME futures are reacting strongly to the modest beef gains seen this morning. December live cattle futures advanced 0.95 cents to 168.00 cents/pound as the lunch hour loomed Wednesday, while April futures rebounded 0.67 to 165.32. Meanwhile, November feeder cattle futures jumped 1.17 cents to 235.10 cents/pound and January feeders vaulted 1.05 cents to 229.30.

Hog market bulls seem to expect surprising spot firmness. Hog futures are trading at large discounts to the CME lean hog index, thereby reflecting widespread seasonal and cyclical bearishness. Indeed, today’s early cash and wholesale news was not friendly. Still, futures rallied sharply, thereby seeming to reflect trader expectations for a short-term bounce in spot values. December hog futures leapt 1.40 cents to 89.85 cents/pound late Wednesday morning, while April hogs ran up 1.45 to 88.70.

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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.

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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.

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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.