meta Ag markets are again starting the week rather poorly :: The Bullvine - The Dairy Information You Want To Know When You Need It

Ag markets are again starting the week rather poorly


Large supplies are once again weighing on the crop markets. Although they remained generally weak, the gain and soy complexes seemed to stabilize before the weekend. However, with no major political events occurring, traders seemed to feel free to add to short positions Sunday night. Lack of freeze damage in the northern Plains and talk of rising Russian production probably encouraged the selling as well. December corn futures slid 1.75 cents to $3.3675/bushel early Monday morning, while May sank 2.25 to $3.5725.

The soy complex is also mostly lower in early-week action. The lack of frost damage to the soybean crop in the northern Corn Belt seems to be undercutting prices at the CBOT. Meal demand still seems strong, as exemplified by the firmness exhibited by meal futures. Conversely, soyoil sagged despite weekend gains in palm oil prices. November soybean futures dipped 0.5 cent to $9.8475/bushel Sunday night, while October soyoil skidded 0.14 cents to 32.41 cents/pound, and October soymeal edged up $0.1 to $338.6/ton.

The wheat markets resumed their ongoing decline. Wheat futures fell sharply at midsession Friday, but firmed before close. Despite weekend news that Saudi Arabia bought 610,000 tonnes, prices came under fresh pressure to start this week. Again, glutted global conditions are depressing the markets. December CBOT wheat slumped 4.5 cents to $4.98/bushel in pre-dawn Monday trading, while December KC wheat sagged 3.75 cents to $5.895/bushel, and December MWE wheat slipped 2.75 to $5.7525.

Beef losses apparently weighed on cattle futures Friday. Last week’s technical failure and growing cash market pessimism seemed to spark Thursday’s drop in cattle futures. Prices firmed in early trading, but moved lower as the session passed; that probably reflected the sizeable beef losses posted at midday. October live cattle futures dropped 1.10 cents to 156.27 cents/pound in late Friday action, while December futures slumped 0.45 to 159.25. However, October feeder futures bounced 0.32 cents to 225.92 cents/pound, while January feeders lost 0.20 to 217.77.

Hog futures struggled amidst mixed spot market signals Friday. Seasonal price optimism powered recent gains in hog futures. But cash and wholesale prices turned decidedly mixed late last week, thereby undermining the bullish bias built into nearby CME futures. October hogs ended the week having fallen 0.67 cents to 105.70 cents/pound, while December dove 0.90 to 96.30.

Source: Doane Advisory Services

Cotton futures continued Friday’s late skid. The cotton market has performed surprisingly since early August, thereby appearing to reflect diminished domestic production prospects. However, the market seemed to lose its bullish momentum last Friday and closed weakly. It’s slipping to start this week, as well, with test of underlying chart support now seeming rather likely. December cotton futures tumbled 0.59 cents to 67.41 cents/pound shortly after sunrise Monday, while March futures fell 0.43 cents to 67.00.

Source: Doane Advisory Services


Send this to a friend