Less corn and more soybeans than expected; that was the gist of Tuesday morning’s Crop Production and Supply and Demand reports from USDA. USDA now projects there will be 1.738 billion bushels remaining in the nation’s grain bins at the close of the marketing year this fall. That’s a lot of corn, but 115 million bushels less than analyst’s pre-report estimates. In addition, early estimates for the upcoming year were also less than expected, with USDA predicting 1.818 billion bushels still in bins in the fall of 2011, which was 66 million less than early estimates. The changes were a combination of a reduction in the 2009 harvest and increased use of corn for ethanol and export, partially offset by a reduction in feed use. The early forecast for 2010 corn production is 13.37 billion bushels, based on planting intentions and projection of high yields based on early planting. That number is obviously subject to lots of revision as the summer progresses, but will be used as a benchmark for additional news and reports.
Besides the reports, the likelihood of at least some frost damage in parts of the Northern Corn Belt supported corn values this week. For the week ended Tuesday, May Corn futures were up nearly a dime, with the July contract up eight cents and new-crop December up six.
Soybeans ended the week lower, even though soybean prices rose in the face of a moderately bearish USDA report Tuesday morning. For the week, May Soybean futures were down almost 19 cents, with the July contract down 21 and new-crop November off more than 25 cents. Projected ending stocks, for both the current year and next year, were higher than pre-report estimates. For soybeans, perhaps the biggest factor this past week was the wild swings in the stock market, with the Dow as much as 1,000 points lower last Thursday before recovering somewhat later that day, as well as Friday and Monday.
Wheat values also slumped this week, although there was little new of interest for wheat traders in Tuesday’s reports. A combination of unsettled economic news and lower soybean prices were enough to cause the May Wheat contract in Chicago to lose 16 cents compared to last Tuesday, while the July contract was off more than 17. In Kansas City, the May contract lost more than 11 cents for the week, as the new-crop July contract dropped 13 cents.
Livestock markets were unsettled this week as well, as Live Cattle futures closed a bit higher while feeders and hogs lost ground. For the week ended Tuesday, the June Live Cattle contract was up 77 cents, with the August up 22 and October up 40 cents. Boxed beef cutout values were stronger as well, with the Choice up 64 cents and Select up a dime for the week. Cash fed cattle sales were at mostly $99 to $100 last week, with early sales on Tuesday of this week at about the same level.
May Feeder Cattle futures lost $1.32 for the week, with the August down an even dollar and October off 70 cents. Cash feeder auctions were mixed, with yearling cattle mostly stronger, while lighter grass-weight cattle were softer, since most summer stockers have already been bought and turned out.
Hog prices took a beating this week, after a long run of higher values for both cash and futures. May Lean Hog futures were down $2.10 for the week, with June down $1.42 and July off $1.67. Cash butchers in Sioux Falls were down more than three dollars compared to last week, trading Tuesday at $59.50, although the Red Oak cash market was steady with last week at $60.
Next Friday, May 21, is the May 1 Cattle on Feed report from USDA, however that is likely to be overshadowed by the stock market, energy prices and other outside markets during the coming week. In addition, grain traders will be watching weather maps and looking for freeze damage to emerging crops.
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Less corn and more soybeans than expected; that was the gist of Tuesday morning’s Crop Production and Supply and Demand reports from USDA. USDA now projects there will be 1.738 billion bushels remaining in the nation’s grain bins at the close of the marketing year this fall. That’s a lot of corn, but 115 million bushels less than analyst’s pre-report estimates. In addition, early estimates for the upcoming year were also less than expected, with USDA predicting 1.818 billion bushels still in bins in the fall of 2011, which was 66 million less than early estimates. The changes were a combination of a reduction in the 2009 harvest and increased use of corn for ethanol and export, partially offset by a reduction in feed use. The early forecast for 2010 corn production is 13.37 billion bushels, based on planting intentions and projection of high yields based on early planting. That number is obviously subject to lots of revision as the summer progresses, but will be used as a benchmark for additional news and reports.
Besides the reports, the likelihood of at least some frost damage in parts of the Northern Corn Belt supported corn values this week. For the week ended Tuesday, May Corn futures were up nearly a dime, with the July contract up eight cents and new-crop December up six.
Soybeans ended the week lower, even though soybean prices rose in the face of a moderately bearish USDA report Tuesday morning. For the week, May Soybean futures were down almost 19 cents, with the July contract down 21 and new-crop November off more than 25 cents. Projected ending stocks, for both the current year and next year, were higher than pre-report estimates. For soybeans, perhaps the biggest factor this past week was the wild swings in the stock market, with the Dow as much as 1,000 points lower last Thursday before recovering somewhat later that day, as well as Friday and Monday.
Wheat values also slumped this week, although there was little new of interest for wheat traders in Tuesday’s reports. A combination of unsettled economic news and lower soybean prices were enough to cause the May Wheat contract in Chicago to lose 16 cents compared to last Tuesday, while the July contract was off more than 17. In Kansas City, the May contract lost more than 11 cents for the week, as the new-crop July contract dropped 13 cents.
Livestock markets were unsettled this week as well, as Live Cattle futures closed a bit higher while feeders and hogs lost ground. For the week ended Tuesday, the June Live Cattle contract was up 77 cents, with the August up 22 and October up 40 cents. Boxed beef cutout values were stronger as well, with the Choice up 64 cents and Select up a dime for the week. Cash fed cattle sales were at mostly $99 to $100 last week, with early sales on Tuesday of this week at about the same level.
May Feeder Cattle futures lost $1.32 for the week, with the August down an even dollar and October off 70 cents. Cash feeder auctions were mixed, with yearling cattle mostly stronger, while lighter grass-weight cattle were softer, since most summer stockers have already been bought and turned out.
Hog prices took a beating this week, after a long run of higher values for both cash and futures. May Lean Hog futures were down $2.10 for the week, with June down $1.42 and July off $1.67. Cash butchers in Sioux Falls were down more than three dollars compared to last week, trading Tuesday at $59.50, although the Red Oak cash market was steady with last week at $60.
Next Friday, May 21, is the May 1 Cattle on Feed report from USDA, however that is likely to be overshadowed by the stock market, energy prices and other outside markets during the coming week. In addition, grain traders will be watching weather maps and looking for freeze damage to emerging crops.
