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The ag markets decided to celebrate the New Year by having a party. Every price that is consistently watched by this column was up in the past week, a rare occurrence even when there are clear bullish fundamental and technical factors dominating the market, and that’s not the case now. The hog markets took off despite a bearish Quarterly Hogs and Pigs report from USDA last week. March Lean Hog futures gained $4.22 in the week ended Tuesday, with the April contract up $2.77 and May up $2.80. In addition, cash butchers in Sioux Falls gained three bucks, trading Tuesday at $37.50. Pork values seemed to be the main catalyst, as demand was pulling wholesale pork prices higher.
In the cattle markets, good attitudes seemed to rule the day. Perhaps most impressive was the cash feeder cattle market, with early week auctions called as much as $10 higher than the pre-holiday markets. January Feeder Cattle futures were up $2.15 compared to last Tuesday, with the March contract up the same amount, while the October contract gained $2.30 for the week.
Cash fed cattle also traded higher, at mostly $86-87 last week in light trade. That was up a dollar or two from the previous week and feedlots are asking $90 early this week already. Of course, as any parent knows, asking and getting are two different things, but stronger Live Cattle futures and improving boxed beef cutout values give feeders at least some leverage over packers. The February futures contract gained $2.65 for the week, with the April up $1.92 and June up $2.22. Choice cutouts were up $1.38 and Select gained 85 cents. Although the economy itself kept on recording bad news, the stock market apparently sees some light at the end of the tunnel. Gains in stock values are hopefully signaling that the worst may be over for the economy, with improved demand for beef and other meats not far behind, but I hope you’ll forgive me if I don’t break out the champagne just yet.
Grain prices also surged higher as export prospects improved and potential weather problems surfaced in South America. January Soybean futures gained almost 69 cents in the week ended Tuesday, with the March contract up 63 cents in the same time period. Chinese demand for soybeans was one of the main factors in the price increases, with bullish commodity funds also contributing to the party.
Corn futures were up more than 31 cents in both the March and May contracts, with new-crop 2009 December up more than 30 cents. Carryover strength from soybeans and dry weather and poor crop forecasts in Argentina helped pull corn values higher, even though exports were disappointing and there is currently abundant corn in storage.
Exports and Argentina also pulled wheat values up, with the Chicago futures contracts up about 39 cents, while in Kansas City most contracts were up about 48 cents compared to last Tuesday.
Next Monday, USDA releases the monthly Supply and Demand reports and the final Crop Production report for 2008 fall-harvested grains. But, the stock market, economy and direction of other outside markets will likely have more effect than the official reports from USDA.
The ag markets decided to celebrate the New Year by having a party. Every price that is consistently watched by this column was up in the past week, a rare occurrence even when there are clear bullish fundamental and technical factors dominating the market, and that’s not the case now. The hog markets took off despite a bearish Quarterly Hogs and Pigs report from USDA last week. March Lean Hog futures gained $4.22 in the week ended Tuesday, with the April contract up $2.77 and May up $2.80. In addition, cash butchers in Sioux Falls gained three bucks, trading Tuesday at $37.50. Pork values seemed to be the main catalyst, as demand was pulling wholesale pork prices higher.
In the cattle markets, good attitudes seemed to rule the day. Perhaps most impressive was the cash feeder cattle market, with early week auctions called as much as $10 higher than the pre-holiday markets. January Feeder Cattle futures were up $2.15 compared to last Tuesday, with the March contract up the same amount, while the October contract gained $2.30 for the week.
Cash fed cattle also traded higher, at mostly $86-87 last week in light trade. That was up a dollar or two from the previous week and feedlots are asking $90 early this week already. Of course, as any parent knows, asking and getting are two different things, but stronger Live Cattle futures and improving boxed beef cutout values give feeders at least some leverage over packers. The February futures contract gained $2.65 for the week, with the April up $1.92 and June up $2.22. Choice cutouts were up $1.38 and Select gained 85 cents. Although the economy itself kept on recording bad news, the stock market apparently sees some light at the end of the tunnel. Gains in stock values are hopefully signaling that the worst may be over for the economy, with improved demand for beef and other meats not far behind, but I hope you’ll forgive me if I don’t break out the champagne just yet.
Grain prices also surged higher as export prospects improved and potential weather problems surfaced in South America. January Soybean futures gained almost 69 cents in the week ended Tuesday, with the March contract up 63 cents in the same time period. Chinese demand for soybeans was one of the main factors in the price increases, with bullish commodity funds also contributing to the party.
Corn futures were up more than 31 cents in both the March and May contracts, with new-crop 2009 December up more than 30 cents. Carryover strength from soybeans and dry weather and poor crop forecasts in Argentina helped pull corn values higher, even though exports were disappointing and there is currently abundant corn in storage.
Exports and Argentina also pulled wheat values up, with the Chicago futures contracts up about 39 cents, while in Kansas City most contracts were up about 48 cents compared to last Tuesday.
Next Monday, USDA releases the monthly Supply and Demand reports and the final Crop Production report for 2008 fall-harvested grains. But, the stock market, economy and direction of other outside markets will likely have more effect than the official reports from USDA.
