The grain markets spent most of the past week lower, at least partially in response to the bearish Crop Production and Supply and Demand reports discussed here last week, but on Tuesday, grain markets moved higher and got back to within a few cents of last Tuesday’s prices.
For the week, May Corn futures were off a couple cents, with July off more than three, although new-crop December was near unchanged for the week. A sharp sell-off in the dollar helped lend strength to grain markets late in the week, as U.S. grain got cheaper relative to other currencies and other global suppliers. Continued worries about late or delayed planting of the 2010 corn crop may have also contributed to Tuesday’s rally.
Soybeans also had a lower week, with a rally on Tuesday getting most futures contracts back to within a few cents of last week’s prices. The May contract was off more than two cents, with July down more than three and new-crop November off less than two cents compared to last Tuesday. Again, response to last week’s reports and a rally based on the weakening dollar were the main factors.
The wheat market continues to be in a bearish supply situation, and even though export prospects look to be improving due to the weak dollar, futures prices were still lower for the week, with the May contract in Chicago down most of three cents. The May and July contracts in Kansas City were down similar amounts.
Cattle prices remained firm this week, as commodity funds continued to buy Live Cattle futures. The April contract gained $1.07 for the week, with June up $1.30 and August up 40 cents. Cash fed cattle traded in a wide range in the Southern Plains feeding areas late on Friday, with cattle trading in a range of $92-95, up one to three bucks compared to the prior week. Cutout values were also sharply higher for the week, as the Choice boxed beef price was up $3.02 for the week, while Select gained $1.69. Feedlot managers are asking for more money again this week, but don’t be surprised if packers hold out for steady or even lower prices to try and get processing margins back in line. Mud and wet weather continue to hamper cattle quality and weight gain in both live performance and carcass measurements.
Feeder Cattle futures look to have leveled off a bit after several weeks of higher prices. The March contract gained 60 cents, but April was down 17, May gained 40 cents and October was down a nickel for the week ended Tuesday. Limited supplies of feeders and a stronger fed cattle market both contributed to the higher prices. In early-week cash feeder auctions, most classes of stockers and feeders were steady to firmer.
Lean Hog values were mostly lower compared to last Tuesday, as the April contract lost 63 cents for the week, while the May gained 25 and October lost a nickel. Cash prices were also lower, with cash butchers in both Sioux Falls and Red Oak trading Tuesday at $48, down five and one dollars respectively compared to last week.
This Friday, the 19th, USDA releases the March 1 Cattle on Feed report. Given the terrible pen conditions this winter, as well as limited supplies of feeder cattle, placement of feeder cattle during February may be the most anticipated number. Grain traders are already looking forward to the Prospective Plantings report due to be released on March 31, with USDA’s thinking on how many acres of corn and soybeans farmers will try to plant this spring.
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The grain markets spent most of the past week lower, at least partially in response to the bearish Crop Production and Supply and Demand reports discussed here last week, but on Tuesday, grain markets moved higher and got back to within a few cents of last Tuesday’s prices.
For the week, May Corn futures were off a couple cents, with July off more than three, although new-crop December was near unchanged for the week. A sharp sell-off in the dollar helped lend strength to grain markets late in the week, as U.S. grain got cheaper relative to other currencies and other global suppliers. Continued worries about late or delayed planting of the 2010 corn crop may have also contributed to Tuesday’s rally.
Soybeans also had a lower week, with a rally on Tuesday getting most futures contracts back to within a few cents of last week’s prices. The May contract was off more than two cents, with July down more than three and new-crop November off less than two cents compared to last Tuesday. Again, response to last week’s reports and a rally based on the weakening dollar were the main factors.
The wheat market continues to be in a bearish supply situation, and even though export prospects look to be improving due to the weak dollar, futures prices were still lower for the week, with the May contract in Chicago down most of three cents. The May and July contracts in Kansas City were down similar amounts.
Cattle prices remained firm this week, as commodity funds continued to buy Live Cattle futures. The April contract gained $1.07 for the week, with June up $1.30 and August up 40 cents. Cash fed cattle traded in a wide range in the Southern Plains feeding areas late on Friday, with cattle trading in a range of $92-95, up one to three bucks compared to the prior week. Cutout values were also sharply higher for the week, as the Choice boxed beef price was up $3.02 for the week, while Select gained $1.69. Feedlot managers are asking for more money again this week, but don’t be surprised if packers hold out for steady or even lower prices to try and get processing margins back in line. Mud and wet weather continue to hamper cattle quality and weight gain in both live performance and carcass measurements.
Feeder Cattle futures look to have leveled off a bit after several weeks of higher prices. The March contract gained 60 cents, but April was down 17, May gained 40 cents and October was down a nickel for the week ended Tuesday. Limited supplies of feeders and a stronger fed cattle market both contributed to the higher prices. In early-week cash feeder auctions, most classes of stockers and feeders were steady to firmer.
Lean Hog values were mostly lower compared to last Tuesday, as the April contract lost 63 cents for the week, while the May gained 25 and October lost a nickel. Cash prices were also lower, with cash butchers in both Sioux Falls and Red Oak trading Tuesday at $48, down five and one dollars respectively compared to last week.
This Friday, the 19th, USDA releases the March 1 Cattle on Feed report. Given the terrible pen conditions this winter, as well as limited supplies of feeder cattle, placement of feeder cattle during February may be the most anticipated number. Grain traders are already looking forward to the Prospective Plantings report due to be released on March 31, with USDA’s thinking on how many acres of corn and soybeans farmers will try to plant this spring.
