Corn farmers must have had jet engines strapped to their tractors this past week, as the pace of corn planting hit high gear. USDA’s Crop Progress report on Monday said that 19 percent of the corn crop was planted. That compares to just three percent last week, five percent last year at this time and the five-year average of nine percent. Rain forecast for later this week may slow things down in places, but this kind of a start on corn-planting bodes well for yields if weather conditions remain otherwise favorable. But even with the bearish implications of planting progress, as well as weak exports again this week, Corn futures managed a small rally. The May contract was up three cents compared to last Tuesday, with the July up two cents and new-crop December up a penny. Carryover strength from other grains and the strength of outside markets helped keep the ink black this week.
Soybeans rallied as well, with the May contract up 16 cents for the week, while July was up almost 19 cents and new-crop November gained more than 18 cents. Excellent export demand for U.S. beans and the tight supply situation both contributed to the rally.
Wheat values also moved higher this week, as the May contract in Chicago gained a dime and in Kansas City both the May and July contracts were up nine cents compared to last Tuesday. The fundamentals for wheat are nearly all bearish, as old-crop supplies are big, exports are slack and the growing winter wheat crop is posting near records for crop conditions at this time of the growing season. Even planting progress for spring wheat is well ahead of normal, and that’s in states that were hit the hardest last fall and winter by wet weather. But even with all those bearish factors, support from speculators, as well as higher prices for energy and the stock market, kept wheat values higher this week.
Livestock markets were mixed this week, with many analysts thinking that the spring cattle rally had run its course. Live Cattle futures did end the week higher, as the April contract gained 35 cents, while June was up $1.12 and August gained 87 cents. But cash fed cattle sales were just steady with the previous week, at mostly $98-100 in the South. Boxed-beef cutout values were modestly higher, up $1.11 for Choice and 53 cents for Select, but the Choice/Select spread remained at a historically narrow three dollars.
Feeder Cattle prices were softer this week, as the April futures contract lost $1.65 and May was down $1.05. Fall contracts were near steady, as the September gained 17 cents and October picked up 32 cents. Cash feeder auctions were also softer, as increased risk and capital requirements combined to reduce the demand for stockers and feeders this week.
Hog values continued strong this week, as concerns about adequate supplies of market-ready hogs began to be taken more seriously. Hog slaughter is down, but both cash and futures prices for hogs and pork continue to climb. The May Lean Hog futures contract gained $1.50 compared to last Tuesday, while the three-area lean hog carcass value was up $3.92 for the week and cash butchers in Red Oak were up three dollars compared to last Tuesday, at $55.
This Friday, USDA releases the Monthly Cattle on Feed report, which is widely expected to show increased placement of cattle into feedlots during March. In addition, weather and planting progress will continue to influence the grain markets for several weeks to come.
Corn farmers put tractors in high gear
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Corn farmers must have had jet engines strapped to their tractors this past week, as the pace of corn planting hit high gear. USDA’s Crop Progress report on Monday said that 19 percent of the corn crop was planted. That compares to just three percent last week, five percent last year at this time and the five-year average of nine percent. Rain forecast for later this week may slow things down in places, but this kind of a start on corn-planting bodes well for yields if weather conditions remain otherwise favorable. But even with the bearish implications of planting progress, as well as weak exports again this week, Corn futures managed a small rally. The May contract was up three cents compared to last Tuesday, with the July up two cents and new-crop December up a penny. Carryover strength from other grains and the strength of outside markets helped keep the ink black this week.
Soybeans rallied as well, with the May contract up 16 cents for the week, while July was up almost 19 cents and new-crop November gained more than 18 cents. Excellent export demand for U.S. beans and the tight supply situation both contributed to the rally.
Wheat values also moved higher this week, as the May contract in Chicago gained a dime and in Kansas City both the May and July contracts were up nine cents compared to last Tuesday. The fundamentals for wheat are nearly all bearish, as old-crop supplies are big, exports are slack and the growing winter wheat crop is posting near records for crop conditions at this time of the growing season. Even planting progress for spring wheat is well ahead of normal, and that’s in states that were hit the hardest last fall and winter by wet weather. But even with all those bearish factors, support from speculators, as well as higher prices for energy and the stock market, kept wheat values higher this week.
Livestock markets were mixed this week, with many analysts thinking that the spring cattle rally had run its course. Live Cattle futures did end the week higher, as the April contract gained 35 cents, while June was up $1.12 and August gained 87 cents. But cash fed cattle sales were just steady with the previous week, at mostly $98-100 in the South. Boxed-beef cutout values were modestly higher, up $1.11 for Choice and 53 cents for Select, but the Choice/Select spread remained at a historically narrow three dollars.
Feeder Cattle prices were softer this week, as the April futures contract lost $1.65 and May was down $1.05. Fall contracts were near steady, as the September gained 17 cents and October picked up 32 cents. Cash feeder auctions were also softer, as increased risk and capital requirements combined to reduce the demand for stockers and feeders this week.
Hog values continued strong this week, as concerns about adequate supplies of market-ready hogs began to be taken more seriously. Hog slaughter is down, but both cash and futures prices for hogs and pork continue to climb. The May Lean Hog futures contract gained $1.50 compared to last Tuesday, while the three-area lean hog carcass value was up $3.92 for the week and cash butchers in Red Oak were up three dollars compared to last Tuesday, at $55.
This Friday, USDA releases the Monthly Cattle on Feed report, which is widely expected to show increased placement of cattle into feedlots during March. In addition, weather and planting progress will continue to influence the grain markets for several weeks to come.
Corn farmers put tractors in high gear
