Fast-moving corn planters, a stronger dollar and weak outside markets resulted in mostly lower grain prices this week. May Corn futures were down eight cents compared to last Tuesday, with the July contract down more than 11 cents and new-crop December off more than 16. On Monday, USDA reported that 50% of corn acreage had been planted, compared to 19% last week and the five-year average of 22%. The stronger dollar was feared to be cutting into already weak exports and the collapse of the stock market and drop in oil prices on Tuesday also pressured corn values.
Soybean futures were mostly down about a penny for the week, although the August contract did gain a half-cent. Prices had been stronger before Tuesday’s sell-off due to the stronger dollar and the weak stock market. In addition, exports were softer this week, as South American new-crop soybeans took over a larger share of the world market.
Wheat prices were also lower, with the May and July contracts in Chicago off about eight cents, while in Kansas City the May contract lost more than nine cents and new-crop July was down nearly a dime. In addition to the bearish factors that pressured the other grains, the outstanding crop conditions continued for winter wheat and spring wheat planting was way ahead of normal as well.
Friday’s Cattle on Feed report from USDA was friendly. Although placements of feeder cattle during March were up three percent compared to March of 2009, pre-report estimates expected an increase of more than six percent. However, marketings of fed cattle during March were also a bit slower than expected, at four percent higher than last year compared to pre-report estimates of a five percent increase. Those factors made for a stronger market until mid-day Tuesday, when the plunging stock market drove Live Cattle futures lower. The soon-to-expire April contract was off 62 cents for the week ended Tuesday, with the June down 87 cents and August off 25.
Last week’s cash fed cattle trade was at mostly $99 in the Southern feeding areas, about steady with the previous week, but some cattle were already trading at $98 on Tuesday this week, as hedgers took advantage of a strong basis to reap profits. Boxed beef cutout values were stronger, as the Choice was up $2.24 compared to last week and Select gained $2.33.
Feeder Cattle futures were higher for the week, as the April contract gained $1.55, while the May was up 52 cents and October gained 87. Early-week cash feeder auctions were also firmer, up a couple of bucks on most classes of stockers and feeders, as lower feed prices outweighed lower prices for fed cattle.
Hog prices were mixed, with cash butchers in Red Oak up four bucks for the week, and trading as high as $61 in Sioux Falls on Tuesday. The nearby May Lean Hog futures contract was up $1.92 and the carcass-based three-area price gained $3.27 compared to last week. But deferred futures contracts were down, as the June lost 55 cents and July was down $1.12.
Planting weather, the stock market and the economy in general will likely be the main factors in the ag markets this coming week.
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Fast-moving corn planters, a stronger dollar and weak outside markets resulted in mostly lower grain prices this week. May Corn futures were down eight cents compared to last Tuesday, with the July contract down more than 11 cents and new-crop December off more than 16. On Monday, USDA reported that 50% of corn acreage had been planted, compared to 19% last week and the five-year average of 22%. The stronger dollar was feared to be cutting into already weak exports and the collapse of the stock market and drop in oil prices on Tuesday also pressured corn values.
Soybean futures were mostly down about a penny for the week, although the August contract did gain a half-cent. Prices had been stronger before Tuesday’s sell-off due to the stronger dollar and the weak stock market. In addition, exports were softer this week, as South American new-crop soybeans took over a larger share of the world market.
Wheat prices were also lower, with the May and July contracts in Chicago off about eight cents, while in Kansas City the May contract lost more than nine cents and new-crop July was down nearly a dime. In addition to the bearish factors that pressured the other grains, the outstanding crop conditions continued for winter wheat and spring wheat planting was way ahead of normal as well.
Friday’s Cattle on Feed report from USDA was friendly. Although placements of feeder cattle during March were up three percent compared to March of 2009, pre-report estimates expected an increase of more than six percent. However, marketings of fed cattle during March were also a bit slower than expected, at four percent higher than last year compared to pre-report estimates of a five percent increase. Those factors made for a stronger market until mid-day Tuesday, when the plunging stock market drove Live Cattle futures lower. The soon-to-expire April contract was off 62 cents for the week ended Tuesday, with the June down 87 cents and August off 25.
Last week’s cash fed cattle trade was at mostly $99 in the Southern feeding areas, about steady with the previous week, but some cattle were already trading at $98 on Tuesday this week, as hedgers took advantage of a strong basis to reap profits. Boxed beef cutout values were stronger, as the Choice was up $2.24 compared to last week and Select gained $2.33.
Feeder Cattle futures were higher for the week, as the April contract gained $1.55, while the May was up 52 cents and October gained 87. Early-week cash feeder auctions were also firmer, up a couple of bucks on most classes of stockers and feeders, as lower feed prices outweighed lower prices for fed cattle.
Hog prices were mixed, with cash butchers in Red Oak up four bucks for the week, and trading as high as $61 in Sioux Falls on Tuesday. The nearby May Lean Hog futures contract was up $1.92 and the carcass-based three-area price gained $3.27 compared to last week. But deferred futures contracts were down, as the June lost 55 cents and July was down $1.12.
Planting weather, the stock market and the economy in general will likely be the main factors in the ag markets this coming week.
