Cattle prices rebound by midday

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Corn futures are lower at midday. Additional export sales were announced this morning totaling nearly 27 million bushel including 10.3 million bushels designated to China and 16.5 million to unknown which is expected to ultimately be switched to China. Export sales announcements so far this week total over 50 million bushels split between the current marketing year and 2012/13. However, despite the export sales news and sharply higher soybean prices, corn futures have turned lower at midday. May corn is 4 ¾ cents lower at $6.13 ½. The December contract is 1 ¾ cents lower at $5.39 ¾.

Soybean futures are trading higher at midsession. Soybean and product prices are adding onto gains made on Tuesday for much the same reason. As the soybean harvest progresses in South America, the later harvests remain disappointing. There had been some hope that the double-cropped soybeans in Argentina would yield better due to being planted later when rains improved. But frost has hit that crop. Meanwhile, rumors are flying about more Chinese buying of U.S. beans. The May contract is up 13 3/4 cents at $14.75 and the November contract is up 9 1/4 cents at $13.61 1/4.

Wheat futures are trading lower midday. The frost threat to soft red winter wheat for this weekend and into early next week has now dissipated to little or no threat and the reversal in corn futures to the downside plus a loss of early gains in soybeans quickly added to selling pressure in wheat as well. From a global perspective, the weather outlook is positive for 2012 production and negative for prices. CBOT May is down 8 ¾ cents at $6.15 ¾; KCBT May is down 4 ¾ cents at $6.28 ¼ and MGE May is down 13 ½ cents at $7.71.

Cattle futures are higher at midday. News that a California dairy cow tested positive for BSE sent CME futures down the daily limit on Tuesday, but prices bounced from the lows in electronic trading late Tuesday and are higher so far today amid assurances from most beef importing countries that they are not planning to restrict beef imports from the U.S. Domestic demand has already been under some pressure from LFTB and high retail prices. June cattle futures are 85 cents higher $112.42 and August is 70 cents higher at $116.30.

Lean hog futures are higher at midday. Lean hog futures are bouncing back from the late session collapse on Tuesday. News of the discovery of a cow with BSE sent cattle and hog markets plunging on Tuesday, but traders are coming back into the market Wednesday morning. Futures are still down from where they were at midday yesterday, but they are recovering. Cash hog and pork prices were a little higher on Tuesday, but not enough to have much impact on futures prices. The May contract is up 30 cents at $86.90. June at $87.05 is 50 cents higher



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