AgDay Blog

The Allendale Wake-Up Call

RSS By: Paul Georgy, AgWeb.com

Paul Georgy serves as president/CEO of Allendale, Inc., a worldwide agricultural advisory and research firm that provides agricultural commodity price research and risk management alternatives for producers, major food companies, international corporations, foreign governments, and major news vendors.

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Profit Taking is Pushing Corn and Wheat lower

Mar 15, 2013

Good Morning! Steve Georgy with early morning comments for March 15, 2013 at 5:05 am. After a nice rally this week, we are seeing a slight setback this morning. As of the close yesterday, corn managed to bounce 13 cents higher for the week while wheat climbed 30 cents. Wheat is leading the way lower and has corn moving right along with it. Export sales yesterday were great once again for wheat as USDA announced just short of 1.1 million metric tonnes booked. That was higher than the trade estimates and continues to show that we are still the cheapest wheat around. The funds are short wheat and if they decide to get neutral or look to hold long positions this could support wheat from these levels. Corn seems to be struggling to push higher unless wheat can jump as well. We have an acreage report coming at the end of this month and the trade is expecting to see bearish numbers. Exports yesterday were surprisingly friendly to the market since they came in just over the trade estimates. As of the close yesterday, beans had dropped 35 cents this week. The talk of China slowing down their purchases of beans and the cancellation of the port strike in Brazil yesterday has helped push prices lower. Brazilian port workers had planned a one day strike that was supposed to take place on March 19^th. Yesterday they had cancelled the strike due to improved talks with the government. Brazil still has a huge backup of barges at their main ports. This doesn’t mean that the problem will be fixed, it just means it is not getting worse, for now. Allendale will be releasing our findings this morning from our 24^th Annual Acreage Survey at 7:30. We would like to thank everyone that took the time to participate in our survey. Please stay in touch with us for the results.

Markets as of 5:05 AM