Chip's Chore Time
Chore time for me isn't what it used to be when I was growing up on our eastern Iowa farm. In fact... I don't even have horse chores to do any more!
July 5 Monday Morning Wake Up Call
Jul 05, 2011
Every Monday morning, Pro Farmer editors record the "Monday Morning Wake Up Call." It's a recorded message available by clicking here.
But... if you'd rather read the report instead of listening, each Monday morning I'll update the copy from the call here to help set your agenda of key issues that will be impacting the grain and livestock markets in the week ahead.
Monday Morning Wake Up Call
Good morning ... this is a special Tuesday morning edition of Pro Farmer’s Monday Morning Wake Up Call for July 5. We hope you all had an enjoyable and safe Independence Day celebration!
Grain futures were higher overnight after a very volatile week last week. To establish a short-term low, market bulls, however, want to see some followthrough buying during the day session.
One of the biggest reports coming this week for the grains will come this afternoon in the Weekly Crop Condition Report. Traders were surprised by the slight downtick in conditions in the week ended June 26. With dry conditions last week on a shallow-rooted eastern Corn Belt corn crop, don’t be surprised if the crop conditions deteriorate just a bit in this afternoon’s update.
The weather forecast for this week calls for mostly seasonal temps, but the chance for widespread rain is relatively light. Most areas of the Corn Belt are expected to see below-normal rains for the week.
Just as important as the Crop Condition Report will be the attitude of speculative traders in the corn pit as we start the second half of the year. Much of the recent pressure on corn futures was the result of very aggressive speculative long liquidation. Everybody will be watching the spec action early this week to figure out if the big professional trading funds have decided to get back onto the long side of the market.
Traders will also keep a close eye on corn export demand this week. The recent price slide has attracted increased export demand from Asia and there is plenty of talk in the markets this morning about increase Chinese corn demand.
From Washington this week, there will be major oversight sessions on the conservation and specialty crop programs, a look at the E-15 blending rate, and the impact of the GIPSA livestock marketing rule on small businesses. Senate Democrats will also meet several times with President Obama and other White House officials on the debt-ceiling talks. There have been no sessions scheduled between Obama and Republicans at this time.
That’s your Pro Farmer Monday Morning Wake Up Call.