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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.
 

Argentina Corn Cheaper Than US

Apr 25, 2013

Good Morning! Paul Georgy with early morning comments for April 24, 2013 at 5:00 am. Grain futures are higher on short covering and support from outside markets. Weather forecasts have become a little colder in the northern Midwest and rains in the south. There will be days of open weather but the various models are conflicting on when it arrives. Spreaders are likely to dominate the trading volume as we approach first notice day in May contracts.  Tight US supplies provide support to nearby contracts. Traders will be watching the Weekly Export data this morning for any surprises. See below for trade estimates for this morning's report. A South Korea corn buying group purchased 55,000 tonnes of optional origin corn which is either South America or South Africa. Argentina corn is $1.08 cheaper than the US Gulf price. US soybeans are $1.70 higher than Brazilian beans if you can tolerate the shipping delays out of Brazilian ports. Ethanol production last week was only 1% less than last year however still running 10.8% below last year on average. USDA’s projection is a 9.2% drop from last year.  Statistics Canada says Canadian farmers will plant nearly 2.4 million acres less canola and they suggest that wheat acres would increase by nearly 3 million acres. Brazil's government is forcing exporters to dump trucks on a timely basis. Bird flu in China is having a huge impact on their poultry industry. There are reports that poultry demand has dropped by 70 to 80% in eastern China which in turn is causing a slump in soybean demand. Livestock traders are expecting cash cattle to trade at 127 to 128 this week. Boxed beef was firmer on Wednesday with choice up .13 and select was up 1.03. The feeder index settled up .07 at 132.48. Live hog futures seen fund buying yesterday on hopes of improving cash markets. Pork Cutout value was up .09. Remember to sign up for the April Allendale Ag Leaders Webinar next Tuesday April 30.

Export estimates in thousand metric tonnes

                Old Crop           New Crop
Corn            200-400            150-300
Soybeans        250-350            450-600
Wheat           200-400            400-600

 

Markets as of 5:00 AM

  • May #Corn    +3 1/4
  • May #Beans   +11 3/4
  • May #Wheat   +4 3/4
  • Jun #Cattle  +.32
  • Jun #Hogs    -.02
  • Jun Dlr     -.34
  • Jun S&P     +3.25
  • Jun Crude   -.22
  • Jun Gold    +22.10

 

View the Chart of the Day

Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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