Argentina Weather Remains in the Spotlight
Jan 29, 2013
Good Morning! Paul Georgy with early morning comments for January 29, 2013 at 4:45 am. Grain futures are mixed on light overnight volume. #Corn prices have found a trading range between 7.12 and 7.35. Traders are satisfied with these prices as volume is light and the uncertainty of South American weather remains a focus. The GFS and the Euro weather models are not in agreement on temps and when rain might arrive in production areas of Argentina. The more consistent Euro Model has pushed the rain off into next week. There are some areas in Brazil that could get heavy rains. Traders have commented that overall the rain will benefit more than it will harm. The week ahead has several important economic reports that could sway traders thinking. On Wednesday we have the 4th quarter GDP in the morning and the FOMC meeting in the afternoon and then Friday we have the unemployment report. Export inspections were higher than last week for corn and slightly lower for #soybeans. The barge crashing into a bridge at Vicksburg has a been big delay in barge traffic already and the Mississippi is not expected to open until Thursday. #Cattle futures recover from oversold conditions on Monday due to a friendly Cattle-on-Feed report. We are expecting cash cattle to trade higher this week. However product is not showing much of sign that demand is getting better. Boxed beef was up yesterday. Choice was up .17 and select was up .56. Lean hog futures have been the follower of late. Tight cash #hog supplies and a firm tone to product provides support. Pork cutout values were up .52 on Monday.
Markets as of 4:45 AM
- Mar Corn +2
- Mar Beans -2 1/2
- Mar Wheat +1 1/4
- Feb Cattle -.35
- Feb Hogs -.27
- Mar Dlr +.01
- Mar S&P -2.75
- Mar Crude -.01
- Feb Gold +6.80
