Sep 19, 2014
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The Allendale Wake-Up Call

RSS By: Paul Georgy,

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.

Can We Hold A Turn around Tuesday Rally?

Jul 30, 2013

Can We Hold A Turn around Tuesday Rally?

Good Morning! Paul Georgy with early morning comments for July 30, 2013 at 4:45 am. Grain futures are higher. Can the rally hold throughout the session?

Crop ratings were 63% in Good/Excellent category for corn and soybeans which is above the 5 year average of 59% and 58% respectively. Weather forecasts are for ideal growing conditions for most of cornbelt. There are spots that missed the rain where crops may still be stressed. Overall, market bullish attitude has been shattered with cash basis and futures selloff in recent days. However, many farmers are telling us when harvest begins they intend to fill their bins then sell if they have some left over. 2013 has been a big income year for those producers who had crops to sell. This would suggest a lot of corn moving after the first of the year. Talk to your Allendale Broker to work out a strategy for you.

Traders continue to wrangle with what the USDA is going to do about the 2012/13 soybean ending stocks on the August Supply and Demand report. Crush margins are very attractive even with the selloff in meal and exports are running above expectations. The Roger’s Fund roll from Sep to Dec corn and wheat begins today and will run through Thursday. First notice day for the August contracts at CBOT is tomorrow. Outside markets are preparing for the unemployment data on Friday morning.

Hog slaughter was only 355,000 on Monday as 2 major hog packing facilities were closed. Product demand is tepid with cutout values up only $.46. Packer margins are about breakeven but we are going into a time slot where meat values decline and hog supplies increase. Monday’s IA-MN hog prices feel an average of $1.06 from Friday. Cash cattle trade is at a standstill while product has not been able to find a bottom. Choice beef was down $.74 and select was down $.49. Chart picture looks sideways in cattle and lean hog futures broke the 50 day moving average on Monday. Get the full story and strategies by subscribing today to the Allendale Advisory Report.

Markets as of 4:45 AM

  • Dec Corn +4 1/4
  • Nov Beans +2 1/2
  • Sep Wheat +4
  • Aug Cattle -.15
  • Aug Hogs -.90
  • Sep Dlr +.09
  • Sep S&P +1.50
  • Sep Crude -.67
  • Aug Gold -6.50

View Today’s Chart of the Day

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