Dry Forecast Ignites Buying in Grains
Aug 19, 2013
Good Morning! Paul Georgy with early morning comments for August 19, 2013 at 5:00 am. Grain futures are sharply higher on dry, warm forecast. Corn futures are testing last week’s highs while soybeans set new highs for the move.
Allendale starts its 24th Annual Yield Survey today. We will be collecting data for the next 2 weeks and will release the results on September 4th at 7:30 AM. We need your help in filling out the survey for your farm.
Weather forecasts are for dry conditions this week with better coverage next week. Traders are concerned if soybeans can hang on. Personal observation of soybean fields across northern IL on Sunday afternoon showed signs of stress with browning at the tops of some hills.
Processor basis for corn and soybeans remain firm as supplies are tight and farmers are reluctant to clean out their bins.
Technically, soybeans appear to be headed to retest the 13.00 level now that 12.75 has been broken.
ProFarmer will begin their crop tour today. Trade is expecting supportive news for markets as reporters will be traveling with the group. Social media will have pictures of ear size comparisons and field conditions. They will have the final results of the tour on Friday morning.
Managed Money funds increased short positions in corn by 10149 to -123,221. They added to long soybeans by 3,597 contracts and reduced their short position in soybeans by 3,339 to -43.996 contracts. The funds also increased long positions in Live Cattle by 17,450 contracts last week.
Cattle finally traded late Friday afternoon with packers paying 123 in the south which was a full 2.00 higher than last week. Boxed beef was firmer with choice up 1.09 and select up .68. Cash hogs closed the week under pressure as hog supplies increase. The CME Feeder Index was up .08 to 152.36. Pork cutout was up 1.03. We expect some fill in demand early this week for the Labor Day holiday.
Markets as of 5:00 AM
- Dec Corn +9 1/4
- Nov Beans +17
- Sep Wheat +7 1/2
- Oct Cattle Steady=Higher
- Oct Hogs Steady-Higher
- Sep Dlr -.02
- Sep S&P +1.00
- Sep Crude -.34
- Oct Gold +5.00
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