Egypt and Taiwan Looking for Wheat
Dec 19, 2012
Good Morning! Paul Georgy with early morning comments for December 19, 2012 at 5:10 am. Grain futures are mixed with corn and soybeans lower and wheat higher. Taiwan is tendering for 75,000 tonnes of US or European wheat. Egypt is tendering for a couple of cargoes of wheat. The US should have a chance as wheat is now priced $22 below its nearest competitor. Corn is struggling to find a buyer of US corn as prices are still $25 to $30 above SA. We would expect to see some improvement in sales after the holidays. The snow storm set to move into the Midwest by this weekend is expected to provide some well need moisture to the wheat growing area. Informa will be updating their production estimates for 2013 this morning. Mississippi River traffic will be reduced to 8 hours per day as the scraping of the waterway begins. The weak US dollar index has not provided much support for the grains. Demand is the most important driver as seen yesterday. The cancellation of soybean purchases by China was enough reason for traders to liquidate long positions. Winter weather watch for a major snow storm to move from west to east across the cattle feeding and hog production areas has traders unsettled. A short work week due to the holiday has packers willing to wait out the storm. Boxed beef was mixed at the close yesterday, choice was down .93 and select was up .51. Pork cutout values were up 1.13 on Tuesday. Thanks to all who joined the Monthly Allendale Ag Leaders Webinar last night instead of watching "The Voice."
Markets as of 5:10 AM
- Mar Corn -1 1/2
- Jan Beans -4 1/4
- Mar Wheat +5 3/4
- Feb Cattle +.20
- Feb Hogs +.72
- Mar Dlr -.22
- Mar S&P +3.25
- Jan Crude +.40
- Feb Gold +4.00
