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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.

Farmers Hold Key to Supporting Grain Prices

Jun 21, 2013

Good Morning! Paul Georgy with early morning comments for June 21, 2013  at 5:00 am.  Grains futures are lower as outside markets recover slightly from yesterday’s sell-off. The moving of money is having its impact on grain prices. The hawkish talk by Fed Chairman Bernanke has caused traders around the world to move money out of commodities and away from investments which normally would be a hedge against inflation. The metals markets and stock market received the brunt of the selling on Thursday. The grain complex is retreating from the early week rally as the weather forecast are a little less hot with an increased chance of showers across the Midwest. Farmers hold the wild card to price movement. The uncertainty of harvesting a crop, with last year still very clear in their mind, allows their mindset to be that of a patient seller. However, when the calendar changes to July and corn begins to tassel it will be easier to clean out the bins and price new crop grain. The risk to producers is that you don’t want to be the last man standing when that happens. Basis will deteriorate quickly as well as flat price. The volatility we have seen this past week certainly is evidence of how quickly these markets can change direction. Factors the market is considering as we close out the week are: the Cattle-on Feed this afternoon, the Planted Acreage and Quarterly Stock report next Friday, and the Quarterly Hogs and Pigs Report next Friday afternoon. Managing your risk through this turbulent time is extremely important. Call your Allendale Representative to discuss your alternatives. Sign up for the June Allendale Ag Leaders Webinar scheduled for Tuesday night. Cash cattle trade is slow with a standoff likely until the Cattle-on-Feed report this afternoon. Choice beef was up .32 and select up 1.19. The feeder index was up .18 to 136.73. Chicken has reaped the benefit from high beef and pork prices as retailers and fast food restaurants have featured poultry products. Pork cutout values were down .25 on Thursday. Lean hog futures are overbought technically however futures are under cash hogs by several dollars. Have you signed up for the free midday text from Allendale?

Markets as of 5:00 AM

  • Jul Corn    -6 1/4
  • Jul Beans   – 1/2
  • Jul Wheat   -3 1/4
  • Aug Cattle  -.15
  • Jul Hogs    -.40
  • Sep Dlr     -.12
  • Sep S&P     +12.75
  • Aug Crude   +.56
  • Aug Gold    +9.30


View Today’s Chart of the Day

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