Grain Markets Look For Friendly News
Dec 16, 2013
Good Morning! Paul Georgy with early morning comments for December 16, 2013 at 5:00 am.
Grain futures are lower on follow through selling from Friday and the lack of positive news.
Grain markets are faced with several issues this week. Trading volume is expected to get lighter as we approach Christmas week with a shortened session next Tuesday and markets closed a week from Wednesday. We have the issue of China turning back cargoes of corn and possible rejection of DDGs which indirectly creates competition for soybean meal. We will hear more talk from our government representatives as they go back home to their districts for the holidays.
The bill proposed by a bipartisan group of senators last week to eliminate the biofuels mandate will arouse more conversation and concerns of traders.
Weather conditions remain favorable for most of South America however Argentina is expected to be dry for the next week.
Farmers have no incentive to sell any cash grain before the first of year as futures prices work lower. Basis was steady on Friday.
The FOMC meeting results on Wednesday will be watched closely for any signs of tapering.
Technical traders will be keying off of the weak close on Friday in corn and wheat to keep the pressure on at least early in the week. March corn has support at 4.18 ½ while March wheat set new lows for the recent move overnight.
Soybeans were able to hold the 20 day moving average which now could provide near-tern support.
The livestock markets are struggling with weak demand for product as beef and pork prices slide. Choice beef was down 1.56 and select was up .39. Pork cutout values were down 1.15 on Friday. Cash cattle traded late on Friday at 131 which was steady to 1.00 lower than last week. The CME Feeder Index was 167.80. We would have to give the livestock a steady lower call for this morning’s opening.
Join us for the Monthly Ag Leaders Webinar which will be held at 8:00 pm on December 17, 2013. Get a wrap-up outlook for the year. Sign up today.
Markets as of 5:00 AM
- Mar Corn -3 3/4
- Jan Beans -6 3/4
- Mar Wheat -4
- Feb Cattle Steady-Lower
- Feb Hogs Steady-Lower
- Mar Dlr -.20
- Mar S&P +7.50
- Jan Crude +.45
- Feb Gold -5.90
If you have any questions on any of our material, give us a call at 800-262-7538 or email us at firstname.lastname@example.org