Grains are Higher to Start the Week
Mar 11, 2013
Good Morning! Steve Georgy with early morning comments for March 11, 2013 at 5:05 am. No big surprises from the USDA on Friday. #Corn and# bean ending stocks were kept unchanged from last month but wheat stocks were increased. The bulls had a reason to jump back on the long side of the corn. The trade expected to see increased ending stocks up to 649 million but we can only get an unchanged 632 million. The fact is that we still have tight stocks and should be supported on pull backs. New crop corn will still be influenced by the acreage report at the end to the month. Beans are showing strength after a slightly negative report. Ending stocks remain at a tight 125 million. Talks continue to escalate in Brazil between the dock workers and the government. They already have a backup of barges in the ports and another strike would only make things worse. This should keep our exports sales strong in the US and should keep some support under the beans on setbacks. #Wheat has a little different look at this point. The trade was looking for an increase of 22 million bushels and USDA increase carryout by 25 million. Global ending stocks rose from 176.73 billion to 178.23 billion. The point I am trying to make here is that wheat does not have tight ending stocks like corn and beans. Wheat will continue to follow the corn market until the bulls can find a good reason to break away. Good rains fell across the Corn Belt this past weekend and continue to help the soil moisture problem from last year’s drought. The next major system to move through is March 19th-21st. Thank you to everyone that helped with this year's Planted Acreage Survey. We will be releasing the results by email on March 15.
Markets as of 5:00 AM
- May Corn +4 1/4
- May Beans +6
- May Wheat +1 1/2
- Mar Dlr +.02
- Mar S&P - 2.00
- Apr Crude -.25
- Apr Gold +2.10
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