Heat on the Way for Next Week
Jul 18, 2014
Heat on the way for next week
Good Morning! Paul Georgy with early morning comments for July 18, 2014 at 5:30 am CDT.
Grain futures are mixed with old crop higher on tight supplies. Warmer weather is on the way next week. Some are trying to spin it as bullish other are suggesting it is what the crop needs to reach maturity.
8:00 AM Update - daily Morning Coffee commentary:
Cash corn basis was weaker on Thursday and farmer selling was light around the Midwest. The prices are unattractive for North Dakota producers where basis is 1.20 to 1.30 under September futures.
Ryan Martin, Allendale’s Chief Meteorologist will be giving the first presentation at the Ag Leaders Conference "Summer Update". You also can listen to his daily forecast by clicking here. His morning blog on weather is available as a FREE subscription. Review It today!
All work was at a standstill as multiple strikes paralyzed all grain exports from Argentina's Rosario export hub on Thursday. The Argentine grain inspectors in the agricultural export hub lifted their strike over wages due to a government request. However other unions are still on strike.
Funds bought a net 6,000 wheat contracts, were even in corn, sold 5,000 in soybeans on Thursday.
Argentine Agriculture Ministry says forecasts 2013/14 corn harvest is 33 mmt vs their June estimate of 32.1 mmt. They are looking for the 2013/14 soybean harvest to be 53 mmt vs June estimate of 54 mmt.
(Reuters) - An impasse between U.S.-based Monsanto Co MON.N and soybean buyers in Brazil over royalty payments on a new seed technology may complicate the country's sales of the upcoming oilseed crop.
Microsoft announced it will lay off nearly 18,000 people in the next 6 months. This equates to nearly 15% of its workforce as the new Microsoft CEO is taking the first step to building the right organization.
Pew Research Center says about 23.6% of people age 25 to 34 live with their parents, grandparents or both. That’s up from 18.7% in 2007, just prior to the global financial crisis and from 11% in 1980.
Cow slaughter continues to run 15 to 20% below a year ago levels due to excellent pasture conditions and profitability of cow-calf operation. Feeder cattle prices at record high prices are huge incentive for building cow herds.
Cash cattle traded in TX and CO at 155 and 157.50 respectively. Volume was light with no sales reported in KS. Beef values were mixed with choice down 1.01 and select up 1.38. The CME Feeder Index is 214.11.
Nearby lean hog futures closed below the 20 day moving average for the second time and found support at the 50 day average. A lower close today could accelerate the downward bias. The Pork cutout value is up 1.20.
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Markets as of 5:30 AM CDT
- Sep Corn -1 1/2
- Aug Beans +4 3/4
- Sep Wheat -5 1/4
- Aug Cattle -.27
- Aug Hogs -.55
- Sep Dlr +.02
- Sep S&P +1.00
- Aug Crude +.28
- Aug Gold -5.50
Chart of the Day
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