The Allendale Wake-Up Call

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.
 

 

Heavy Rains Support Beans

Jun 03, 2013

Good Morning! Paul Georgy with early morning comments for June 3, 2013 at 5:10 am.  Soybeans lead the rally at the CME. Weekend rains will delay planting of soybeans and the forecast is also supportive to start the week. I made a trip to southern IL over the weekend where they had a total of 6 to 8 inches of rain out of 2 rain events that moved across the area in less than 24 hrs. There was a lot of flooding Saturday morning and by Sunday afternoon much of the water had receded and the corn looked surprisingly good. Southwest IL had most of their corn planted but very few soybeans. Much of the Midwest will be out of the field for several more days and even without any additional rain. Weather forecasts will be watched closely this week by soybean traders. This afternoon traders are looking for only a slight increase in planting progress last week in both corn and soybeans. Spreads between old crop and new crop will create volume this week as several major funds will be rolling out of the July contract. Managed Money increased long positions in corn by 43,928 contracts last week. They increased net long positions in soybeans by 21,465 contracts and decreased short positions in wheat by 4,280 contracts. Despite larger supplies of market ready cattle last week and lower wholesale beef prices, cash cattle was able to hold steady at $124. Boxed beef was lower on Friday with choice down 1.90 and select down 1.89. The beef industry needs some seasonal cookout weather in the metropolitan areas to help retail clearance. The Feeder Index was down .86 to 130.81 on Friday. Since the start of May we have seen hog slaughter run 0.4% below last year. This is almost 3% lower than what the March Hogs and Pigs report would have implied for this time period. Pork cutout value was down .72 to close out the week. Contact your Allendale Representative for more details or subscribe today to the Allendale Advisory Center.

Markets as of 5:10 AM

  • Jul Corn    +5
  • Jul Beans   +22
  • Jul Wheat   +5 1/2
  • Jun Cattle  Steady-Lower     
  • Jun Hogs    Steady-Higher
  • Jun Dlr     -.30
  • Jun S&P     +3.50
  • Jul Crude   +.09
  • Jun Gold    +3.20

 

View Today’s Chart of the Day

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