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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.

Lack Of News Turns Focus Back To Demand

Jan 24, 2013

Good Morning! Paul Georgy with early morning comments for January 24, 2013 at 5:00 am. Grain futures are lower on profit taking and demand worries. Traders struggle to find new bullish news to drive markets higher. The weather in Argentina is not ideal for increasing crop production over the entire growing area. However forecasts now have 50% of the growing area getting rain with a few short spells of heat flare-ups. Ethanol production will be out this morning and export sales are pushed back until tomorrow due to the holiday. Traders are concerned about demand for corn ahead of these reports. There is more talk of China buying US beans for immediate delivery due to their positive crush margins. Funds sold an estimated 9,000 contracts of corn on Wednesday. They also sold 3,000 wheat contracts and 6,000 soybean contracts. The University of Illinois Ag Econ Department released an update to their profitability projection for 2013 which showed corn more profitable than soybeans on highly productive land. CME is taking comments on the extended trading hours they implemented last May. Flat price comparisons of corn to soft red wheat in the southern plains has feeders looking at using wheat for feed. Those attending Allendale’s conference this weekend will get the facts and outlooks for corn, beans, wheat and livestock. They will take home strategies for 2013. Cash cattle traded at 122 which are 2 to 3 dollars lower than last week. Cattle futures came under pressure when talk circulated that Russia was considering banning US beef and Pork. Technical indicators show oversold in cattle and feeders. Feeder Cattle Index was down 2.72 to 145.43. Boxed beef was lower with choice down .81 and select down 1.00. Pork cutout values were up .22.
Markets as of 5:00 AM
  • Mar Corn    -4
  • Mar Beans   -13
  • Mar Wheat   -2 3/4
  • Feb Cattle  -.15
  • Feb Hogs    +.42
  • Mar Dlr     +.12
  • Mar S&P     -3.00
  • Mar Crude   +.27
  • Feb Gold    -9.00
Contact Allendale: 800-262-7538

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