Markets Range Bound Ahead Of USDA Report
Sep 11, 2013
Good Morning! Paul Georgy with early morning comments for September 11, 2013 at 5:00 am. Grain futures are quiet in narrow trading ranges on the 12th anniversary of the 9/11 attacks. The CME Group in Chicago will have moments of silence from 7:18 a.m. to 7:19 a.m. on the financial floor and 9:28 a.m. to 9:29 a.m. on the agricultural floor.
This report is coming to you from Mankato, MN. During the 7 hour trip yesterday I saw all types of maturity on corn and soybeans including one field of corn in west central WI that was starting to tassel. There were a few fields of soybeans in southern MN which were not tall enough to close the row. On the other hand, I saw some of the best looking soybeans in MN. It must be noted that an early frost would have a considerable impact on both corn and soybean yields in the Mankato area. Tomorrow I will be visiting our branch offices in Bird Island, MN and Wahpeton, ND on my way to the "Big Iron Show" in Fargo, ND. Stop by the RRFN booth on Thursday afternoon.
Traders are concerned about what the USDA might say on the September Crop Production Report. Old crop soybean stocks and new crop yields are the most anticipated numbers. Allendale does not believe the USDA will adjust acres on the September report; they will likely wait until Oct.
Corn yields are estimated by the trade at 153.9, down from the 154.4 USDA projected in August.
Basis levels for corn continue to slide as more processors reduce bids by 35 to 50 cents. The premiums have given producers an incentive to harvest corn with high moisture levels. However farmer selling has come to a halt with basis deteriorating. Producers harvesting early planted corn are reporting yields of well over 200 bushels per acre.
Argentina is ready to raise their export limits by another 3 million tonnes. China is expected to reap a record corn crop this year.
The US Grain Council says Taiwan has signed an agreement to buy 5 million tonnes of corn and 500,000 tonnes of distiller grains in 2014 and 2015.
Lean Hog futures are higher as pork product strength provides support. Pork cutout values were up .85 on good load volume. Cattle futures are waiting for something to ignite some buying interest. Tight fed cattle supplies should be getting tighter as we move into the 4th quarter. However, we are in a seasonal period of lower beef prices. Beef cutout values were lower with choice down .60 and select down 1.12. The feeder index is 156.17.
Markets as of 5:00 AM
- Dec Corn + 1/2
- Nov Beans +3
- Sep Wheat +2 1/4
- Oct Cattle +.40
- Oct Hogs +.32
- Dec Dlr -.01
- Dec S&P -1.50
- Oct Crude +.27
- Oct Gold +.60
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