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The Allendale Wake-Up Call

RSS By: Paul Georgy, AgWeb.com

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.
 

More Of The Same For 9 Days Now

Feb 13, 2013

Good Morning! Paul Georgy with early morning comments for February 13, 2013 at 5:10 am. Grains are lower even with bargain hunters supporting prices early in the session. Talk of major funds liquidating positions in agriculture markets had been a huge catalyst of selling pressure in recent sessions. However, at yesterday's close, corn futures were down 8 days in a row with a price decline of 43 cents. Since last week’s highs soybeans and wheat have dropped .61 and .21 in value. Technical indicators are oversold which suggests when funds are through with their waves of selling, a correction should be in order. Technical damage to charts and without fresh fundamental news we would have to believe a rally back to the 200 day moving average will be met by sellers.  Funds net sales on Tuesday were estimated at 10,000 corn contracts, 5,000 wheat, and 6,000 soybeans. Cash bids improved along the IL River as farmer selling was nil. Trading volume should improve today as South American traders return to work. Thursday’s Export numbers and Friday’s NOPA crush data will be watched closely. Port delays in South America should provide a reason for buyers to look to the US in the near term however South Korea excluded the US from a corn tender overnight. Was yesterday the final flush in the cattle futures? USDA reported that beef exports in December were 14% under the previous year. That was worse than November’s -11% and October’s -3%. There were reports that cattle traded in the South at 123 yesterday. Boxed beef was higher with choice up .73 and select up .15. Feeder Cattle Index was down .86 to 143.96. USDA’s pork export numbers for the month of December showed a troubling trend. October exports ran 2% over last year and November was 8% lower. The new numbers, for December, were 14% lower than last year. Cash hogs have been under pressure the last few days. Pork cutout was up .93 on Tuesday. If you are in the Watertown South Dakota on Monday we would like to have you join us for an outlook meeting sponsored by Legend Seed. Please details at www.allendale-inc.com.

 

Markets as of 5:10 AM

  • Mar Corn    -6 1/2
  • Mar Beans   -14
  • Mar Wheat   -6 1/2
  • Apr Cattle  -.17
  • Apr Hogs    -.17
  • Mar Dlr     -.04
  • Mar S&P     +1.50
  • Mar Crude   +.10
  • Feb Gold    -1.00

 

Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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