Normal Fall Weather Halts Harvest
Nov 06, 2013
Good Morning! Paul Georgy with early morning comments for November 6, 2013 at 5:00 am. Grain futures edge higher as a weather system drives farmers from the fields. Talk of export business is providing support although the expectation of negative numbers from the USDA limits any rallies.
Weather forecasts are for normal Fall, wet and cold, conditions for the next few days are followed by drier, warmer conditions. Argentina is getting rain where they needed and Brazil continues with soybean plantings.
Traders are discussing recent newswire polls that put corn yield under 159 bushels per acre. Some think that USDA yield and total production estimates could lead to nothing but a bearish report. Likely a reason for limited strength before Friday’s report.
(Reuters) – The trustee of MF Global’s defunct brokerage received approval from a bankruptcy judge on Tuesday for a plan that will repay its former commodity trader customers in full.
The Goldman roll will begin on Thursday as well as the DOW roll. Index funds are rebalancing which means they are believed to be adding to long positions in corn.
South Korea and Egypt are tendering for wheat on the world market.
Yesterday’s USDA hog slaughter was 436,000 which was the largest work load in almost a year. Pork cutout values were down 1.08 on Tuesday. Cash hogs are down over $5.00 in the past week.
Cattle slaughter is about 12,000 head below last week’s level. Normally, some of this drop in production is made up by cow slaughter. However cow slaughter over the past 4 weeks is 10% less than last year. Choice beef was down .11 and select was down 1.08 yesterday. The CME Feeder Index is 164.63 up .11.
Markets as of 5:00 AM
- Dec Corn – 1/4
- Jan Beans +3 1/4
- Dec Wheat +3 3/4
- Dec Cattle -.00
- Dec Hogs -.37
- Dec Dlr -.16
- Dec S&P +10.00
- Dec Crude +.66
- Dec Gold +10.20
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