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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.

Old Crop Corn Leads Charge

Apr 12, 2013

Good Morning! Paul Georgy with early morning comments for April 12, 2013 at 5:05 am. Grain futures are higher.  Spreaders came back into the corn and soybean markets in a big way yesterday. The estimate is 65% of the volume was spreading yesterday. The trade seems to have figured out that old crop supplies are tight. Export sales data was good for soybeans while corn exports remain dismal. Domestic demand for corn remains strong where ethanol margins are positive.  The active weather patterns forecast for the next 10 days is also supportive to the bull spreads as traders want to be long the contracts where the supplies are the tightest. As we have mentioned, planters have been rolling in the southern cornbelt ahead of yesterday’s rains. Monday’s planting progress will be key information for next week’s price trends. The frost damage on wheat will take some time to assess real losses. China is likely to be interested in more US wheat on price setbacks. Rumor of China buying old crop soybeans out of the PNW continues to circulate in the trade, however there has been no confirmation. US wheat exports could get a boost from the Brazilian government waiving the 10% import tariff on up to 1.0 million tonnes. Brazil is the largest South American wheat importer. The CME is changing margins on spreads; check with your Allendale Broker for details. There were no cattle deliveries again on Thursday. Cash markets had light volume trade on Thursday at 127. The outside markets are providing some headwinds this morning as the dollar is a bit stronger. Boxed beef prices continue to slide, choice was down .80 and select down 1.58 on Thursday. Pork cutout value was down .03. The feeder cattle index was 139.28. Subscribe today to the Allendale Advisory Report.

Markets as of 5:05 AM

  • May #Corn    +6
  • May #Beans   +10 3/4
  • May #Wheat   +7 1/2
  • Jun #Cattle  -.12
  • Jun #Hogs    +.15
  • Jun Dlr     +.19
  • Jun S&P     -3.75
  • May Crude   -1.07
  • Jun Gold    -19.10


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