Profit Taking Ahead of Report
Oct 08, 2012
Good Morning! Paul Georgy with early morning comments for October 8, 2012 at 5:10 am. Grains are lower on profit taking and a stronger dollar. Today’s weekly harvest progress report should put corn harvest at 70% compared to the normal of 32% and soybeans could be 60% complete with 41% average. Traveling from northern Illinois to St Louis this past weekend we saw very little harvesting being done on Saturday but Sunday everybody was running in northern IL. Southern IL was at a standstill for several days due to too much rain. Corn left in the field looked rough in southern IL but soybean yields were hopeful even in some of the double crop fields. Talking to dairy framers in southern IL, I was surprised to learn that they felt they had enough old crop corn on hand to carry them through May of next year before using drought damaged 2012 corn. The USDA report on Thursday morning will be important to traders. Yield and harvested acres in corn seem to be the key numbers of interest. Weather forecasts for Brazil over the next 5 days have put in a little more moisture compared to last week. China will be back at work after last week’s holiday. Will they be in buying more soybeans? Livestock will be led by corn prices to start the week. Boxed beef values were weak on Friday. Choice was down 1.36 and select was down 1.45. Pork cutout was down .68. Livestock futures could start the day steady to lower.
Markets as of 5:10 AM
Dec Corn -6 1/2
Nov Beans -110 3/4
Dec Wheat +1 3/4
Oct Cattle Steady-Lower
Oct Hogs Steady-Lower
Dec Dlr +.26
Sep S+P -5.50
Nov Crude -1.10
Dec Gold -8.90
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Allendale Advanced Charts
Corn settled on a somewhat weak note today as it finished near the week’s lows of 7.46. This could be a pause in the recent strength or a sign that a corrective bounce is coming to an end.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The overnight purchase of 10,000 tonnes of Russian corn is quite something. Not only is it a departure from US origin, but it wasn’t even South American. This "first cargo purchase" is symbolic
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