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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.

Quiet Trade Gives Way to Profit Taking

Jan 17, 2013

Good Morning! Paul Georgy with early morning comments for January 17, 2013 at 5:10 am. Grain futures are lower on profit taking. A South Korean buyer passes on a wheat tender saying prices were too high. Demand for corn has not been in line with USDA usage numbers. The EIA ethanol production was the lowest we've seen this year. Compared to last year production was 17% less and USDA’s target is 10% less than the 2011/12 marketing year. Processors have pushed bids in the Midwest as gulf bids slip due to seasonal demand slowdown and open navigation on the Mississippi. USDA’s weekly export sales will be released at 7:30 this morning. Estimates are: corn 150 to 250 tmt, soybeans 750 to 950 tmt, soymeal 100 to 150 tmt, soyoil 15 to 25 tmt and wheat 450 to 650 tmt. Corn sales are likely to be low as the price of US corn is still $28 to $30 higher than South America. Soybean traders have been talking this week that China has purchased 30 cargoes of US beans since the USDA report last Friday. We have no confirmation of these sales yet. US wheat was competitive in the world trade until the recent sharp rally. Funds were light volume players yesterday as they are estimated to have bought 5,000 corn, 8,000 soybeans and 1,000 wheat contracts. Cash cattle traded in the southern Plains yesterday at the 124 to 125 range compared to last week's 125 to 128. This weaker trade caused futures traders to give up longs and push prices into technical sell points. Higher corn price adds fuel to liquidation attitude. Choice beef was up .37 and select was up 1.28. Pork cutout values were up .49 on Wednesday. Allendale will be releasing price outlooks for 2013 at next week’s Ag Leaders Conference, sign up today!
Markets as of 5:10 AM
  • Mar Corn    -1 3/4
  • Mar Beans   -4
  • Mar Wheat   -3 3/4
  • Feb Cattle  -.42
  • Feb Hogs    +.12
  • Mar Dlr     -.11
  • Mar S&P     +.25
  • Jan Crude   +.23
  • Feb Gold    -.90
Contact Allendale: 800-262-7538

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