Rains Missed Some Areas, Forecast Drier
Jul 28, 2014
Good Morning! Paul Georgy with early morning comments for July 28, 2014 at 5:30 am CDT.
Grain futures are higher on strong demand for new crop soybeans after the recent selloff.
8:00 AM Update - Morning Coffee Commentary:
The forecast for a dry spell is supporting short covering in corn and soybeans. It now looks like it will be late in the 6 to 10 day period before good moisture coverage. Check out Ryan Martin’s weather to stay on top of any changes in the forecast.
Reuters poll of analysts puts 2014 US corn yield estimate at 170.5 bushels per acre verses USDA’s last estimate of 165.3 bushels per acre.
Safras pegs 2015 Brazil soy crop at 94.5 mmt vs. USDA 91 mmt and 87.5 mmt last year.
Trader’s view on US crop ratings this afternoon for corn and beans are unchanged to higher after last week’s 76% and 73% respectively.
Russia’s ban of Ukrainian milk and milk products takes effect today.
Dry weather conditions in Russia are starting to impact the production of soybeans and sunflowers.
Australian wheat producers are becoming concerned about dryness and the development of El Nino. Producers in New South Wales and Queensland are already dealing with sporadic showers and low subsoil moisture.
Tyson Foods plans to close 3 plants in Cherokee, Iowa; Buffalo, New York; and Santa Teresa, New Mexico during first half of calendar 2015. Age of plants, renovation costs and product demand changes are cited as the reason for closure.
USDA says July 1 all Cattle on Feed were 98.0% (trade est. 98.3%), June Placed 94.0% (trade est. 96.6%), and June Marketed 98.0% (trade est. 98.0%). The Cattle on Feed is slightly supportive for today’s cattle opening. Beef values higher on Friday with choice up 1.82 and select up 1.49. The CME Feeder Index is 214.13.
Pork cutout values were up .48.
Markets as of 5:30 AM CDT
- Sep Corn +2 1/2
- Aug Beans +6 1/4
- Sep Wheat -4 1/4
- Aug Cattle Steady-Higher
- Aug Hogs Steady-Higher
- Sep Dlr -.02
- Sep S&P -1.25
- Sep Crude -.56
- Aug Gold +1.60
Chart of the Day
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