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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.

Spreaders Set Sights On USDA Report

Mar 06, 2013

Good Morning! Paul Georgy with early morning comments for March 6, 2013 at 5:05 am. Grains are lower on profit taking after recent rally. Bull spreading remains the focus as tight cash holding by farmers and end-user demand play tug-o-war with prices. At what price will producers release grain? At what price will processors become aggressive buyers? The announcement of soybean sales by USDA yesterday has traders talking that China switched #soybean purchases from Santos, Brazil to the PNW. Weather in South America has become a nonevent as a market mover. US forecasts for rain in the plains has put pressure on the #wheat complex. The price relationship between #corn and wheat now has the price advantage for wheat to be used in livestock rations. There are several reports the trade will be watching as we finish out the week. Today the EIA will release ethanol production; Thursday morning we will get the weekly export sales and CONAB will gives us their estimates of corn and soybeans production in Brazil. Friday at 11:00 CST the Monthly USDA Supply and Demand will be watched closely. The trade is expecting an increase in corn ending stocks and a tighter soybean ending stocks. The CME announced yesterday their new trading hours for grains expect to take effect April 7. The markets will open at 7:00 pm CT and trade electronically through 7:45 am CT. They will close for 45 minutes then the open outcry and electronic markets will open at 8:30 am CT and trade until 1:15 pm CT. Tom Vilsack told the House Agriculture Committee that all of the nation’s 8,400 meat inspectors would be furloughed for 11 to 12 days each. The furloughs would be concentrated in the last three months of the fiscal year (July, August, and September). This news should not impact the nearby supply or demand of meats. Boxed beef prices jumped again on Tuesday. Choice was up 2.91 and select was up 3.44. The feeder index was up .19 to 139.91. Pork cutout values fell 1.79 on Tuesday. We look for choppy Ag markets going into Friday’s report.

Markets as of 5:05 AM

  • May Corn    -2 1/2
  • May Beans   -5 1/2
  • May Wheat   -1
  • Apr Cattle  -.30
  • Apr Hogs    -.65
  • Mar Dlr     +.08
  • Mar S&P     +4.75
  • Apr Crude   -.25
  • Apr Gold    -.90

Contact Allendale: 800-262-7538

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