Spreads Dominate Volume Ahead of WASDE
Jul 09, 2014
Good Morning! Paul Georgy with early morning comments for July 9, 2014 at 5:30 am CDT.
Grain futures are lower as traders wait for USDA reports.
Cash bids firm up slightly due to lack of farmer selling. The sell-off in futures has farmers waiting for a bounce to clean out bins for the new crop grain. However, weather forecasts are not providing any friendly bias. The cool temps and plenty of moisture is ideal for corn pollination.
Trade average estimates for Fridays report are adding more corn and soybeans to the ending stocks. Call your Allendale Broker and ask for the 2009 corn chart, it may be giving us a road map for price movement during a big crop year.
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Reports out of the FSU are suggesting wheat yields in the south of Russia were 18% higher than last year. Kazakhstan wheat production is expected to rise due to good weather conditions.
FOMC meeting minutes released today will be scrutinized for any hints on the timing of the Fed’s first rate hike.
The new May beef trade numbers were disappointing. Beef exports ran 4% over last year. While that is still a very good pace, it is a slower pace than the 5% and 15% increase posted in the previous two months. Beef imports were very strong at 20% over last year. Beef cutout values were firmer on Tuesday as Choice was up 1.80 and select was up 1.39. The CME Feeder Index is 213.85.
Hog markets have some slightly negative news to digest. The May US pork exports totaled 430.836 million lbs. That was almost equal to last year and below the previous two months which showed gains of 22% and 10% respectively over the previous year. Imports were also disappointing as they ran 15% over last year in May. Pork cutout values were down .19.
Markets as of 5:30 AM CDT
- Sep Corn -2
- Aug Beans -12 1/2
- Sep Wheat -2
- Aug Cattle +.42
- Aug Hogs +.25
- Sep Dlr +.01
- Sep S&P +.50
- Aug Crude +.00
- Aug Gold +8.50
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