Traders Cautious Going Into Report Day
Jan 07, 2014
Good Morning! Paul Georgy with early morning comments for January 7, 2014 at 4:45 am.
Grain futures are lower. Trading volume remains light as traders appear to be cautious going into the USDA reports on Friday. The USDA will be releasing the Quarterly Stocks, Crop Production, Supply and Demand and the Winter Wheat Seeding Reports. It is likely the Quarterly Stocks could have the most impact.
Stay warm and join me at the Northern Illinois Farm Show in DeKalb. The presentation starts at 9:00 am tomorrow. We will take a look at the world production prospects as well as a 2014 US Outlook. You also will take home some strategies going into Friday’s Reports.
The majority of Argentina’s crop producing area is fine however there are a few dry areas in the North and South. The dry areas may be limited to 20% or less.
DDG values appear to have found a price from which they can bounce after the $90 per tonne break since Christmas.
The CFTC Commitment of Traders Report showed Managed Funds increasing short positions in corn by 7,018 contracts and in wheat by 1,636 contracts. They reduced long positions in soybeans by 17% or 29,040 contracts.
Fund rebalancing is due to start tomorrow. Traders are estimating the index funds will be covering approximately 90,000 corn contracts and nearly 20,000 bean contracts before they are done. Many think their buying may take place on the close each day until they complete the task.
Cash basis was steady as cold and snow limited movement of grain.
Feeder cattle futures post new contract highs as firmer beef prices support live cattle futures. Beef cutout values were higher with choice up 1.21 and select up 2.28. The CME Feeder Index is 170.54.
Live hog weights continue to climb as the past 2 holiday shortened work weeks have backed up some numbers. Starting this week, the extreme cold is stalling movement of hogs as producers are keeping their facilities buttoned up. Pork cutout values were up .09.
Mark your calendar and sign up for the Allendale Ag Leaders Conference on January 28, 29 and 30. We will deliver it directly to your home.
Markets as of 4:45 AM
- Mar Corn -1
- Jan Beans -8
- Mar Wheat -2 3/4
- Feb Cattle +.37
- Feb Hogs -.45
- Mar Dlr +.01
- Mar S&P +6.50
- Feb Crude +.36
- Feb Gold -.80
Chart of the Day
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