Traders Getting Ready for Next Week's Reports
Mar 20, 2013
Good Morning! Paul Georgy with early morning comments for March 20, 2013 at 5:00 am. Grains futures are higher on short covering and firmer European markets. More spreading of old crop versus new crop is keeping markets somewhat active ahead of next week’s USDA Prospective Plantings and Quarterly Stock reports. Traders are getting positioned for a friendly stocks number as cash markets are strong. Lack of farmer movement is driving nearby futures. The deferred contracts struggle with increased acres of soybeans and near year ago levels in corn. Allendale data suggests more acres planted in the 3 major crops of corn, soybeans and wheat. We have been suggesting the key to 2013 production is not planted acres, it is harvested acres and yield. Tomorrow the weekly export data from USDA will be watched closely. Weather in South America is ideal for crops to complete maturity. Traders are chattering about a slow start to spring planting and the need for an early harvest to meet demand needs. Weather is a bit supportive as the forecast is cold and wet for a few more weeks. The Cyprus government is getting a lot of pressure from Russia concerning bank deposit tax. Things have likely quieted down for the EU for a while. Livestock markets are where the action is. How much lower can cattle and feeders go? More liquidation by producers and margin clerks are driving futures. Cash cattle traded in the north at 124 and 124.50. Boxed beef values were lower again. Choice was down 1.66 and select was down .06. Lean hog futures are seeing liquidation as well. Pork cutout value was down 1.14. Meat demand is being stifled by tax increases and budget cuts. Get all the details by subscribing to the Allendale Advisory Report at www.allendale-inc.com.
Markets as of 5:00 AM
- May Corn +2 3/4
- May Beans +8 1/2
- May Wheat +8 1/2
- Apr Cattle +.05
- Apr Hogs +.05
- Jun Dlr -.20
- Jun S&P +5.25
- Apr Crude +.48
- Apr Gold -.70
Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com
