Weather Dominant Story For Grains
Jun 19, 2012
Good Morning! Paul Georgy with early morning comments for June 19, 2012 at 5:10 am. Corn and soybean futures are higher as weather stays dry. Most weather forecasts have taken out the rain through central Midwest which will mean more crop stress. Pop up showers will continue to be beneficial for those under and around those cells to the north of I80. Several ethanol plants in eastern Nebraska are splitting up production time to 2 weeks on and 2 weeks off or closing completely due to corn availability. This is causing cattle feeders to find corn to replace DDGs. Extreme weather conditions are causing other issues such as root worm in tasseling corn to spider mites in soybeans. USDA says the corn crop is in 63% G/E compared to 66% last week. Soybeans are 56% compared to 60% last week. The G20 will end their meetings today and likely without any significant decisions. The Fed meeting minutes, which will be released on Wednesday, should be ripped apart to find any indication of QE3. Trade analysts are adjusting their estimates and calculations for the June 29 planted acreage report and quarterly stock numbers. This should be a market mover, get positioned early as possible. Boxed beef prices were lower on Monday, choice down .51 and select down .51. Pork cutout was up .21 yesterday. Bull spreading in lean hog futures is due to tight supplies of market ready hogs. Don’t miss the Allendale Ag Leaders Webinar
scheduled for June 26. Get all the details at www.Allendale-inc.com
Markets as of 5:10 AM
Jly Corn +8 1/4
Jly Beans +25 1/4
Jly Wheat +9 3/4
Aug Cattle -.05
Jly Hogs +.05
Sep S&P +2.25
Sep Dlr -.17
Jly Crude -.10
Aug Gold +6.40
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Nelson Notes from the desk of Rich Nelson
The extended forecast has sharply changed. The entire Cornbelt is forecast for above normal temps and below normal precip. The worst areas will be Indiana, Ohio, and much of Illinois.
There is a significant risk of loss when trading futures and options contracts. This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named, and each investor should consider the appropriateness of trading on this information, based on their objectives. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. Past performance is not indicative of future results.