Will We See Hedge Pressure On The Close?
Oct 25, 2013
Good Morning! Paul Georgy with early morning comments for October 25, 2013 at 5:00 am. Grain futures are mixed in another quiet overnight session. Asian stock markets are lower as China’s credit crunch fuels concern.
November options expire today and it appears prices are migrating to 13.00 in November soybeans and 4.40 in December corn. Traders are struggling with friendly export sales reports and the probability that the November Supply and Demand report will show higher yields and larger ending stocks.
A USDA official said the November 8 crop report will include planted and harvested acreage adjustments that normally would be released in October. The USDA will be using the FSA planted acreage information.
There is talk that India may be dumping wheat on the export market at $260 due to poor storage facilities. The government is reluctant to sell it at a loss but it may be better than having nothing to sell.
Traders are looking for hedge pressure late in the session today as harvest should be in full swing this weekend. The weather should give producers an opportunity to accelerate harvest through middle of next week.
Hog futures rallied this week on talk of more PED virus problems for the hog industry. Technical buying was also cited as a supportive factor as Dec futures test recent highs. Pork cutout values were up .81.
Cash cattle were $2 to $3 higher this week. Cutout values were higher on Thursday with choice up .28 and select up .77. The CME Feeder index was 164.84.
Allendale’s Ag Leaders Webinar for October is scheduled for next Tuesday evening, sign-up today.
Markets as of 5:00 AM
- Dec Corn +1 1/2
- Nov Beans -1 1/2
- Dec Wheat +5
- Dec Cattle +.17
- Dec Hogs +.05
- Dec Dlr +.01
- Dec S&P -.75
- Dec Crude +.35
- Dec Gold -7.40
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