Good Morning! Paul Georgy with early morning comments for June 27, 2014 at 4:30 am CDT.
Grain futures are lower on risk-off selling in all commodities.
Grain traders are adjusting positions ahead of the "Biggest Grain Report of the Year" on Monday, first notice day for the July contracts on Monday, the end of a month and end of a quarter and a holiday shortened week ahead.
Livestock traders have a Quarterly Hogs and Pigs Report due to be released at 2:00 pm today. Grain traders will be looking at this afternoon’s report to get a prospective of corn and meal usage.
With all the rain we have seen throughout the cornbelt, this week’s US Drought Monitor suggests not much change from last week in the dry to severe dryness areas of the southern plains.
Kansas Wheat Commission and the Kansas Association of Wheat Growers are reporting Kansas wheat harvest is underway. Yields vary by region with overall range 8 to 60 bushels per acre. A farmer in the Scott City area has had over 6.5 inches of rain in June which has doused his chance of harvesting 8 to 15 bushels per acre.
Reuters trade estimate survey for Monday’s USDA Planted Acres Report:
Corn Soybean All Spring Durum
Wheat Wheat Wheat
Average trade estimate 91.725 82.154 55.818 11.860 1.790
Highest trade estimate 92.200 84.000 57.000 12.200 1.900
Lowest trade estimate 91.000 80.500 54.800 10.500 1.694
USDA March estimate 91.691 81.493 55.815 12.009 1.799
USDA 2013 final 95.365 76.533 56.156 11.596 1.470
The U.S. hemp industry is back. A provision in the 2014 farm bill signed by President Obama on Feb. 7 removed hemp grown for research purposes from the Controlled Substances Act, the main federal drug law. American farmers have been watching as Canadian farmers clear huge profits from hemp: $250 per acre in 2013. By comparison, South Dakota State University predicts that soy, a major crop, will net U.S. farmers $71 per acre in 2014.
(Reuters) – The U.S. Food and Drug Administration is opening the door for livestock feed manufacturers and pharmaceutical companies to roll out nanotechnology products that could make animals gain weight faster or absorb medications more quickly.
Hogs and Pigs Report Estimates:
Ranges Average Mln head
All hogs June 1 96.0-98.9 97.1 63.200
Kept for breeding 101.0-102.5 101.8 5.990
Kept for market 95.5-98.6 96.8 57.310
Under 50 lbs 95.4-101.4 98.2
50-119 lbs 94.0-99.5 96.2
120-179 lbs 92.3-96.7 95.3
Over 180 lbs 95.5-97.5 96.5
Farrowings 101.9-105.0 102.8
Pigs per litter 93.4-98.0 95.3
Pig crop 95.7-99.9 97.7
June-August 102.0-102.7 102.2
Sept-November 101.5-103.0 102.5
Weight breakdown should be an important part of this report as trade will be looking for a confirmation of supply. Pork cutout value is down 1.86.
Cash cattle traded as high as 155.50 on Thursday as packers need inventory to meet product commitments. Cattle futures set new highs for the third day in a row. Look for profit taking ahead of the weekend.
Average steak prices from the weekly grocery-store ads in Chicago are $8.49 per pound compared to $5.89 last week and 4.43 per pound last year. Beef cutout values continue to the charge higher with choice up .49 and select down .61. The CME Feeder Index is 211.23.
Markets as of 4:30 AM CDT
Jul Corn -1 1/4
Jul Beans -2 1/4
Jul Wheat -5
Aug Cattle -.50
Jul Hogs -.25
Sep Dlr -.05
Sep S&P -2.50
Aug Crude +.00
Aug Gold -1.10
Chart of the Day
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