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The Allendale Wake-Up Call

RSS By: Paul Georgy, AgWeb.com

Paul Georgy serves as president/CEO of Allendale, Inc., a worldwide agricultural advisory and research firm that provides agricultural commodity price research and risk management alternatives for producers, major food companies, international corporations, foreign governments, and major news vendors.
 

Bull Spreading Supports Nearby Futures

Feb 22, 2013

Good Morning! Paul Georgy with early morning comments for February 22, 2013 at 5:05 am. Grains are higher with soybeans testing the $15.00 area. Private feed mills in China bought 240,000 of new crop US corn. Traders are waiting for the USDA’s yield projections which will be released today at the AG Forum in Washington DC. On Thursday they gave us their total production estimate for corn which was 14.530 billion bushels and soybeans 3.405 billion bushels. The USDA will fill us in on the rest of the balance sheet today. The weekly export sales numbers will be out at 7:30. Estimates are: corn 150 to 350 tmt, soybeans 300 to 600 tmt, soymeal 100 to 200 tmt, soyoil 10 to 30 tmt and wheat 400 to 600 tmt. Reuters reported fifty-nine ships were waiting to load grain at Santos port on Thursday versus 29 a year ago, citing data from SA Commodities/Unimar. At the other main grain port, Paranagua, 82 ships were waiting compared with 31 ships this time last year. The dockworkers strike today and Tuesday will cause more delays although they will only be halting work for 6 hours at a time. Trade is saying China booked up to 9 cargoes of US soybeans this week to fill immediate needs due to South American port delays. Moisture in the southern plains was enough of a catalyst to pressure an already technically weak wheat market. Bean basis was weaker on Thursday at the central Illinois processor while corn held steady. May corn futures has key support at 6.78 ½ while November soybean support crosses at 12.56 ¾. Old crop/New crop spreads have been a feature in the grain trade. March option expiration is today. Secretary Vilsack said today that the meat inspector’s furloughs would not be affected for several weeks after the March 1 federal budget cut deadline. Smithfield believes they can meet the requests China has for ractopamine-free pork. Boxed beef was mixed with choice up .04 and select down .33. Pork cutout value was down .57. Many agricultural markets are oversold. Don’t be surprised to see some short covering before the weekend. We are preparing for the Allendale Road Series 2013 meetings that will be held in Riverside, IA next Thursday and Friday sponsored by AgriGold. You can reserve your seat and find all the details at www.allendale-inc.com.
 
Markets as of 5:05 AM
  • Mar Corn    +3 1/4
  • Mar Beans   +18 1/2
  • Mar Wheat   +1 1/4
  • Apr Cattle  -.07
  • Apr Hogs    -.05
  • Mar Dlr     +.01
  • Mar S&P     +4.75
  • Apr Crude   -.14
  • Apr Gold    +2.00
 
Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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