Can Grains Remain Range Bound?
Jun 20, 2014
Good Morning! Paul Georgy with early morning comments for June 20, 2014 at 4:30 am CDT.
Grain futures are lower on risk-off attitude this morning. Corn and soybean futures are developing a range bound trade ahead of USDA Reports.
Expiration of July options later today could cause last minute adjusting going into the close. Weather forecast is favorable for the majority of the growing crops. Read Ryan Martin’s Weather Blog for more detail.
Export sales showed another 98,000 tonnes of old crop beans sold at a time when sales already exceed USDA expectations.
Weakness in soymeal is caused by a buildup in DDGs from reduced sales to China and aggressive ethanol production.
Kansas wheat harvest is under way. While yields are poor, protein levels are favorable.
Argentina raised its 2013/14 corn production from 31.1 mmt to 32.1 mmt in its monthly report. The USDA is holding Argentina production at 24.0 mmt.
Crop planting in Saskatchewan is 95 percent complete, ahead of the five-year average of 90 percent for this time of year.
Saint Paul River at the Mississippi River could reach flood stage by Saturday night.
Corn basis bids were steady to lower in light trade. Soybean basis bids were 5 to 15 cents lower at processors and elevators in IL and IN.
There is talk circulating that China may become an exporter of corn to support domestic prices and get rid of the government stocks bought over the last several years. It seems unlikely until new crop corn production is assured.
Economic news: The Tea Party win for House Republican Whip may indicate more fiscal turmoil ahead.
Hong Kong has agreed to lift trade restrictions on certain types of U.S. beef, a move that should boost exports to what is already the fourth-largest export market for U.S. beef and beef products. US Cattle-on-Feed will be released this afternoon. Trade estimates are On Feed 98.6, Placed 93.2 and Marketed 96.0% of a year ago. Beef values are higher with choice up .92 and select up 1.04. The CME Feeder Index is 204.82.
(Reuters) – U.S. veterinarians are warning that outbreaks of a deadly pig virus will climb this autumn after a summertime hiatus, likely killing another 2.5 million pigs over the next 12 months and amplifying an increase in pork prices. Pork cutout values are up 1.93.
Markets as of 4:30 AM CDT
- Jul Corn -1 1/2
- Jul Beans -6 1/4
- Jul Wheat -1 1/4
- Aug Cattle -.25
- Jul Hogs -.025
- Sep Dlr -.01
- Sep S&P +.75
- Jul Crude -.04
- Aug Gold -2.10
Chart of the Day
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