Corn Set New All Time Highs
Aug 09, 2012
Good Morning! Paul Georgy with early morning comments for August 9, 2012 at 5:10 am. Grain futures are higher as we wait. Corn sets new all-time highs in overnight session. Tomorrow morning’s USDA Supply and Demand report is the focus story this morning. Traders are adjusting positions. The comments from clients are "if it is not bullish, it can’t be bearish." When attitude is heavily weighted with one bias we suggest to be prepared for the unexpected. Rain is in the forecast for a major portion of the Midwest for the next 48 hours. This moisture should be beneficial to the beans that are still alive. USDA will give us weekly export sales this morning at 7:30, the estimates are: corn 950 to 1,200 tmt, soybeans 350 to 450 tmt, soymeal 100 to 200 tmt, soyoil 15 to 25 tmt and wheat 450 to 550 tmt. Cash markets at the gulf are firm for soybeans due to recent sales announcements. Corn basis is termed as dull with light demand and supplies adequate because of early delta harvest. Ethanol production data was supportive only because it was greater than last week. The production was well below last year and below levels needed to meet USDA projections. There were 33 cattle deliveries on Wednesday after the sharp futures rally. Feedlots are asking 122 to 123. There were some packer bids showing up in Kansas at 116 late yesterday. Boxed beef was higher again on Wednesday with choice up 1.52 and select up 1.40. Pork cutout values were down .32. Lean hog futures have put in a strong technical performance in the August contract as we near last trading day. We expect market to be very sensitive to headlines going into the report tomorrow morning. Call your Allendale Rep with questions or check in with the Allendale Advisory Report on the web.
Markets as of 5:10 AM
Dec Corn +7
Nov Beans +6
Sep Wheat +6 1/4
Aug Cattle -.05
Aug Hogs +.20
Sep S&P +.50
Sep Dlr +.17
Sep Crude +.23
Aug Gold -.30
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Nelson Notes from the desk of Rich Nelson
Technically, ethanol production did rise in the latest week from 809,000 to 817,000 barrels per day. However, compared with last year the pace actually worsened. In order for us to meet USDA’s hopes for old crop corn for ethanol, production now has to run 1% under last year.
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.
