Does Breaking Technical Support Mean a Weak Close?
Sep 20, 2013
Good Morning! Paul Georgy with early morning comments for September 20, 2013 at 5:00 am. Grain futures are lower as traders see a dry week ahead and harvest should get into full swing. Commodity markets are lower across the board as funds take a risk-off attitude.
Corn and soybean basis are steady as recent rains have slowed harvest. More rain is expected over the next 24 hours but then clearing from west to east for harvest next week.
Technical support in November soybeans was taken out overnight. A close below 13.31 could activate more selling on the close today.
Spreading by funds has been a major feature in the grains. It is estimated funds bought 5,000 corn and 4,000 wheat while selling a net 5,000 soybeans.
The US House passes a bill to cut food stamps by $40 billion which Obama said he will veto if the cut was anything more than $10 billion.
Argentina officials cut the wheat production area by .5 million hectares. Corn plantings are expected to be down 6.6% from last year.
Harvest yields that are being reported from early corn and soybean harvest have producers pleased with the results.
Cash cattle markets remain at a standstill. Beef cutout values were mixed with choice down .28 and select up .39. Cattle traders may look for some evening up ahead of this afternoon Cattle on Feed Report. Trade estimates are On Feed 93.4%, Placed 91.7% and Marketed 95.3% of a year ago.
Market hogs were higher in IA-MN yesterday but futures were lower. Funds were taking profits on the long hog/short cattle spreads they have put on the over last few weeks. Pork cutout values were down .22 on Thursday.
Allendale’s September Ag Leaders Webinar is set for September 24th, Tuesday at 8:00 PM
Markets as of 5:00 AM
- Dec Corn -1 1/2
- Nov Beans -14
- Sep Wheat -4 1/2
- Oct Cattle -.05
- Oct Hogs -.90
- Dec Dlr +.02
- Dec S&P -.50
- Oct Crude -.23
- Oct Gold -11.50
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