Dry And Hot, Say No More
Aug 27, 2013
Good Morning! Paul Georgy with early morning comments for August 27, 2013 at 4:45 am. Grain futures are lower as they back and fill after yesterday’s sharp rally.
Allendale’s Ag Leaders Webinar for August will be held this evening. Our guest this month will be Brad Rippey, a USDA Meteorologist who is involved with the monthly USDA Supply and Demand Report lockup.
Not much to say about market influencing factors this morning other than weather. Market participants are watching weather forecasts very closely. The Euro and GFS models are suggesting the ridging pattern may be backing out to the west allowing some moisture into the northern cornbelt. Amounts of rainfall would be around .25 to .50 inches and temps stay above normal for the 10 to 15 day period.
Crop conditions report yesterday afternoon showed corn at 59% G/E compared to 61% last week and 57% for the 5 year average. Soybeans were 58% G/E compared to 62% last week and 57% for 5 year average. As a comparison if you take out 2012 (because of extreme drought) and use the 5 previous years an average G/E would be 64% for corn and 62% for soybeans.
Funds were huge buyers on Monday. Estimates are that they were net buyers of 30,000 corn contracts, 23,000 soybean contracts and 7,000 wheat contracts.
Cash basis was mostly steady for corn except for a central IL processor who dropped corn basis by .50. Soybean basis was down .25 in old crop and down a few cents in new crop. Elevator operators did see a pick up new crop sales yesterday.
Boxed beef was lower on Monday with choice down .39 and select up .05. The CME Feeder Index was down .70 to 154.93. Feeder cattle futures have been under pressure because of fund liquidation and the rally in grain prices.
Cash hogs have been able to find support as packers fill immediate needs. Pork cutout values came under pressure on Monday as retailers have booked enough for the Labor Day holiday. Pork cutout values were down 1.35.
We ask that you take a walk through your field and give us your estimate of this year’s corn and soybean crops. There are only a few days remaining in Allendale’s 24th Annual Yield Survey. Call 800-262-7538 if you have any questions. Thanks for your help. "No one knows your field like you do."
Markets as of 4:45 AM
- Dec Corn -4 1/4
- Nov Beans - 3/4
- Sep Wheat -3 1/4
- Oct Cattle -.20
- Oct Hogs -.02
- Sep Dlr +.05
- Sep S&P -9.25
- Oct Crude +.81
- Oct Gold +19.00
View the Chart of the Day
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