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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.

Grains Bounce After Sharp Sell-Off

Jul 02, 2013

Good Morning! Paul Georgy with early morning comments for July 2, 2013. Grain futures are higher on short covering. Farmer selling of old crop corn on an early week rally caused ethanol and processors bids to bounce around on Monday. The weakness in basis, in turn, caused profit taking in the bull spreads in corn yesterday. This morning markets are being led higher by nearby contracts. Trading in the July contracts will be very treacherous as the last trading day approaches. Corn conditions improved 2% last week as trade was expecting. The G/E is now 67% versus a year ago of 48%. Soybeans improved by 2 % to 67% G/E versus 45% last year. Soybean planting increased 4% to 96% complete. The double crop bean planting is slow due to harvest delays of wheat which is only 43% complete compared to 52% average. Domestic soybean basis is strong and traders are wondering how the USDA is going to deal with the current pace of crush and exports. Traders will be waiting for Informa’s estimates on Wednesday. Russia says their wheat harvest is moving along due to improving weather which is causing lower values for wheat exports in Black Sea ports. International Grain Council said they expect a 25% rise in maize stocks even with strong demand. Funds were net seller of 14,000 corn contracts on Monday and sold a net 4,000 soybean contracts. Rich Nelson did an excellent presentation yesterday afternoon on USDA acres report. It is viewable here for subscribers and short clips will be made available to everyone later today. Livestock futures are receiving some benefit from strength in outside markets and the lower feed cost. The feeder cattle index was up 1.49 to 139.22. Boxed beef was lower as retailers are done buying for the holiday; choice was down .86 and select was down 1.37. Pork cutout values were down 1.54. Product demand is likely to struggle after July 4th as historically it is a time of increased vacation and less consumption. Markets close at noon on Wednesday and do not reopen until Friday morning.


Yesterday’s poll question was: How many of the 97.379 million corn acres will be lost due to Prevent Plant?

1-2 million acres–26.69%
2-3 million acres–34.8%
3-4 million acres–25.34%
Over 4 million acres–13.18%
Thank you for voicing your opinion!


Markets as of 4:45 AM

  • Dec #Corn    +3 3/4
  • Nov #Beans   +5 1/4
  • Sep #Wheat   +8 1/2
  • Aug #Cattle  +.42
  • Aug #Hogs    -.35
  • Sep Dlr     +.16
  • Sep S&P     +1.75
  • Aug Crude   +.09
  • Aug Gold    +2.60


View Today’s Chart of the Day

If you have any questions on any of our material, give us a call at 800-262-7538 or email us at service@allendale-inc.com

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