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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 Claw Back

Apr 16, 2013

Good Morning! Paul Georgy with early morning comments for April 16, 2013 at 5:00 am. Grain futures are mixed with soybeans leading the strength. After giving back last week’s gains in one session traders are again looking at the fundamental news. USDA said Monday afternoon that we have 2% of the corn planted nationally which compares to a 7% average and 17% a year ago. Wheat conditions remain the same as last week at 36% G/E. It appears that the USDA believes the rain was as beneficial as the freeze was damaging. China buying 480,000 tonnes of wheat yesterday leads us to think further weakness could encourage more purchases. Weather forecasts are expecting more rain for the Southern Plains and Midwest this week. Thursday and Friday morning will have a chance for a freeze as far south as northern TX.  On Monday funds sold an estimated net 10,000 CBOT corn contracts; they also sold 7,000 wheat and 8,000 soybean contracts. The NOPA crush numbers yesterday suggest plants will have to shut down in order to meet the USDA target. Soybean crush is running at 7% above last year. In order to meet USDA target of 4% less than last year it suggests we need to crush 14% less for the balance of the marketing year. Cash hog markets have dropped sharply on a pickup in movement after last week’s snow storm. Any disruption in product movement has given traders a reason for selling. A warm weekend in the metropolitan areas would likely help move some higher priced cuts. Boxed beef prices were mixed with choice up .37 and select down .23. Pork cutout values were up .74. Feeder cattle index was down .59 to 137.59. Liquidation of gold positions by funds led the selloff of commodities. Any bounce in gold could provide a bounce in agricultural markets. Call your Allendale broker with questions, 800-2MARKET.

Markets as of 5:00 AM

  • May #Corn    - 1/4
  • May #Beans   +12
  • May #Wheat   - 1/2
  • Apr #Cattle  -.15
  • Jun #Hogs    +.10
  • Jun Dlr     -.09
  • Jun S&P     +8.50
  • May Crude   -.38
  • Jun Gold    +28.00

 

Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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