Harvest Results and Headlines Are Drivers
Aug 21, 2012
Good Morning! Paul Georgy with early morning comments for August 21, 2012 at 5:10 am. Grain futures are higher as more harvest results are known. The USDA improved soybean conditions by 1% to 31% nationally while holding corn at 23% G/E. Soybeans in IL and IN showed a response to recent rains as the G/E improved by 2% in IL and 3% in IN. Grain futures are being driven by headlines as the well promoted crop tour crosses IN, IL, NE and IA; yields of 40 to 50 bushel an acre for corn has rekindled buying interest. A reminder: the week of last year’s crop tour provided a rally of 41 3/4 cents in Dec corn and the corn market topped on August 28, the following Monday. The soybeans topped on August 31. The ensuing sell-off was significant. We are working with producers to protect their crop insurance payments as insured fall price is determined during October. Stats-Canada will be releasing crop data on Wednesday and we have September option expiration on Friday. Macro markets are taking the back seat but the undertow could have an eventual impact on commodities as the EU zone struggles with debt and the fulfillment of austerity plans. Livestock producers are dealing with high feed costs and the availability of feed supplies. Will we see more herd reductions? Boxed beef was higher with choice up .82 and select up .53. Pork cutout values were up .46 on Monday. This week is a very important week for pricing opportunities, stay in touch with your Allendale representative and the Allendale Advisory on the web. Allendale is conducting the 23rd
Annual Yield Survey and your help is needed. You know your fields better than anyone else. Go to www.Allendale-inc.com
and fill out the survey.
Markets as of 5:10 AM
Dec Corn +7 3/4
Nov Beans +13
Sep Wheat - 1/4
Oct Cattle stdy-lwr
Oct Hogs stdy-lwr
Sep S&P +1.00
Sep Dlr -.02
Sep Crude -.05
Dec Gold -2.80
Allendale Advanced Charts
Yesterday’s strength in Nov. Soybeans has set the 8/10 $16.91 ½ contract high in the crosshairs. We feel that it is only a matter of time before we see this high taken out. If we do see a failure at the highs, we would like to see the 8/14 low of $15.87 hold in order to prevent a potential peak and reversal threat…Frank La Placa
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Friday’s weekly Commitment of Traders report showed the following changes in fund positions between August 7 and 14…corn +17,216, soybeans +5,811, wheat -872, live cattle +7,330, lean hogs -302.
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