Sep 14, 2014
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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.
 

Political Unrest Sends Markets Higher

Mar 03, 2014

Good Morning! Paul Georgy with early morning comments for March 3, 2014 at 4:45 am.  

Grain futures are sharply higher. The tension between Russia and Ukraine has traders concerned that exports out of the Black Sea Region will be disrupted. Weather conditions in Mato Grosso and lack of cancellation confirmation is providing fuel for the buying.

Allendale Annual Planted Acreage Survey is going on right now. There is only 5 days left to participate. Please call us or go to www.allendale-inc.com and fill out the survey.

The 2014 crop insurance prices are set and the soybean to corn ratio is just below 2.50 to 1 which we have not seen since 2008. Now that we have flipped the calendar to March, planted acreage estimates will become very import. Given acreage coming out of CRP and the prevent plant acres of last year, many are expecting more than the 78.5 million acres of soybeans that USDA had in their Ag Outlook.

Managed Money Funds increased their long positions in corn and soybeans by 42,264 and 7504 contracts respectively. They also decreased short positions in wheat by 14,091 contracts and still hold a net short position of 20,311 contracts.

Soybean sales and shipments are being monitored closely by the trade. Currently the US has 7.4 mmt of unshipped soybeans. There is approximately 3.3 mmt sold to China which is nearly double from last year.

Allendale is excited to introduce Ryan Martin as our in-house Meteorologist! Ryan will post his daily weather headlines every morning. Take a look!

The $12 rally in cash hogs over the past two weeks suggests packers are pretty much chasing after every single hog they can find. They want to get enough numbers lined up before market ready numbers fall off the PED cliff. Pork cutout value is up 2.21.

Cattle slaughter was the tightest during third week of February with 539,000 head. Last week slaughter ran 567,000 head. Rich Nelson, Allendale’s Chief Strategist, believes slaughter could be up to 590,000 by the end of April and around 650,000 for June peak. Beef cutout values end the week on a firm note with choice up 3.92 and select up 4.12. The CME Feeder Index is 171.03. Early calls for the livestock opening would be steady higher.

Markets as of 4:45 AM

May Corn    +17 3/4
May Beans   +20 3/4
May Wheat   +3 1/2
Apr Cattle  Steady-Higher
Apr Hogs    Steady-Higher
Mar Dlr     +.12
Mar S&P     -17.00
Apr Crude   +1.45
Apr Gold    +23.60

Chart of the Day

Daily Chart

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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