Follow Through Buying in Soybeans
Feb 20, 2013
Good Morning! Paul Georgy with early morning comments for February 20, 2013 at 5:05 am. Grains are mixed with soybeans higher, corn and wheat lower. Nearby #soybean futures are leading the charge higher as traders are concerned about the low supplies of soybeans in Chinese ports, shipping delays out of #Brazil and weather concerns in #Argentina. Prices are getting near the 15.00 area in March soybeans which was the level China canceled purchases last month. Brazilian dock workers boarded a ship and stopped it from unloading modernized cranes. They are concerned that modernization of port facilities will cost them union jobs. Brazil will likely see more dock worker problems in coming weeks. Analysts continue to adjust South American production when Oil World out of Germany lowered Argentina’s bean crop. As reported by Reuters, funds sold an estimated net 6,000 corn contracts, sold 4,000 wheat contracts, and bought 13,000 soybeans contracts on Tuesday. March options expire on Friday. The USDA Ag Forum will give us their estimates of corn yield and acres planted later this week. The anticipation and expectation of trend yield of 163.4 is keeping pressure on the corn and wheat futures. Boxed beef prices were higher on Tuesday with choice up .52 and select up .48. Last week’s cattle slaughter ran a little under the previous year level. This week’s will run close to last year’s level. China has asked US officials to begin verifying that the pork we send them is ractopamine-free. Possibly more trouble for exports for meat. The pork cutout value was up 1.48. Thanks again to our hosts Legends Seeds for the two great meetings in SD and MN.
Markets as of 5:05 AM
- Mar #Corn - 3/4
- Mar #Beans +11
- Mar #Wheat - 1/2
- Apr Cattle -.20
- Apr Hogs -.32
- Mar Dlr +.08
- Mar S&P +.25
- Mar Crude +.29
- Feb Gold -13.60
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