Good Morning! Paul Georgy with early morning comments for December 27, 2013 at 5:00 am.
Grain futures are higher although wheat is set to post its 4th straight weekly loss.
The confirmation of China rejecting 2,000 tonnes of DDGs is weighing on the corn market. Many traders believe there are more cancellations to come. This could mean backing up of DDGs and less meal usage here at home.
Crush margins are still positive around the world which is keeping support under the January contract. First notice day for the January contract is December 31st.
January option expiration is today at the CBOT.
USDA Weekly Export Sales will be released at 7:30. Trade estimates are: Corn 550 to 750 tmt, soybeans 500 to 750 tmt, Soymeal 50 to 150 tmt, soyoil 0 to 15 tmt and wheat 350 to 550 tmt.
The EIA will be giving us energy stocks at 10:00 and gas storage numbers at 9:30 which have been delayed because of the holiday.
Basis levels at country elevators are steady with a slight pickup in year end farmer movement.
Funds sold an estimated net 6,000 corn contracts, were even in wheat, and sold 4,000 soybean contracts. Index funds are expected to be re-balancing sometime after the first of the year.
Livestock traders are waiting for the Quarterly Hogs and Pigs Report this afternoon at 2:00 pm.
Ranges Average Mln head
All hogs Dec 1 98.6-101.0 99.9 66.307
Kept for breeding 100.2-101.9 101.0 5.875
Kept for market 98.4-101.1 99.8 60.435
The full breakdown of estimates can be found on the Allendale Advisory Report at www.allendale-inc.com.
Traders are hoping for answers to the impact of PEDv on the pig crop and how producers are responding to herd expansion due to the disease.
Live hog weights are well above average which is compounding the problem of a couple short work weeks and cleaning up product. Pork cutout values were up .44.
Cash cattle are expected to trade steady to higher this week. Packers are bidding 129, offers 133 to 134. Beef values were mixed with choice up .07 and select down 1.52. CME Feeder Index is 165.26.
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Markets as of 5:00 AM
Mar Corn +1
Jan Beans +3 1/2
Mar Wheat -1 1/2
Feb Cattle +.25
Feb Hogs +.45
Mar Dlr -.48
Mar S&P -2.25
Feb Crude +.03
Feb Gold -2.20
Chart of the Day
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