Good Morning! Paul Georgy with early morning comments for April 23, 2013 at 5:00 am. Grain futures are lower after what should have been supportive news late yesterday.
Commodity liquidation by funds seems to be the force in the pressure we are seeing this morning. USDA put last week’s total corn planted at 4% which would tie the record low for this date in 1993. We will likely continue to run behind as the 1 to 5 day outlook is for more rain to cover the majority of the Midwest.
Rich Nelson shared a study comparing years where we have corn planting delays of 10 % or more. Three out of four years corn planted acres increased and yield declined from trend yield. It is likely the USDA will make some adjustment for yield on the May 10th report. With the probability of adjustments, we could still see ending stock for 2013/14 increase in corn. Get the full report by going to www.allendale-inc.com and click on Strategy Sessions.
The USDA made very little change in winter wheat conditions when they lowered the G/E to 35% from 36%. There are reports out of Brazil that farmers are moving soybeans as much as 1,000 miles by truck to a southern port to bypass loading delays at the 2 major ports. Funds were net sellers across the board yesterday as it is estimated they sold 7,000 corn contracts, 3,000 wheat and 7,000 soybean contracts.
Mississippi River barge traffic has come to a standstill as flood waters are causing havoc. Bull spreading is still the feature as farmer selling remains light. Livestock markets absorbed the negative news well on Monday.
Traders are hoping for a warm weekend in the metropolitan areas which could help movement of the higher valued cuts of beef and pork. Choice beef was up .68 and select was up .04 on Monday. Pork cutout values were up 1.54. Sign-up is now open for the Monthly Ag Leaders Webinar.
Markets as of 5:00 AM
- May #Corn -3
- May #Beans +4 1/2
- May #Wheat -8 1/2
- Jun #Cattle +.05
- Jun #Hogs +.25
- Jun Dlr +.27
- Jun S&P -2.00
- Jun Crude -.84
- Jun Gold -7.60
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