Good Morning! Paul Georgy with early morning comments for March 4, 2014 at 4:30 am.
Grain futures are mixed with profit taking in corn and wheat while soybeans are being supported by tight supply concerns.
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The unrest between Ukraine and Russia is overshadowing any US news at this time. Reports out of the region suggest ships are still being loaded in Ukrainian ports. With Russia troops moving into Crimea, one has to assume there will be some disruption of loading or movement of grain at the ports. Get more insight on this matter by subscribing to the Allendale Advisory Report.
As of a week ago, Ukraine has approximately 4 mmt of corn and 2.7 mmt of wheat that is sold and not yet shipped.
The US Senate Foreign Relations Committee Chairman is suggesting the committee is working on ways to provide $1 billion in loans to the Ukraine economy.
More analysts in Brazil are lowering their estimates for the soybean crop. Safras lowered Brazil soybeans to 86.5 mmt while USDA is at 89 mmt.
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Crop ratings for wheat out of the key hard red winter wheat states showed a decline in good/excellent category. OK was down 5% to 31%, NE down 3% and KS was down 1%.
Informa is expected to releases their estimates for next Monday’s USDA report today at 10:30.
Funds bought an estimated 20,000 contracts of corn, 18,000 contracts of wheat and 5,000 contracts of soybeans on Monday.
Soybean export shipments were disappointing. Traders are still waiting for cancellation or switching to South America. Export interest for corn at the gulf picked up due to concerns over Ukraine.
The April lean hog futures now have climbed to $12.50 premium to the cash hog index. Packers are more aggressive about buying hogs as a jump in bids by $2.00 yesterday found packers still wanting more inventories at the end of the day. Pork cutout values were up 1.16 on Monday.
Beef values were higher again with choice up 3.79 and select up 4.69. The improvement in cutout will help packer margins and could keep fed cattle steady this week. Spreading has been a feature in the livestock complex in recent days. Call your Allendale broker about the cattle spread; seasonal studies suggest they should be entered today.
Markets as of 4:30 AM
- May Corn -2
- May Beans +3 3/4
- May Wheat -3 1/2
- Apr Cattle -.02
- Apr Hogs -.55
- Mar Dlr -.06
- Mar S&P +13.00
- Apr Crude -1.14
- Apr Gold -10.60
Chart of the Day
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