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The Allendale Wake-Up Call

RSS By: Paul Georgy,

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.

Grains Set For Volatility

Apr 26, 2013

Good Morning! Paul Georgy with early morning comments for April 25, 2013 at 5:05 am. Grain futures are lower on profit taking, changing weather forecast and first notices day adjustments. Exports sales did not provide any positive news yesterday morning. However, the USDA did confirm sales of 300,000 tonnes of new crop corn to China and 240,000 tonnes of new crop corn to unknown buyers. We also saw cancellations of old crop soybeans by China. The tight holding of soybeans and corn by farmers is providing strong support to old crop prices. Basis for meal continues to firm as processor struggle to buy soybeans. The forecast for snow next week from KS to MN by various models has traders on edge. The first notice day for May contracts is Tuesday. Traders are required to reduce position size down to 600 contracts. With the large amount of bull spreading we have seen in recent weeks, we could be in for a volatile next few sessions. The trade is not expecting deliveries as cash prices are at a significant premium to futures. Funds were estimated to have bought a net 7,000 corn contracts, 3,500 wheat and 8,000 soybean contracts on Thursday. CME cattle futures are testing downtrend resistance lines as traders become optimistic on cash prices. There were 12 cattle deliveries on Thursday. Choice beef was steady while select was down .31 yesterday afternoon. The feeder cattle index was up 1.23 to 133.71. Hog markets continue to rally on fund buying and an outlook for cookout demand to help clear the retail counters. Traders buying the nearby contracts and selling the deferred contracts has had a sharp move in recent days. Contact your Allendale Broker for further trade ideas. Remember to sign up for the April Allendale Ag Leaders webinar next Tuesday April 30.

Markets as of 5:05 AM

  • May #Corn    -2 3/4
  • May #Beans   -1
  • May #Wheat   -3 1/2
  • Jun #Cattle  +.20
  • Jun #Hogs    +.12
  • Jun Dlr     -.09
  • Jun S&P     -4.75
  • Jun Crude   -.60
  • Jun Gold    -.20


View the Chart of the Day

Contact Allendale: 800-262-7538

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