More Questions Than Answers
Mar 01, 2013
Good Morning! Paul Georgy with early morning comments for March 1, 2013 at 5:05 am. Grains are mixed with corn and wheat higher and soybeans lower on profit taking after Thursday's rally. Reporting this morning from Riverside, IA where we had a great turnout at last night’s meeting. After yesterday’s rally in grains traders have more questions than answers. As we have been saying for a few days the weather market in South America is over. The trade is now focusing on demand and after the rally yesterday on #China buying, how much more strength can we expect? We are nearing levels again where China canceled purchases of #soybeans. Corn demand picked up when prices fell below $7.00 but we are getting near levels where demand dried up. Look to charts for guidance when determining support and resistance. There were no deliveries for #corn and soybeans for March 1 however there were 471 contracts of #wheat delivered. South American shipping problems continue to provide support. The rally in the US Dollar index is providing some headwinds to grain and livestock futures. Watch for further headlines on budget cuts out Washington. Cash cattle traded $3 to $5 higher than last week which put this week’s top at $128 in the north. Boxed beef was higher with choice up .59 and select up .89. Hog packers margins are estimated at positive $10.00. IA-MN cash hogs were steady yesterday while eastern markets were 1.00 lower. Pork cutout values were down .48 on Thursday. The feeder cattle index was down .04 to 138.17. The Allendale-AgriGold meeting starts at 9:00 am. Your help is appreciated by filling out the Planted Acreage survey at www.allendale-inc.com.
Markets as of 5:05 AM
- May Corn + 3/4
- May Beans -10
- May Wheat +5 1/2
- Apr Cattle +.72
- Apr Hogs +.25
- Mar Dlr +.25
- Mar S&P -5.00
- Apr Crude -.93
- Apr Gold -11.20
Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com
