Aug 27, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin


July 2012 Archive for Hedging Corn and Soybeans

RSS By: Howard Tyllas, AgWeb.com

Howard Tyllas is currently a member of the Chicago Board of Trade and registered with the Commodity Futures Trading Commission as a floor broker and as a Commodity Trading Advisor.

December Corn Daily Numbers & Trade Ideas for 7/20/12

Jul 23, 2012

Sign up: Free Learn a better way to hedge for farmers

Are you tired of listening to the same BULL ****, and services that do not have a plan if the market goes down instead? Hedge means to take risk off the table, and my service has all producers 100% hedged and they do have most of the upside unhedged (if we can rally for whatever reason). Hedge with a Pro and option expert who has been trading grains for 36 years.

Want to know

Sign up: Free 1 Day Trail of Daily Numbers & Trade Ideas

This report was sent to subscribers on 7/19/12 2:10 p.m. Chicago time to be used for trading on 7/20/12.

December Corn

After the close recap on 7/20/12: My resistance was 7.99, .02 from the actual high, and my pivot acted as support and was 7.77 3/4, .01 1/4 from the actual low.

All charts and numbers for 7/23/12 have already been sent to subscribers at 10:30 pm on 7/20/12.

December Corn

7.99 2012 Contract High
7.93 ¼
-----------7.77 ¾ Pivot
7.62 ¼
7.55 ¾
7.40 ¼ FG
5 day chart.... Up from last week same day
Daily chart ... Up
Weekly chart ... Up
Monthly chart .... Up 5.71 is the 200 DMA
ATR 29 ½ Overbought 81%

For 7/20/12 I continue to say "High of this year is resistance and the gaps below support".

In my daily December corn numbers on Thursday; my resistance was .00 ¾ from the actual high, and my support was .01 ¾ from the actual low.

7/20/12:

Grains: Corn numbers were spot on, 2 soybean numbers were spot on, and 2 were accurate. My take by looking at price action, and knowing the fundamental of corn damage has been priced in at current conditions, and soybean weather premium looks like it was being put in now. The reason being the second half of July and first half of August is critical for soybean yields, and today is July 20th. If price action was just on the weather overall, December corn would not have closed lower while soybeans are making new all time highs.

The bottom line is as it has always been "I do not care what brings the market to a support or resistance level, I want to exploit it by taking advantage of the price". My plan as I have commented on for days and even weeks, is to lock in whatever I can when December corn is near $7.99 ¾. It was a great day trade on Thursday, and selling the pivot in the afternoon worked just as nice, but for my producers it is an opportunity to do something to take advantage what the market is giving them, no matter the reason it got there. What % they can keep and what % they leave on the table is really based on their own thoughts and ideas, and the risk and reward is clearly known as far as buying put spreads. The upside remains unlimited in corn right now, and soybeans for the most part has sold only $1 above the market, or they already got it back with unlimited upside leaving $1 on the table.

Whenever you do buy a put spread to protect what the market gives you, you know exactly what you "bank" no matter if the market continues higher (what we want), but if it goes down we know what we "banked". All are long about $7.10 and the market settled $.68 ½ above there. If this was the last day you would have a bin $.68 above your call strike which is profit. But if we go below $7.10 on expiration you would have watched profits come and go. The December $7.80/$7.10 put spread settled at $.33 ¾. For $.33 ¾ you have "captured $.70. It does not matter if we go higher because you are long unless you sell a call spread, and even then you are still long all upside except for what you sold. The put spread is an insurance policy.

If you are the little old lady at the racetrack (no disrespect) and going to tell me after the race is over whom to bet "knowing" the horse would win, here is what you would say. If it is above $7.80 on expiration you wasted $.33 ¾, and if the market is below $7.10 then it was the right thing to do. My service has taught you to know, "if you do something it is the right thing to do, or why did you do it"? No old ladies should be hedging with that "after the fact" mentality, it's not healthy, and it's not reality. I insist you stay in reality by keeping a journal of your thoughts, ideas, and have a plan even if it is to do nothing. Keeping a journal will speak reality when you look back and see if you are following your plan or not. It will keep you from feeling you missed something, or keep you from having that 8 pound fish you caught become a 20 pounder.

So, do you put the $.70 in your pocket for $.33 ¾ or do you gamble? That is totally up to YOU! You do not need me for that, or anyone else. It is your risk and your reward, and it is your decision. This has nothing to do with a fundamental, and if it cost only $.15 you would then be a foolish gambler trying to save $.15 to insure the $.70. My service is to empower you, and to take whatever I do that will improve what you do. I know some of my producers now know more about options than the brokers they worked with before. Old subscribers now look at risk reward the way I do, I want to be a casino owner getting the odds, not a player looking for luck to win. At some point in time maybe when your pockets are full, you should sell a call spread to pay for the most recent extended put.

What is out there today is all the chatter valid or not, all is unknown, and they tell you what has happened (like market reporters) or their latest guesses. That is because they have little to offer other than words, very little substance on how to trade or hedge, just buy this or sell that. In today's market more than ever before, if you do not have a solid plan and approach, you will get chewed up and spit out and the market will not even blink. Know what you are doing and why, or wait until you do. I had many 1 day trials today; it's been 4 weeks since I posted my grain, which is why I covered this once again.

December 2013 corn closed $6.09 down $.25. The spread I like settled at $.15 7/8. Market gapped sharply higher tonight up $.12, which makes it worth $.14 at $6.21. We started to hedge at $6.41.

The weather continues to be the driver especially for soybeans, so no chart can predict if we will be higher or lower next week. Betting weather is even worse than betting on past price performance in the charts. Yes it could rain and still go higher which would be bullish, or go down and it is still hot and dry which would be bearish. So you could be right the weather forecast but wrong the market, same as it applies to a report. I would rather be right the market for all the wrong reasons rather than being right the report and wrong what I did.

Soybeans: all are long except for $1 on most hedges. I would not sell a call spread just yet because we are making new all time highs, but extending up put spreads to "capture" what the market is giving me at some point is the prudent thing to do. When I have more to lose than what is left to gain, it makes the decision easier the more I have to lose. It is your decision on what you want to do. It costs $.43 ½ to lock in the November $16/$15 put spread. The $16.40/$15.40 settled at $.50 (50%). Do this every $1 higher extending your top put and gaining $1 more protection, would give you half of the entire move from here.

Lastly, you should consider selling 10% of your hedge into the cash market (with no margin required) and getting out of an equal amount of hedges here. The main reason to sell is that if we are still at high prices at harvest then you will need to buy more than $.60 put spreads to cover the downside, and it is harder to rally from a high level rather than a lower level. The reason to keep your hedge is if you lock in enough and the market goes down at expiration like it did last year, then you got a nice profit on the way down, improved your basis, need less of a put spread, and easier to rally $.30 or more and profit like the many times you have in the last 3 years. If you sell cash at $7.80, that is $2.30 more than your original hedge, and your put spread you sell still has value, and the call spread you sold is not at full value, and makes selling cash now highly profitable. If you spent $.80 to $1.30 up to now, that means you made $1 to $1.50 more than you original hedge, and all costs and protection were free. Your basis is probably better than in December 2011/January 2012 where almost all hedges were done. Same goes for soybeans. Up to you to stay long and manage your thoughts and ideas, or take some off the table. Nobody knows your cash basis better than you.

Too early to write off the weather market, and even if demand is destroyed at $8 in corn, it could still go to $9 if soybeans rally from continued hot dry. I want to day trade the numbers without bias and risk $.06 in corn and $.08 in soybeans using a stop to protect any idea.

Want to know what I think for tomorrow and going forward? My service has started to lock in $6.41 December 2013 corn, want to know what is next, subscribe now!

The markets now covered daily are Soybeans, Corn, and S&P's.

HowardTyllas Daily Numbers & Trade Ideas is designed to help you plan your trading strategies for the coming day.

$199.00 USD for each month, renewable monthly

HowardTyllasDaily Numbers & Trade Ideas $ 199.00

If clicking on the above link does not work please copy and paste the following in your browser:

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=D5MG7VPCUWW2N

 

Howard Tyllas

Put yourself in a position to make money, use the daily numbers service!

Email: dailynumbers@futuresflight.com
http://www.futuresflight.com/

Tel.1-312-573-2699, 1-312-823-9189

Disclaimer: No guarantee of any kind is implied or possible where projections of future conditions are tempted. Futures trading involve risk.In no event should the content of this be construed as an express or implied romise, guarantee or implication by or from Howard Tyllas, that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are no indication of future performance.

September Corn Daily Numbers & Trade Ideas for 7/18//12

Jul 19, 2012

Sign up: Free Learn a better way to hedge for farmers

Are you tired of listening to the same BULL ****, and services that do not have a plan if the market goes down instead? Hedge means to take risk off the table, and my service has all producers 100% hedged and they do have most of the upside unhedged (if we can rally for whatever reason). Hedge with a Pro and option expert who has been trading grains for 36 years.

Want to know

Sign up: Free 1 Day Trail of Daily Numbers & Trade Ideas

This report was sent to subscribers on 7/17/12 2:35 p.m. Chicago time to be used for trading on 7/18/12.

September Corn

After the close recap on 7/18/12: My resistance was 7.99 3/4, .02 3/4 from the actual high, and my support was 7.60 3/4, .02 3/4 from the actual low.

All charts and numbers for 7/19/12 have already been sent to subscribers at 4.30 pm .

September Corn

Use the same numbers as used on 7/17/12
7.99 ¾ All Time High
-----------7.80 ¼ Pivot & 2012 Contract High
7.60 ¾
7.40 ½ FG
7.26 ½
5 day chart.... Up from last week same day
Daily chart ... Up
Weekly chart ... Up
Monthly chart .... Up 5.87 is the 200 DMA
ATR 31 Overbought 86%

For 7/18/12: All time high is resistance ($7.99 ¾) and the gaps below support.

In my daily corn numbers on Tuesday; my resistance was .03 ¼ from the actual high; my support was .06 ¼ from the actual low.

7/18/12:

Grains: 5 numbers were spot on, 3 were accurate. Market came very close to a reversal making new highs for the run and closing lower, but they managed to close slightly higher. That tells me the market might not be done just yet, and the gaps below are strong support too. Market came back to "trade by the numbers" waiting more coloring between the lines until more of the picture of further declines is seen. Hardest fundamental picture and unknown outcome I have ever seen.

Further crop condition declines are on tap for Monday, and weather patterns seems to remain the same for now. We might spend a few days trading at these nosebleed levels before going higher until panic sets in, or back down to a level where the buyers show up to stop the declines. Flip a coin.

What has the market priced in for yields? Has the market priced in more shortfall than what is thought the yields are now? Have we priced it in? Add this to all the other guesses, and for me it is all useless because it is all based on perception, momentum, and ultimately just more guesses. Brings me right back to the charts, which is the final decision for all my trade ideas even when I think I know the fundamental picture clearly. DO NOT get emotional when participating in these record high price markets.

I had my first producer hedge 10 contracts of the December 2013 corn. He bought the SUBSCRIBE NOW!

Soybean put spreads are still expensive, but it is never wrong to lock in profits whenever you want to. Retest on Tuesday's high should be considered a place to do a little something. Corn spreads are cheap such as the December $6.40/$5.50 put spread that settled at $.12, and it does seem far away but there is just over 4 months until expiration on 11/23/12, and much can happen.

Even though we have had an extreme rally, there have been little signs of profit taking. I continue to want to trade the numbers without bias and risk $.06 in corn and $.08 in soybeans.

7/17/12:

Grains: Resistance numbers were accurate, and the support numbers were not in play due to the sharply higher open. Crop ratings fell below expectations, and still well above 1988, but I remember 1988 well and the drought without a doubt in my mind happened on the July 4th 3 day weekend, when the country was awakened by thunderstorms on Friday, and continued to rain over the entire weekend and was still drizzling on Tuesday morning on the opening bell. We opened soybeans about $1.50 lower because there are no limits in the spot month. This is not July 4th, and it is not raining either. Anything is possible, and the market backs what I have seen the last 40 years in just the last 5 years, and now you can say "the market can and will do anything".

Market looks poised to test $8 December corn, and locking in a little is the prudent thing to do, but we want it to get above there, and wait for a sign of capitulation or just when it hits a price that you want to lock in more. I do not want to sell a call spread just yet, maybe this market will get crazy in a week if this drought continues, so just extending up put spreads is continuing to let the upside run, and just spending something after the fact by buying put spreads.

Everyone is long corn and soybeans now, and it is YOUR decision on what you do and how you do it to reflect YOUR mindset. If you want to be long unscathed and have unlimited upside, guess what, YOU ARE. If $10 corn or more is in your dreams, your hedge is not holding you back.

Now it is like being at the casino and winning a lot and it is on the table. Yes you are winning $100,000 now, but unless you walk away you have not won it. You're winning it, but you have not "banked" it yet. When you finally leave the table you could have $200,000, or you could walk away a loser. If you keep putting $5,000 in chips in your pocket every time you make $10,000, when you finally have no chips left on the table and walk over to the cashier's window and empty your pockets, you might have won $75,000.

Buying put spreads are just like putting chips in your pocket. At some point in earnings you need to have a plan on how to keep it. Selling call spreads is like when you have the last $10,000 on the table, your pockets are full of chips, and you are happy to bet "double or nothing".

Bottom Line: I would buy some extended put spreads when nearing $8, and do nothing more if it gets above $8 unless following a plan and keeping costs below 20% which means 80% profit locked in with no call spreads on above. The $7.10/$6.40 put spread settled at $.22 ¼, the $7.40/$6.90 settled at $.23, and the $6.90/$5.90 settled at $.24 3/8. These spreads will be cheaper by about $.01 ½ if the market is $.10 higher than Monday's settlement. The $6.30/$5.50 settled at $.09 ¾.

Corn has been strong all night but soybeans have tested the first support and resistance numbers and they held. Soybeans were lower on the night although for an hour or two, and that is the only sign of weakness. I continue to want to trade the numbers without bias and risk $.06 in corn and $.08 in soybeans.

Want to know what I think for tomorrow and going forward?

The markets now covered daily are Soybeans, Corn, and S&P.

My numbers usually are sent at least 1 hour (via your email) in advance of the night session. Subscribers use them as best suited to their own needs and sometimes that involves the overnight trade.

HowardTyllas Daily Numbers & Trade Ideas is designed to help you plan your trading strategies for the coming day.

$199.00 USD for each month, renewable monthly

HowardTyllasDaily Numbers & Trade Ideas $ 199.00

 

Howard Tyllas

Put yourself in a position to make money, use the daily numbers service!

Email: dailynumbers@futuresflight.com
http://www.futuresflight.com/

Tel. 1-312-823-9189

Disclaimer: No guarantee of any kind is implied or possible where projections of future conditions are tempted. Futures trading involve risk.In no event should the content of this be construed as an express or implied romise, guarantee or implication by or from Howard Tyllas, that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are no indication of future performance.


 

WASDE Report 7/11/12

Jul 11, 2012

Sign up: Free Learn a better way to hedge for farmers

Are you tired of listening to the same BULL ****, and services that do not have a plan if the market goes down instead? Hedge means to take risk off the table, and my service has all producers 100% hedged and they do have most of the upside unhedged (if we can rally for whatever reason). Hedge with a Pro and option expert who has been trading grains for 36 years.

Want to know

Sign up: Free 1 Day Trail of Daily Numbers & Trade Ideas

 

WASDE Report 7/11/12

OILSEEDS: U.S. oilseed production for 2012/13 is projected at 92.7 million tons, down 4.2 million from last month, with lower soybean production accounting for most of the change. Soybean production is projected at 3.050 billion bushels, down 155 million as increased harvested area is more than offset by reduced yields. Harvested area, estimated at 75.3 million acres in the June 29 Acreage report, is 2.3 million above the June projection. The soybean yield is projected at 40.5 bushels per acre, down 3.4 bushels from last month. The drop reflects sharply declining crop conditions resulting from limited rainfall since early April coupled with excessive heat across much of the producing area in late June and early July. Soybean supplies are 160 million bushels below last month's forecast due to lower beginning stocks and reduced production. Soybean crush is projected at 1.61 billion bushels, down 35 million reflecting the impact of higher soybean meal prices on meal exports and domestic disappearance. Soybean exports for 2012/13 are reduced 115 million bushels to 1.37 billion reflecting lower U.S. supplies. Increased exports from South America and Canada partly offset reduced U.S. exports. Soybean ending stocks are projected at 130 million bushels, down 10 million.

 

U.S. soybean crush for 2011/12 is raised 15 million bushels to 1.675 billion reflecting stronger-than-expected domestic soybean meal use. Soybean exports for 2011/12 are projected at 1.34 billion bushels, up 5 million, reflecting strong late-season sales and increased imports for China. Seed use is raised and residual is reduced based on indications from the June 29 Acreage and Grain Stocks reports, respectively. Soybean ending stocks for 2011/12 are projected at 170 million bushels, down 5 million.

 

Prices for soybeans and soybean meal for 2012/13 are raised this month. The U.S. season average soybean price is projected at $13.00 to $15.00 per bushel, up $1.00 on both ends of the range. Soybean meal prices are projected at $365 to $395 per short ton, up $30 on both ends of the range. The soybean oil price projection is unchanged at 52.5 to 56.5 cents per pound.

 

Global oilseed production for 2012/13 is projected at 465.7 million tons, down 5.1 million from last month. Lower soybean, cottonseed, and sunflowerseed production estimates are only partly offset by increases for peanuts and rapeseed. Global soybean production is projected at 267.2 million tons, down 3.9 million mostly due to lower production in the United States. Higher soybean production for Canada resulting from increased area partly offsets the U.S. reduction. Rapeseed production is raised for Canada due to increased harvested area reflecting record plantings reported by Statistics Canada. Sunflowerseed production is reduced for Russia based on indications from planting progress data reported by Russia's Ministry of Agriculture. Other changes include reduced rapeseed production for Russia and increased peanut, canola, and sunflowerseed production for the United States. Global oilseed ending stocks for 2012/13 are projected at 63.1 million tons, down 2.7 million as reduced supplies are only partly offset by lower crush. Lower soybean stocks in the United States and South America account for most of the change.

 

WHEAT: Projected U.S. wheat supplies for 2012/13 are raised 5 million bushels with higher estimated beginning stocks more than offsetting lower forecast production. Beginning stocks were reported in the June 29 Grain Stocks report 15 million bushels above last month's projection. Feed and residual disappearance, seed use, and exports are all lowered slightly for 2011/12. Production for 2012/13 is reduced 10 million bushels as a 14-million-bushel reduction in winter wheat is only partly offset by higher forecast spring wheat. Among the Hard Red Winter wheat states, lower production for Texas, Colorado, Oklahoma, and Montana is only partly offset by increases for Kansas and Nebraska. For the Soft Red Winter (SRW) wheat states, increases for Ohio, Illinois, and Indiana are mostly offset by reductions in the southern SRW-producing states.

 

Total U.S. wheat use for 2012/13 is projected 35 million bushels higher. Domestic U.S. food use for 2012/13 is raised 5 million bushels on expectations of lower flour extraction rates for this year's crop. Projected feed and residual use is lowered 20 million bushels, with higher prices and stronger export demand. Exports are projected 50 million bushels higher with reduced competition from Black Sea exporters. Ending stocks for 2012/13 are projected 30 million bushels lower. The projected range for the 2012/13 season average farm price is raised 60 cents on both ends to $6.20 to $7.40 per bushel, supported by sharply higher corn and soybean prices. This compares with the record $7.24 per bushel reported for 2011/12.

 

Global wheat supplies for 2012/13 are reduced 5.1 million tons with lower world production more than offsetting a 1.6-million-ton increase in beginning stocks. World production is lowered 6.7 million tons with reductions for Russia, Kazakhstan, and China accounting for most of the reduction. Russia production is lowered 4.0 million tons with lower expected yields for winter wheat and lower area and yield prospects for spring wheat. Kazakhstan production is lowered 2.0 million tons as persistent June heat and dryness have also reduced production prospects. China production is reduced 2.0 million tons reflecting government indications of lower yields. Canada production is also lowered slightly, down 0.4 million tons, based on lower reported plantings in the latest official survey by Statistics Canada. EU-27 production is raised 2.1 million tons with increases for France, Germany, and Hungary more than offsetting a reduction for Poland.

 

Global wheat consumption for 2012/13 is lowered 1.8 million tons mostly reflecting lower expected wheat feeding in Kazakhstan, Australia, and the United States. Partly offsetting are small increases in wheat feed and residual use for EU-27 and South Korea. Global wheat trade is lowered slightly with imports lowered for China, Indonesia, and Uzbekistan. Partly offsetting is an increase in imports for Iran. Exports are reduced 4.0 million tons for Russia and 1.5 million tons for Kazakhstan. Exports, however, are raised 2.0 million tons for India, 1.5 million tons for EU-27, and 1.4 million tons for the United States. World ending stocks for 2012/13 are projected 3.3 million tons lower at 182.4 million.

 

COARSE GRAINS: U.S. feed grain supplies for 2012/13 are projected sharply lower with corn production prospects reduced 1.8 billion bushels from last month. The projected U.S. corn yield is lowered 20 bushels per acre to 146 bushels reflecting the rapid decline in crop conditions since early June and the latest weather data. Persistent and extreme June dryness across the central and eastern Corn Belt and extreme late June and early July heat from the central Plains to the Ohio River Valley have substantially lowered yield prospects across most of the major growing regions. Harvested area is also reduced slightly based on the June 29 Acreage report.

 

Reduced supplies and higher prices are expected to sharply lower 2012/13 corn usage with the biggest reduction for feed and residual disappearance, projected down 650 million bushels. Food, seed, and industrial use is also projected lower, down 105 million bushels, mostly reflecting a 100-million-bushel reduction in corn used to produce ethanol. Exports are projected 300 million bushels lower as tight supplies, higher prices, and strong competition from South American exporters limit U.S. shipments. A 52-million-bushel increase in beginning stocks and a 15-million-bushel increase in imports offset only a small portion of the expected reduction in this year's crop. Ending stocks for 2012/13 are projected at 1.2 billion bushels, down 698 million from last month's projection. The season average 2012/13 farm price for corn is projected at $5.40 to $6.40 per bushel, up sharply from $4.20 to $5.00 per bushel in June.

 

Trade changes to the 2011/12 corn balance sheet boost projected 2011/12 ending stocks. Imports are raised 2 million bushels based on the latest trade data. Exports are projected 50 million bushels lower reflecting the slowing pace of old-crop sales and shipments. The season average 2011/12 farm price for corn is projected at $6.10 to $6.30 per bushel, up from $5.95 to $6.25 per bushel last month, as cash and futures prices have soared since early June on intensifying drought and heat across the Midwest.

 

Global coarse grain supplies for 2012/13 are lowered 47.6 million tons mostly reflecting the 46.2-million-ton projected reduction in the U.S. corn crop. Partly offsetting is a 1.3-million-ton increase in EU-27 corn production, mostly reflecting higher reported area, and a 0.4-million-ton increase in Canada corn, also on higher reported area. Other important 2012/13 coarse grain production changes include a 1.5-million-ton reduction for Ukraine barley, a 1.0-million-ton reduction for Russia barley, a 0.5-million-ton reduction for Canada barley, and a 0.3-million-ton reduction for Canada oats. Brazil 2011/12 corn production is raised again this month, up 1.0 million tons, based on the latest reports from national and state statistical agencies.

 

Global 2012/13 coarse grain trade is projected lower this month mostly reflecting lower corn exports from the United States. Corn imports are lowered 2.0 million tons each for China and EU-27, 0.5 million tons each for Japan and South Korea, and 0.3 million tons for Mexico. Global barley trade is also lowered with Ukraine exports down 0.5 million tons and Russia and Canada exports each down 0.2 million tons. Barley exports for Australia and Argentina are raised 0.3 million tons and 0.2 million tons, respectively. Global corn consumption drops 22.9 million tons with most of the decline in the United States. Corn consumption is also lowered 0.8 million tons for India and 0.5 million tons each for Japan and South Korea. Global corn ending stocks are projected 21.7 million tons lower with the United States accounting for 17.7 million tons of the decline. Stocks are also lowered for China, Brazil, EU-27, and Mexico.

 

SUGAR: Projected U.S. sugar supply for fiscal year 2012/13 is increased 186,000 short tons, raw value, compared with last month. Carry-in stocks are lowered due to reduced CAFTA-DR imports in 2011/12, which lower that year's ending stocks. Higher 2012/13 U.S. beet and cane sugar production reflects higher-than-expected harvest area reported in the June Acreage report. Imports from Mexico are increased due to higher carry-in supplies. Total use is unchanged.

 

LIVESTOCK, POULTRY, AND DAIRY: The forecasts for 2012 and 2013 red meat and poultry production are reduced from last month as higher feed prices are expected to slow the pace of pork and poultry expansion and temper growth in weights. Beef production is forecast higher for 2012 as deteriorating pasture conditions are expected to increase placements in feedlots. USDA's Cattle report, to be released on July 20 will provide an indication of the 2012 calf crop and producers' intentions regarding heifer retention. Beef production is reduced slightly for 2013 as the earlier placement of calves in 2012 results in a small adjustment to early 2013 marketings. Cattle carcass weights are raised for the first part of 2012, but placement of lighter-weight cattle in feedlots and the higher forecast cost of feed are expected to dampen weight growth in 2012 and 2013. Egg production is raised slightly for 2012 as higher prices support slightly faster growth, but the forecast for 2013 is reduced as higher feed prices pressure producer returns.

 

Beef imports are raised for 2012 as demand for processing beef remains strong and a strengthening of the U.S. dollar has helped support imports from Oceania. Beef exports are reduced from last month as exports have slowed. Strong pork exports in April support an increase in the 2012 forecast. Pork imports are unchanged. Broiler and turkey exports for 2012 are raised based on current export demand. Beef, pork, and turkey trade forecasts for 2013 are unchanged from last month but the forecast of broiler exports is raised on expectations of continued strong demand.

 

Cattle, broiler, and turkey price forecasts 2012 are lowered from last month, but hog prices are raised. Egg prices are raised as current prices have been stronger than expected and supplies are expected to be tighter in the later part of the year. For 2013, the cattle price is unchanged, but hog, broiler, and turkey prices are raised from last month on tighter supplies. The egg price forecast is raised as the production forecast is reduced.

 

The milk production forecasts for 2012 and 2013 are reduced from last month as higher forecast feed prices are expected to pressure producer returns and encourage a more rapid decline in the cow herd. Milk per cow is also reduced due to higher forecast feed prices this year and next. In addition, milk yields in the short term may be affected by recent high temperatures. Imports are raised on a fat basis, reflecting stronger imports of cheese. Exports are raised on stronger sales of cheese, whey, and nonfat dry milk (NDM).

 

Cheese prices are forecast higher for 2012 and into early 2013 as stronger exports support prices. Butter prices are forecast higher in 2012 but weaker domestic demand is expected to offset lower production in 2013 and the price forecast is unchanged. Weaker expected domestic demand will also limit price movements for NDM and whey. The NDM price is reduced slightly from last month, but the forecast for 2013 is unchanged. The whey price forecasts for both 2012 and 2013 are unchanged from last month. The Class III price forecasts for 2012 and 2013 are raised from last month due to the higher forecast cheese price and the Class IV price for 2012 is raised on the higher butter price. The 2012 all milk price is forecast at $17.05 to $17.35 per cwt and the all milk price for 2013 is raised to $17.35 to $18.35 per cwt.

 

COTTON: This month's 2012/13 U.S. cotton estimates show slight revisions in supply and offtake, resulting in marginally lower ending stocks. Beginning stocks are raised 100,000 bales to 3.3 million, reflecting a decrease for domestic mill use in 2011/12. Production for 2012/13 is unchanged at 17.0 million bales, despite a 4-percent reduction in planted area in the June Acreage report, as abandonment and yield have been adjusted based on current conditions. Forecast domestic mill use is reduced 100,000 bales based on recent activity levels. Exports are raised due to higher projected global imports and slightly reduced foreign competition. Ending stocks are now projected at 4.8 million bales. The projected range for the season average farm price is unchanged at 60 to 80 cents per pound.

 

Lower beginning stocks and production trim this month's 2012/13 world stocks projection by 3 percent. World production is reduced 1.5 million bales due to decreases for India, Pakistan, and others. A reduction in India's crop of 1.0 million bales reflects lower-than-expected planted area and slightly lower yield prospects due to the monsoon delay. Total world consumption is virtually unchanged as reductions for China and the United States are offset by increases for India, Pakistan, and Vietnam.

 

RICE: U.S. rice supplies in 2012/13 are raised 12.5 million cwt or 5 percent to 247.0 million cwt as beginning stocks and production are increased 5.0 million and 8.0 million, respectively. Conversely, the import forecast is reduced 0.5 million cwt to 21.5 million because of the availability of larger domestic supplies. Beginning stocks for 2012/13 (ending stocks for 2011/12) are raised 5.0 million cwt as 2011/12 domestic and residual use is lowered based on the Rice Stocks report released on June 29. The higher-than-expected stocks reported by USDA as of June 1 implied lower 2011/12 usage than previously estimated during the March through May period and a reduction in the annual estimate as well. Rice production in 2012/13 is raised 4 percent to 191.0 million cwt this month due mostly to an increase in harvested area as indicated by the Acreage report released on June 29. Harvested area for 2012/13 is raised 107,000 acres to 2.64 million, but is still the lowest since 1987/88. Total use for 2012/13 is raised 9.0 million cwt to 218.0 million as domestic and residual use and exports are increased 5.0 million and 4 million, respectively. Ending stocks for 2011/12 are projected at 29.0 million cwt, up 3.5 million, or 14 percent from a month ago.

 

The 2012/13 long-grain rice U.S. season average farm price (SAFP) is projected at $13.00 to $14.00 per cwt, down $1.50 cents per cwt on each end of the range from last month compared to $13.40 per cwt for 2011/12. The combined medium- and short-grain SAFP is projected at $15.50 to $16.50 per cwt, down $1.75 per cwt on both ends from a month ago, compared to $15.70 per cwt for 2011/12. The 2012/13 all rice SAFP is projected at $13.80 to $14.80 per cwt, down $1.50 per cwt on each end of the range compared to $14.10 per cwt for 2011/12. Rice price projections for 2012/13 are lowered due mostly to an increase in supplies for both long-grain and combined medium- and short-grain rice.

 

Global 2012/13 rice production and ending stocks are reduced from last month, and consumption and trade are raised slightly. Global production is projected at 465.1 million tons, still a record despite decreases totaling 1.4 million mostly due to reductions for India and Ecuador. These reductions are partially offset by increases for Egypt, Vietnam, and the United States. India's crop is projected at 100.0 million tons, down 2.5 million from last month, but still the second largest harvest on record. The delayed and slow progress of 2012 monsoon rains has reduced production prospects in India. Egypt's rice crop is raised 0.7 million tons to 4.5 million due to an increase in area as reported by the Agricultural Counselor in Cairo. Ecuador's crop is reduced 250 thousand tons because of pest and disease problems. Global exports in 2011/12 are raised slightly due mostly to an expected increase in U.S. exports, which is partially offset by a decrease for Ecuador. Global imports are raised for China and several African countries. Global consumption for 2012/13 is raised slightly to a record 466.8 million tons. World ending stocks for 2012/13 are projected at 102.5 million tons, down 1.7 million from last month, and 1.7 million below the previous year. The decrease in ending stocks is due mostly to a decline for India.

 

Want to know what I think for tomorrow and going forward?
 

The markets now covered daily are Soybeans,Corn, and S&P

My numbers usually are sent at least 12 hours (via your email) in advance of the next day open outcry session. Subscribers use them as best suited to their own needs and sometimes that involves the overnight trade.

Find out why my subscribers from Canada, China, Czech Republic, Germany, India, Switzerland, South Korea ,Turkey and the UK keep renewing this service.

HowardTyllas Daily Numbers & Trade Ideas cover markets for less than $10 a day.

 

HowardTyllas Daily Numbers & Trade Ideas is designed to help you plan your trading strategies for the coming day.

 

$199.00 USD for each month, renewable monthly

 

HowardTyllasDaily Numbers & Trade Ideas $ 199.00

 

If clicking on the above link does not work please copy and paste the following in your browser:

 

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=D5MG7VPCUWW2N

 

 

 

Howard Tyllas

 

Put yourself in a position to make money, use the daily numbers service!

 

Email: dailynumbers@futuresflight.com
http://www.futuresflight.com/

 

Tel.1-312-573-2699, 1-312-823-9189

 

Disclaimer: No guarantee of any kind is implied or possible where projections of future conditions are tempted. Futures trading involve risk.In no event should the content of this be construed as an express or implied romise, guarantee or implication by or from Howard Tyllas, that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are no indication of future performance.

Log In or Sign Up to comment

COMMENTS

Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions