Good Morning! Paul Georgy with the early morning commentary for September 24, 2014 at 5:30 am.
Grain futures are slightly higher on short covering.
Traders Focus Today: Exceptional yields, mild weather forecast for a week and technical oversold condition. Traders are looking for reasons that will change the trend.
Technical traders are suggesting the gap made on Monday in the soybean complex could be an exhaustion gap. Which means the market could be in its final stages of decline. However, there is no confirmation of a trend change, the trend is still down.
If you missed our webinar last night, the recording is now available. Listen in to hear what you can expect on next week’s USDA Grain Stocks and Small Grains Summary reports. Plus get the planting and growing season forecast for South America and Australia.
Feltes Ag Report says 126 corn yield reports submitted through Monday averaged 225 bu/ac with 83% over 190 bu/ac. There were 51 soy yields reported averaging 71 bu/ac with 96% over 50 bu/ac.
Gulf basis is remaining steady but export demand is slow as freight costs are keeping US grains pricey.
Argentine farmers are expected to plant soybeans on about 20 million hectares in the 2014/15 crop year, unchanged from the record high set in the 2013/14 season, Agriculture Secretary Gabriel Delgado told Reuters.
New technology in the field of agriculture has allowed farmers in China's largest soybean producing region to boost yields and cut dependence on foreign growers. Adapting a fertilization method used in the U.S., Brazil and Argentina, farmers in northeast Heilongjiang Province have increased annual yields by 8 percent on average this year, Wang Guoliang, head of the provincial fertilizer management station said during a training conference.
Construction of Brazil’s 1st corn based ethanol plant is underway.
Brazilian farmland prices soared 17% in a little over a year – but with wide variations between regions, according to data from SLC Agricola, which signal the most reliable performance in traditional corn and soybean-growing states.
October grain options expire on Friday.
Update - Morning Coffee Commentary:
Pork producers and traders are concerned about the PEDv cases rising again as colder weather nears. Canada has not had any cases of PEDv in 2 months and several countries are opening their boarders to North American breeding stock imports again.
Two firms belonging to Shuanghui Group, one of China's leading meat producers, have received permission from Russia's agricultural supervisor to export frozen pork to the country, which had previously suspended pork imports from China since 2004, the Chinese meat group confirmed with the Global Times.
USDA Quarterly Hog and Pigs Report will be released on Friday. Pork cutout value is up 1.23.
Cash cattle this week is expected to be steady to lower. Current asking prices are $161 to $162. Packer margins are over $60.00 per head in the red. Beef values remain under pressure as carcass weights rise. Choice is down 3.85 and select is down 1.18. The CME Feeder Index is 230.39.
Markets as of 5:30 AM CDT
- Dec Corn +1
- Nov Beans +1
- Dec Wheat +3 1/4
- Oct Cattle -.37
- Oct Hogs +.42
- Dec Dlr +.01
- Dec S&P +5.25
- Nov Crude -.06
- Oct Gold +1.30
Technical Chart of the Day
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