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The Allendale Wake-Up Call

RSS By: Paul Georgy, AgWeb.com

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.
 

Grain Futures Are Higher on SA Delays

Mar 05, 2013

Good Morning! Paul Georgy with early morning comments for March 5, 2013 at 5:05 am. Grains are higher as soybeans lead the charge on slow shipments out of South America. A Brazilian official said that soybean shipments for February were only 960,000 tonnes compared to 1,600,000 last year. This has fueled the fire that China will be buying more soybeans from the US. Bull spreads continue to work in both corn and soybeans. The tight farmer holdings and firmer basis in the Midwest has helped build momentum in the spreads. The price of wheat is giving feedlots and end-users a reason to think about replacing corn with wheat. The double barreled moisture systems providing rain and snow to the northern plains yesterday and today combined with the forecast for another system to provide moisture to the southern plains is weighing on wheat futures. We were asked many times yesterday about wheat conditions when the USDA starts releasing them again. It will likely not be until early April when we get a nationwide conditions report. One would have to expect a considerable improvement due to the last report of 2012 being record poor. The USDA Monthly S+D Report will be out Friday at 11:00. Expectations are for corn stocks to rise and soybeans stocks to be tightened. ABARES says the Australian wheat crop will be 13% larger than last year. Secretary Vilsack will testify before the House Ag Committee today which may shed some light on meat inspector furloughs. An issue on our mind right now concerning pork is China. They had a March 1 deadline for the US to give them a ractopamine-free verification program. The US Meat Export Federation (not the USDA) has offered them a proposal but there is no response back at this point. Pork cutout values were up .62 supported by the winter storm. Boxed beef prices were up sharply on Monday with choice up 2.86 and select up 2.27. In the past six trading sessions this brings the total rally to $8.61 and $7.88 for choice and select respectively. Big gains have been made here as the market has lowered its supply estimates. The feeder index was up .85 at 139.72. There are only a few more days for you to participate in the Allendale Project Planting Survey.

Markets as of 5:05 AM

  • May Corn    +4 1/4
  • May Beans   +7 3/4
  • May Wheat   +1 3/4
  • Apr Cattle  +.22
  • Apr Hogs    -.17
  • Mar Dlr     -.11
  • Mar S&P     +3.50
  • Apr Crude   +.22
  • Apr Gold    +9.30

 

Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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