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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.
 

Markets Adjust Before Weekend

Dec 07, 2012

Good Morning! Paul Georgy with early morning comments for December 7, 2012 at 5:00 am. Grain futures are mixed with corn lower and soybeans higher. Demand has moved to the "head of line" when looking for a driver of corn prices. The USDA weekly sales report yesterday showed only 47,400 tonnes of corn sold last week. That is record low number for this time of year and says price is very important to world buyers. The last time corn sales were near the 5 year average was when Dec futures tested 7.10 level. Soybean demand is strong with talk circulating that China bought as many as 10 more cargoes this week. We are waiting for an announcement from USDA, possibly at 8:00 am today. Soybean basis in Central IL was 10 cents higher yesterday while corn was unchanged. The Coast Guard reduced size of barge traffic tows on the lower Mississippi on Thursday. The focus on South American weather is fading as planting progress is over 50 in Argentina. Brazil crops are considered in pretty good shape for early season growth. Temps will be watched closely as we move into late December and early January. Corn and wheat remain in a trading range while soybeans gained more than 50 cents this week. We could see some profit taking a head of the weekend. Traders will be watching the Labor Department’s unemployment data which will be released at 7:30 this morning. Carryover estimates for USDA Supply and Demand report next week are 666 for corn versus last month 647, soybeans 135 compared to 140 last month and wheat 718 compared to 704 last month. Packers were bidding 123 on Thursday afternoon and feedlots were pricing cattle at 126 to 128. Last week cattle traded at 125. Boxed beef was lower with choice down .76 and select down 1.13. Fund selling in lean hogs has pushed futures through chart support. Pork cutout values were down .67. Stay tuned to Allendale Advisory Report to get the full story. Get all the price outlooks for 2013 at the Allendale Ag Leaders Conference on January 25 and 26, 2013. Reserve your seat TODAY
 
Markets as of 5:00 AM
Mar Corn    -2 3/4
Jan Beans   +4 1/2
Mar Wheat   -3 1/2
Feb Cattle -.30
Feb Hogs    -.50
Mar Dlr     +.18
Mar S+P     -1.50
Jan Crude   -.11
Feb Gold    -4.10
 

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