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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.
 

Quiet Session Overnight In Grains

Apr 19, 2013

Good Morning! Paul Georgy with early morning comments for April 19, 2013 at 5:00 am. Grain futures are mixed this morning as bull spreads dominate trade. The question most asked yesterday afternoon was, what made the corn go down? It could be a combination of things. Basis weakening along the Mississippi because of possible river closure due to flooding or it could be liquidation of long positions ahead of first notice day. However funds were big sellers in corn futures after prices tested technical resistance. They were estimated to be net sellers of 13,000 contracts. Export sales data was supportive for corn, beans and wheat. Weather forecasts remain on the friendly side as forecasting models suggest a cooler than normal 10 to 15 days out. Bull spreads have recovered overnight with May contracts gaining on the July and Dec. Cash grain markets are the leaders as farmers have locked the bin doors and holding out for higher prices or at least until they get some seeds in the ground. Soybean and meal basis is on fire. There are reports of soybean processors in IA bidding $1.00 over the July futures. However river bids are lower as exporters are concerned about high water. Meal basis continues to strengthen as some processors are closing and others are slowing down productivity due to lack of their ability to buy soybeans. Cold weather has hit the HRW areas again. We have to wait a few days to assess the real damage. We expect more choppy markets with spreaders being the feature as we close out this week. Sign up for a free market update text at 11:30 AM. Cattle futures drifted lower as cash market trade remains at a standstill. Boxed beef values were lower on Thursday with choice down .54 and select down .24. Cattle traders will be adjusting positions ahead of this afternoon’s Cattle-on-Feed report. Hog futures are trying to fight the downtrend as a technical head and shoulders formation develops on the charts. Pork cutout value was up .41 on Thursday. Try a free trial to the Allendale Advisory Report.

Markets as of 5:00 AM

  • May #Corn    - 3/4
  • May #Beans   + 1/2
  • May #Wheat   -2 3/4
  • Jun #Cattle  -.30
  • Jun #Hogs    -.30
  • Jun Dlr     -.13
  • Jun S&P     +10.75
  • May Crude   +.87
  • Jun Gold    +21.00

 

View the Chart of the Day

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

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