Evening Report (VIP) -- January 24, 2013

January 24, 2013 09:04 AM
 

CATTLE ON FEED TO REFLECT TIGHTENING SUPPLIES... Traders look for tomorrow afternoon's Cattle on Feed Report to reflect a tightening supply situation, as On Feed is seen at 95.6% and Marketings are pegged at 93.2% of year-ago levels. But traders expect the report to break a six-month string of Placements coming in under year-ago levels, with the figure expected to come in at 104.1% of year-ago. Traders believe drought conditions in the Plains triggered a surge in Placements last month compared to year-ago.

Report expectations

Avg. Trade Guess

Range

% of year-ago levels

On Feed

95.6

94.2-96.2

Placements

104.1

96.2-108.8

Marketings

93.2

90.2-95.0

 

ETHANOL PRODUCTION ROSE SLIGHTLY IN LATEST WEEK... According to the Energy Information Administration (EIA), ethanol production the week ended Jan. 18 averaged 792,000 barrels per day (b/d) -- or 33.26 million gallons daily. Production was up 8,000 b/d from the previous week's figure, which was the lowest since EIA began releasing weekly production data in June 2010, but 10,000 bpd below the four-week average. Ethanol stocks tightened by 1.4% from the previous week to 20.1 million barrels.

 

DROUGHT MONITOR REFLECTS SLIGHT EXPANSION IN HRW WHEAT AREAS... The National Drought Monitor shows very little change in the coverage of drought across the contiguous U.S., but reflected slight expansion of drought across the heart of HRW wheat country. With all of Kansas covered by some form of drought, it's concerning to see expansion of "Extreme" and "Exceptional" drought from last week. It also showed expansion of drought in northeast Oklahoma and north-central Texas.

Meanwhile across the Midwest, further slight improvement was noted in Ohio, Indiana and Illinois, while there were no changes to drought conditions in Iowa, Nebraska and Minnesota. Click here for related maps.

 

2012 BIODIESEL PRODUCTION TOPS 1 BILLION GALLONS DESPITE TAX CREDIT UNCERTAINTY... Biodiesel production in the U.S. broke the 1-billion-gallon level for the second year in a row, according to data released by the U.S. Environmental Protection Agency (EPA). Yearly production totaled 1.1 billion gallons, which was up 6 million gallons from 2011. Biodiesel production in December was the lowest of the year at 59 million gallons, as this preceded news Congress would retroactively reinstate the biodiesel tax credit for 2012 and would extend it into 2013 as part of its fiscal cliff deal.

 

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