Is Rotation or Return Per Acre King?
Mar 14, 2018
Good Morning! From Allendale, Inc. with the early morning commentary for March 14, 2018.
Grain market traders take profits and reduce positions after the CME raises margin requirements for corn and soybeans. Outside markets are on edge as turmoil in the president's cabinet and possible fallout from tariffs remain in the spotlight. Growing areas in Argentina are without rain and crops remain under stress.
Allendale Inc. will release the results of the Annual Planted Acreage Survey at 10:00 am CDT today. Click here to attend the release via webinar or on Twitter at https://twitter.com/Allendale_inc.
NOPA Crush data will be released at 11:00 on March 15, Thursday. Trade is expecting 149.443 million bushels, which is 4.7% over last year. USDA just raised their whole-year crush estimate by 10 million bushels to now 1.960 billion which would be 3.1% over last year.
Cash bids were flat to lower at the river terminals yesterday as water levels recede from recent flooding.
CME raises margin requirement for corn futures contracts by 9.1% (from $550 to $600) and soybeans by 7.7% (from $1,300 to $1,400).
Funds were estimated net buyers of 11,000 corn contracts, 9,000 soybeans, 5,000 soymeal and 5,000 soyoil contracts on Tuesday. They were thought to have sold 4,000 wheat.
Soybean harvest in Brazil is moving along at 46% complete versus 50% average. Safrinha corn planting is estimated at 83% versus 85% average.
Syngenta reaches a $1.5 billion settlement for the class-action lawsuit covering tens of thousands of farmers, grain-handling facilities and ethanol plants that sued over their introduction of a genetically engineered corn seed.
Australia's weather bureau said the La Nina weather event that began in December has ended, and there are no clear indications that an El Nino or La Nina event will develop in coming months.
Brazil has improved its food safety standards and is working with trade partners to prevent importers from banning Brazilian meat products in the fallout from an inspection bribery scandal, said Agriculture Minister, Blairo Maggi.
The Fed will be concluding its 2-day meeting today. Trade will be waiting for comment and decisions made by the new Chairman.
Existing home sales data and the EIA energy stock data will be released later this morning.
Packers have raised bids from 126 to 128 late on Tuesday. Packers also raised bids to 204 in the dressed trade for Eastern Nebraska. Nearby supplies appear to be tight while trade continues to wait for the anticipated flood of cattle on the horizon.
Fed Cattle Exchange is offering only 113 head of cattle at today’s auction.
Live cattle futures remain very choppy as the nearby cash trade is telling a different story than recent Cattle on Feed reports would suggest. April Live cattle futures have support at 120.75 and resistance at 123.50 (the 20-day moving average).
April lean hog futures tested the 20-day moving average at 60.87 on Tuesday which is now resistance. Support crosses at 66.42.
Dressed beef values were lower with choice down .17 and select down .74. The CME Feeder Index is 143.17. Pork cutout value is down .25.
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