Good Morning! Paul Georgy with the early morning commentary for April 24, 2017.
Grain markets are higher, supported by a weaker US Dollar and last week’s sell-off of 14 cents in corn and 24 cents in wheat. French election results adds confidence to EU economy and pollsters ability to project a winner. World stock markets rally while gold and the US Dollar slide due to election outcome.
Will we see last minute US acreage shifts? We'll speak to AgriGold Agronomy Manager, Mike Kavanaugh about the potential of the 2017 corn crop, and his thoughts on acreage expectations in our next Ag Leader's Monthly Webinar. Click here to sign up for the free event.
US weather forecast remains worrisome as the Midwest will receive rains starting Tuesday and Wednesday running through this weekend. Argentine weather is expected to improve after the rains end on Tuesday while Brazil weather is good for crops.
USDA Planting progress will be released this afternoon with trade expecting 11 to 12% compared to 18% average. Southern half of Midwest made good planting progress last week before the rains.
CFTC Commitments of Traders report showed managed money funds were net sellers in corn soybeans and wheat last week. They increased their net short in corn by 13,392 contracts to 171,809, raised their net shorts in soybeans by 16,095 and in wheat by 7,667 contracts.
Friday funds were estimated to have been net sellers of 8,000 corn contracts and 4,000 wheat. They were net buyers of 7,000 soybeans, 3,000 soymeal and 3,000 soyoil.
US oil rig count increases for the 14th straight week to 683. Crude oil production continues to climb to 9,252,000BPD versus last week of 9,235,000 BPD.
Financial markets face a very busy week with a crammed Washington agenda topped off by a possible U.S. government shut-down on Friday night and a slew of U.S. economic reports headlined by Friday's Q1 GDP report.
Cattle on Feed Report as of April 1: On Feed 100%, Placed 110% and Marketed at 110% of a year ago. The placement number was higher than trade was expecting which could cause some pressure on futures on the opening today.
Managed money funds increased their net long positions in live cattle by 8,161 contracts last week to push them a total long position of 131,533 contracts. They were net sellers of 6,440 contracts in lean hogs carrying a net long position of only 18,180 contracts.
June live cattle futures closed up $2.00 for the week while June lean hog futures closed down $4.17 for the week.
Technical indicators are posting an overbought condition in cattle and an oversold condition in lean hogs. Look for some adjustment is the cattle hog spreads this week.
Dressed beef values were higher with choice up 1.44 and select up .32. The CME Feeder Index is 138.05. Pork cutout value is up .88.
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