The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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.
Good Morning! From Allendale, Inc. with the early morning commentary for March 6, 2018.
Grain market traders will be focusing on Thursday’s USDA report, weather forecasts for Argentina and southern Plains, and large long positions by funds in the soybean complex. Outside influences will come from the imposing of potential tariffs on steel and aluminum later this week.
Allendale's Annual Planted Acreage Survey is going on now through March 9th. The results will be released on March 14 during a live Ag Leaders Webinar (Register Here). You can help - report your data online Click Here or call 800-262-7538.
USDA March Supply and Demand Report and the World production estimates will be released on Thursday at 11:00 am.
Reuters survey of analysts has average estimates for US ending stocks for corn to decline from 2.352 in February to 2.312 billion bushels in March. Soybean estimate is 530 million bushel which is unchanged from February. Wheat ending stocks are expected to rise slightly.
Trade estimates for Argentina corn production is 36.58 mmt compared to USDA’s February estimate of 39.0 mmt. Brazilian corn production is estimated at 92.22 mmt compared to 95.00 mmt last month.
Trade soybean production estimate for Argentina is 48.36 mmt vs. 54.0 last month. Brazil soybean production this month is put at 113.82 mmt vs. 112.0 in February.
Funds net long positions in soybeans and soymeal on Friday’s CFTC Commitment of Traders report are beginning to concern traders. Funds are estimated to have added to net long positions by 6,500 corn contracts, 6,000 soybeans, 5,000 wheat and 2,000 soymeal.
Brazil's ethanol demand reached 1.37 billion liters in January, 55 percent more than in the same month a year earlier, cane industry group Unica said, as car owners switched from gasoline to the biofuel due to a large price difference at the pump. (Reuters)
Australia's 2018/19 wheat crop is expected to rise 11.8 percent from the previous season, the country's chief commodity forecaster said, as La Nina weather conditions boost yields across the nation.
Crop conditions in Argentina’s drought-battered corn and soybeans fell further this week, and ratings among the top three provinces are now on average about 23 percentage points lower than a month ago. The poor conditions prompted the Buenos Aires Grain Exchange to slash the country’s soy crop to 44 million tonnes from its previous estimate of 47 million but maintained corn at 37 million tonnes. (Reuters)
Showlists this week increased by 9,800 head in the four major cattle feeding states.
March historically is the weakest demand month of the year for beef. However, due to positive profit margins of retailer, we are seeing beef featuring. Positive packer margins could boost cash fed cattle prices this week.
Fed Cattle Exchange this week has 474 head being offered at Wednesday’s auction.
April cattle futures put in a positive performance on Monday, however, it was an inside day on the charts. A close above 124.00 is needed to turn the trend. Major support now crosses at 121.90 with resistance at 125.67.
Cash hogs gained most of last weeks losses and comes at a time when the seasonal window for a low develops. It will take a few more trading sessions to confirm a seasonal low has been made.
April lean hog futures have support at last weeks low of 66.90 with a close above the 72.00 level is needed to break the downtrend.
Dressed beef values were higher with choice up .71 and select up .20. The CME Feeder Index is 145.44. Pork cutout value is up 1.51.
If you have any questions on any of our content, give us a call at 800-262-7538 or service@allendale-inc.com
Loading News
