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 19, 2018.
Grain market traders are still worried about the amount of rain that has and will fall across Argentina this week. The recent buildup of long positions in corn and soybeans by funds are providing a concern for the bears. There are several economic events this week that could affect outside markets and potentially the grain investors.
World weather Inc. says, “Argentina’s bottom line has not changed much because of the lack of surprising weather during the weekend or in this week’s outlook. Relief from weeks of dryness occurred in northern and eastern parts of Buenos Aires and immediate surrounding areas, including far southeastern Cordoba. Much more rain is needed, but some improvement in pod filling conditions may have resulted in a “part” of the production region.”
CFTC Commitment of Traders report showed managed money funds added 69,529 contracts of corn to make them net long 233.063. They added 24,489 contracts in soybeans to total net long positions of 208,200 contracts. Funds were net sellers of 3,053 wheat contracts totaling a net short position of 35,584 contracts.
Group of senators from U.S. corn states have asked President Donald Trump for a meeting about the nation's biofuels law, amid expectations the administration will soon act to lower the regulation's costs to the oil refining industry. (Reuters)
Funds were buyers of soybean futures on Friday where they were estimated to have been net buyers of 7,000 contracts. They were net sellers of 9,500 corn and 9,000 wheat contracts.
US oil rig count dropped by 4 last week, fro the first decline we have seen in 4 weeks.
Brazilian mills are doing everything they can to keep raw sugar off the global market as Brazil's cane harvest kicks off, to avoid worsening a glut that has driven prices to their lowest in two years. (Reuters)
U.S. Economic markets this week will focus on any market-moving news out of the 2-day G20 meeting of finance ministers and central bankers that begins today in Buenos Aries, the FOMC meeting on Tue/Wed and whether Congress this week approves an omnibus spending bill to avert a government shutdown this Friday.
Brazil has temporarily halted production and certification of poultry exports from scandal-hit food processor BRF to the European Union, reported by country's Agriculture Ministry.
Monsanto Co plans to push ahead with its launch schedule for soy seeds genetically modified to resist dicamba weed killer in Brazil, despite a pending patent dispute related to an older version of the technology, two executives told Reuters.
Managed money funds were net sellers in livestock futures last week. They were sellers of 7,836 contracts in live cattle and 5232 in lean hogs.
Cash cattle trade is expected to be steady this week as packers profit margin improves however larger cattle supplies are expected to hit the market very soon. Packers calling for cattle to be delivered immediately after purchase has many wondering how current the feedlots will be during the next few weeks.
Chart support in April live cattle is 120.72; a close below that level could suggest a move to 118.00 level. Resistance crosses at 124.30.
Cash pork remains weak as cash hog supplies are burdensome. Post-Easter, historically sees improvement in pork demand. Cookout season is just ahead which could provide demand improvement.
April lean hog futures close weak on Friday with technical support crossing at 65.05 (the low made on 8/30/2017). Resistance is at 69.00.
Dressed beef values were higher with choice up .60 and select up .55. The CME Feeder Index is 142.72. Pork cutout value is down .23.
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
