Midday
In The Markets
GRAINS
Corn is up 12c after a slow overnight session with the
market trading on a lack of new fundamental news and traders trying to figure
out what prices will curb demand even more. Reports from early harvests have
been worse than expected so far. Many eyes will be on the Pro Farmer crop tour
that began this morning. You can follow along throughout the week with updates
from our twitter account @hedgeit.
Early reports coming from SE South Dakota have not been good with very low
yields and many fields already chopped. Soybeans are stronger on a drier
weather outlook and continuing strong demand. Export sales are higher
than USDA projections so far this year and there is still strong demand from
domestic crushers. Analysts expect bean conditions to increase 1-3% in this
afternoon’s crop progress report. After trading lower overnight and throughout
much of the early morning wheat has turned higher on the heels of corn. The
USDA’s weekly export inspections report has been delayed until 2pm CST today
due to technical difficulties.
LIVESTOCK
Live cattle futures continue to rise with a strong cash
market due to increasing demand ahead of Labor Day. Feeder cattle have been
trading two sided today and are currently trading higher. Lean hogs are trading
lower at mid-session after early gains. Traders are concerned with
increasing supplies and high feed costs as corn is trading higher today.
Analysts expect this week’s hog slaughter to be the highest since January at
2.2 million head. The August cattle on feed report was neutral with fewer
cattle placed and marketed. Cattle added to feed lots were 10% below last
year’s value, but 8.5% above the five year average. Marketed cattle were at
100%.
ENERGY & FINANCIALS
US stocks are trading lower across the board amid concerns
of the ongoing European debt situation and after the nation’s number two home
improvement store missed earnings expectations. Traders are keeping an eye on
Greece as their Prime Minister meets with Germany and France this week to
discuss extending the deadline to meet their fiscal responsibilities. Crude oil
is also trading lower due to Europe’s economy and is back below $96.
Drivers are buying the most expensive gas on record for August 20th
at a national average of $3.72. The higher prices are due to interruptions in
the supply chain and stronger crude oil prices. Analysts expect prices to rise
until after Labor Day. US$ is trading lower while gold is higher.
Lance Kuhlmann
800-328-6530
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