Tuesday, August 14, 2012

Midday in the Markets via Country Hedging




Midday In The Markets

GRAINS
Grains are trading mixed after yesterday’s losses as the market continues its attempts to ration demand. Beans are slightly higher after mixed trading and strong demand by processors. Domestic soybean crushers processed 137.4 million bushels in July which is about 6mb higher than analysts expected. Soybeans continue to receive relief from cooler weather and more rainfall forecasted in the coming days. August bean futures expire today. After trading higher overnight wheat is currently lower as it follows in the footsteps of corn. Corn is currently a few cents firmer after trading mixed.


LIVESTOCK
Live cattle are trading mixed on tightening supplies, strengthening demand, and profit taking after reaching three month contract highs. Feeder cattle are stronger on stable corn prices. Cash cattle markets aren’t expected to trade until late this week with no bids or asks currently. Lean hogs are mixed with August futures expiring today and profit taking after yesterday’s rally. October hog futures are higher on the wide discount to cash prices. Cash hogs are expected to weaken on rising supplies. Pasture conditions were mostly stable in yesterday’s report due to the fact that they can’t get much worse than they already are.


ENERGY & FINANCIALS
US stocks are higher after an unexpected strong July retail sales report this morning showed that consumers are still spending in all major categories. Retail sales rose by the most in five months at 0.8% in July. This is after a 0.7% drop in June. Greece held its largest debt sale in two years as it raised $5 billion in short term debt in order to pay off a bond that matures next week.  Crude oil is up again today on the positive news from the retail sales report while the US dollar also turned higher after the report was released.


Lance Kuhlmann
800-328-6530

Country Hedging, Inc.
The Right Decisions for the Right Reasons

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