Corn
Corn futures are called 7 to 9 cents higher. Sep 11 Corn closed down 24 1/2 cents or -3.55 % last week. Much of the weakness was pre-weekend and month end risk off selling by funds and short term traders. New crop losses were smaller due to declining condition ratings and concerns about final yield or even the number USDA will use in the August 11 report. Preliminary open interest data for Friday does show net new selling in the December and March contracts. The CFTC Disaggregated Futures and Options Report showed Managed money adding net longs in corn in the reporting week ending Tuesday. The possible resolution of the US debt ceiling crisis buoyed the grains on Sunday evening Globex trade. Globex prices were 7 1/2 to 9 cents higher.
Soybeans
Soybean futures are expected to start the day session 12 to 15 cents higher. Aug 11 Soybeans were -1.88 % for the week last week. The rains right now are very timely and somewhat tempering the effects of the above normal temperatures in much of the central US. Two Iowa soybean processors have planned to shut down during the first two weeks of August. The CFTC Disaggregated Futures and Options Report showed Managed money adding net longs in soybeans as of Tuesday. Preliminary open interest data for Friday shows a drop of 8,814 contracts, defined as long liquidation on a day with lower futures prices. Globex futures were up 13 3/4 to 15 cents overnight. Chinese futures at Dalian set a 3 month high.
Wheat
Wheat futures are called 12 to 14 cents higher. Sep 11 MGEX Wheat closed down 7 3/4 cents or -.92 % last week The Wheat Quality Council crop tour found reduced spring wheat yields, estimating the 2011 average yield at 41.5 bushels vs. 46.1 bushels last year. This could be the smallest spring wheat crop since 2008. World wheat stocks appear to be increasing but some countries are concerned about quality problems. IGC hiked projected Russian wheat production to 56 MMT, with 13 MMT destined for export. However, another firm cast doubts that the crop will be that large, due to recent weather problems. France is still working to get the crop out of the field in the northern part of the country with rainfall keeping farmers out of the field. The CFTC Disaggregated Futures and Options Report showed Managed money adding net longs as of Tuesday in KC wheat but reducing net short positions in Chicago. Globex futures were up 12 to 13 3/4 cents.
Cattle
Cattle futures are called 10 to 25 cents lower this morning. Aug 11 Cattle closed up 1.88 % last week. Cash cattle trade on Friday was mostly steady with the previous week. Texas and KS transactions were mostly $108 to $108.50, with Nebraska quoted at $174-177 for steers. Boxed beef prices were mixed. Choice boxed beef was down $1.12 at $174.13 on Friday and Select beef was higher $170.40, up $0.36. The CFTC Disaggregated Futures and Options Report showed Managed money reducing net longs in live cattle and feeder cattle as of Tuesday, July 26.
Hogs
Lean hog futures are expected to open steady to 20 cents lower. Aug Hogs were up 1.93 % for the week. Cash pork trade was slow with moderate demand and very light packer offerings. The Carcass cutout continues to climb setting a new record high of $104.64 on Friday. Cash hogs were higher with IA/MN up $0.03, WCB up $.75 and ECB up $.44. The CFTC Disaggregated Futures and Options Report showed Managed money adding net longs in hogs over the previous reporting week.
Cotton
Cotton futures are trading 20 to 40 points higher this morning. Oct 11 Cotton closed 294 points higher last week, +2.97 %. Texas is finally going to get a little rain. The down pour from T.S. Don was a bust, which was perversely good for the mature cotton in the Rio Grande Valley. However it didn't provide much of a moisture bloom for the rest of the state. The Texas Panhandle is expected to see trace to ¼ inch accumulations by Wednesday. Texas is the largest cotton producing state in the US. Certificated stocks were at 13,566 compared to the previous day of 17,272 bales heading into the seasonal low time frame. There were 607 deliveries and stoppers posted for July 29th. The Cotlook Forward A Index was down 0.40 at 114.90 cents/pound. The CFTC Disaggregated Futures and Options Report showed Managed money adding net longs in cotton as of Tuesday.
By Donna Hughes
Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchange’s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the AllAgNews.com Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.
Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. O’Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.
