Corn
Corn futures are called 2 to 4 cents higher. Corn export inspections were on the light side at 29.5 million bushels, with the trade having estimated 28 to 35 million. The same week last year was over 44 million bushels. Cumulative shipments for the marketing year are at 1.734 billion bushels vs. 1.811 billion last year. After the close, USDA reported that crop maturity is catching up. The % of the crop in dough stage matches the 5 year average at 73%. Denting is still slightly behind at 33% vs. 37%. Condition ratings declined, with the Brugler500 index dropping to 347 from 354 last week. It was 378 last year at this time. September ethanol futures rose to $2.856/gallon. As a reminder, daily trading limits of 40 cents per bushel went into effect yesterday. The old limit was 30 cents. Chinese futures at Dalian were down 1 cent. Globex futures were up 2 3/4 to 4 3/4 cents.
Soybeans
Soybean futures are expected to start the day session 7 to 10 cents higher after a double digit gain on Monday. Soybean export inspections for last week were 10.9 million bushels, which is fairly typical for mid-August. After the close, USDA reported a drop in crop condition ratings, with the Brugler500 index dropping to 354. It was 378 last year at this time. They say 57% of the crop is in good/ex condition. That is down from 60% last week. Chinese futures were 14 cents per bushel higher on Tuesday. A government auction of 300,000 MT had no bidding interest. Globex prices were up 8 1/4 to 10 1/4 cents.
Wheat
Wheat futures are called 6 to 9 cents higher this morning. After the close on Monday, USDA reported that only 29% of the spring wheat is harvested. The 5 year average for this date is 56%. Spring wheat condition ratings also slumped, with 62% now rated good/excellent vs. 66% last week. Egypt tendered for wheat overnight, for last half October shipment. While Russian offering prices have apparently been rising, the US market is also higher than it was. Globex prices were up 7 1/4 to 8 3/4 cents.
Cattle
Cattle futures are expected to start the day steady to 25 cents lower. Wholesale prices were mixed yesterday. Choice was up $0.63 at $187.42, while select boxes were $.64 lower at $183.05. The Cold Storage report showed total beef in storage up 8% from last year at this time, but down 3% from June 30. The USDA reported that the combined US/Canadian cattle herd is smaller than it was a year ago, despite the growth in US Cattle on Feed numbers. Of course, the US Cattle Inventory report did show a reduction in US numbers back in July. USDA reported pasture conditions at 37% good or excellent. That is UNCH from last week.
Hogs
Lean hog futures are called 20 to 30 cents lower. The cutout value of a carcass gave up the gain from Friday, losing 97 cents as weakness surfaced in fresh loins and seedless bellies ahead of the Cold Storage report. The Cold Storage report on Monday afternoon showed an 8% decline from last month for Total Pork supplies, but inventory is still 16% larger than last year. The USDA reported that the combined US and Canadian hog herd as of June 2011 was 76.9 million head. That was up 1% from last year, but still 3% below June 2009. The combined breeding herd is still smaller than last year at 7.1 million head but did increase from last quarter.
Cotton
Cotton futures are trading 10 lower to 20 higher. Year to date Chinese imports from all sources through July 31 were down 13% from last year at 1.48 MMT. The US, of course, is a major cotton supplier to China. After the Monday close, USDA indicated that 16% of the US crop has bolls open, matching the 5 year average pace. Crop condition ratings were close to UNCH at 31% good or excellent. That is the same combined score as last week. Gold prices set a new high overnight but are currently down $18. The US dollar index is weaker, with the euro 109 points higher.
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.
