Country Hedging's Mid Day in the Markets 7-30-12
Midday
In The Markets
GRAINS
Grains are trading higher on a hot and dry weekend and
forecasts are showing that trend will continue this week. Moisture for
soybeans will become ever more important these next few weeks while corn is
beyond benefiting from rainfall. The trade is expecting another drop in
crop conditions in this afternoon’s USDA report. December corn hit a
contract high this morning of $8.17 ¼ and is currently up 20c to 8.13.
Wheat has been following corn higher while also being supported by news of
global supply issues and Russia looking at suspending grain exports due to low
production. Soybeans are also stronger with the front and deferred months
trading about 30c higher. Corn and wheat export inspections topped
expectations with corn at 21.44 million bushels and wheat inspections at
18.6mb. Soybean inspections were in line with expectations at 15.5mb.
LIVESTOCK
A USDA meteorologist reported that 75% of all cattle herds
in the US are located in areas that are experiencing drought. Live cattle
futures are trading much higher than cash prices as beef demand has slowed down
and signs of tightening supplies. Currently nearby live cattle are
trading up .575 to 120.175. Feeder cattle are trading mixed with
another surge in corn prices. August feeder cattle are .850 higher at
138.600. Lean hogs are trading mixed today with a rally in corn prices
leading deferred months higher and lower pork cutout values that were released
after the close on Friday are initiating selling in the August contract.
ENERGY & FINANCIALS
US stock markets are paying attention to today’s meeting of
the ECB’s President, Germany’s finance minister, and the US Treasury
Secretary. They are expected to release a statement at the conclusion of
the meeting providing insight into how they plan on turning around the
declining global economy. Spain announced today that its economy has
contracted for the third straight quarter. Crude oil has been hovering
around $90 today, but is currently down 44c to 89.69. The Dow is trading
above 13,000 for the first time since May.
Lance Kuhlmann
800-328-6530
The Right Decisions for the Right Reasons