were mixed to start the day with spreading a dominating market mover. Buying old crop, selling new crop corn is again being supported by tight supplies, writes Paul Georgy, Allendale, Inc. President & CEO.Cash market basis for corn and soybeans improved at processors across the Midwest late yesterday. The lack of farmer selling and processors accessing needs and realizing that harvest is still 6 to 8 weeks away.
It is expected that farmers will be anxious to harvest early and take advantage of basis premiums. Elevators will likely offer incentives such as free drying to get corn early. Some of our Texas customers are already harvesting corn.
Weather conditions continue to improve as temperatures are expected to remain below normal for a few more days. The moisture moving across the Corn Belt this week should reduce crop stress areas. Traders are already trying to analyze the effect of an early frost, however, the next big event is the August 12 Crop Production Report.
Where will USDA put their yield estimate? Their trend yield is 163.6, and last month they used 156.6. More discussion on this subject as we get closer to report release date.
Cattle market is looking for any positive news to push prices above the 127 resistance area in the October contract. This market has been stuck in a sideways range for some time. Product values for the last 3 years have had sharp rallies into the third week of August. Can it happen again in 2013?
Boxed beef was mixed with choice up .37 and select down .56. The CME Feeder Cattle index is 148.31 up .66.
The cash hog markets came under pressure this week as the IA/MN market is down several dollars. Seasonally hog supplies are expected to grow.
Pork cutout values were up 1.24 on Tuesday due to reduced slaughter.
TheCropSite note: Sources report corn harvest has also begun in Florida and south Georgia.
