September corn closed at $3.39 and 1/2, up 7 and 1/4 cents
August soybeans closed at $11.34, up 5 and 3/4 cents
August soybean meal closed at $361.00, up $5.20
August soybean oil closed at 35.06, up 13 points
September wheat closed at $5.28 and 1/4, up 12 cents
August live cattle closed at $84.70, up $1.25
August lean hogs closed at $56.02, up $1.40
September crude oil closed at $69.45, up $2.51
October cotton closed at 57.93, down 15 points
August Class III milk closed at $11.05, up 27 cents
Dow Jones Industrial Average: 9171.61, up 17.15 points
Closing grain and livestock futures; July 31, 2009
July 31, 2009 By Leave a Comment
How will the support increase affect dairy prices?
July 31, 2009 By Leave a Comment
U.S. Ag Secretary Tom Vilsack announced Friday morning a temporary increase in the support price for dairy products, which will mean an increase in the price paid to farmers for milk.
From August through October of this year, the price paid for nonfat dry milk increase from $0.80 per pound to $0.92 per pound, the price paid for cheddar blocks from $1.13 per pound to $1.31 per pound, and the price of cheddar barrels from $1.10 per pound to $1.28 per pound. USDA says the increase will result in the government purchase of an additional 150 million pounds of non-fat dry milk and an additional 75 million pounds of cheese.
Ken Heiman is a cheesemaker in Wisconsin: he says this is going to take away a lot of the cheese that has been going to the Chicago Mercantile Exchange. Most of that cheese has come from the western United States, Heiman thinks that is what the Commodity Credit Corporation will purchase, “And we will virtually create a shortage and we will take the price up.”
He also believes this will push the farm milk price up $2.00 or-so, “Industry buyers have no problem with $1.50 cheese but everything has been based on the Chicago Mercantile.” Heiman does not see the higher prices affecting retail prices that much, he notes that retail did not follow the market to the bottom, “So we’ll see the stores absorb a lot of this increase.”
AUDIO: Ken Heiman talks about how the market should react 2:00
$2 billion for CARS comes from renewable energy
July 31, 2009 By Leave a Comment
The House moved quickly on Friday to put another $2 billion into the Cash-for-Clunkers program. On a 316-109 vote, members transferred the money from the Department of Energy’s renewable energy loan guarantee program.
Bob Dineen with the Renewable Fuels Association says while they certainly understand the economic situation in the United States and support the CARS program, they hope Congress will replenish the renewable energy loan program. Dineen says while it is important to get more fuel efficient cars on the road, it is also important to have those cars running on renewable fuels to benefit both the economy and the environment. “We need to have both.”
The situation presented itself in that the funds in the renewable energy loan program were not being utilized, “DOE has been a little slow in getting the regulations out to get the program moving,” says Dineen, “but there is no shortage of projects that would like to have access to this loan guarantee money.” While $2 billion is just a portion of the money in the fund, he wants to make sure it is all there when it is needed.
The Senate is expected to take up the issue next week.
AUDIO: Bob Dineen talks about the Cash-for-Clunkers deal 3:00
Not much change in the July base milk price
July 31, 2009 By Leave a Comment
Dairy producers will not see much difference in their milk checks in August. The base milk price for July production is $10.87 per hundredweight for Class II milk, that is 8 cents higher than the June price but $5.94 lower than last July. Class III base for July is $9.97, the same as the June price and $8.23 below July of last year. Class IV base is $10.15, down 7 cents from June and $6.45 below last year.
Component prices for July; Butterfat $1.2438 per pound; Protein $1.697; Nonfat solids $.6677; Other solids $.0949
Soybeans rally at the close: July 31, 2009
July 31, 2009 By Leave a Comment
After wavering from the day’s highs, soybeans rallied in the last 10 minutes of trade, closing higher. China bought big on Thursday, taking 1.9 million metric tons of soybeans, which resulting in significant gains during that session. DTN says the market will have two technical hurdles to overcome next week, near $9.87 and $9.96 respectively. With underlying fundamentals getting more bullish, it might happen.
Corn closed higher Friday on follow-through buying from Thursday’s sharply higher session along with Friday’s stronger Dow and crude oil market. Corn futures were also higher on the week. Lower corn prices lately along with increasing ethanol production may be boosting corn demand. DTN says that greater demand triggered commercial support through the week.
The wheat market remains bearish because of plentiful global supplies, slow exports and other bearish information with each USDA report. However, the futures closed higher Friday, helped by weakness in the dollar. More bearish news came this week from the North Dakota spring wheat crop tour, reporting the projected yield to be increasing almost 9 bushels to the acre over last year’s yields. Some are calling for the best crop they have ever seen. However, DTN says it’s possible the seasonal low has been put in, looking at recent market action.
For the week, September soybeans gained 92 1/2 cents, and November soybeans gained 67 cents. September corn gained 23 1/4 cents, and December corn gained 22 1/4 cents. September Chicago wheat gained 12 cents, September Kansas City wheat gained 10 1/4 cents and September Minneapolis wheat gained 13 1/2 cents.
IFB pleased with hypoxia survey results
July 31, 2009 By Leave a Comment
A new survey shows the “hypoxia,” or so-called “dead zone” in the Gulf of Mexico is much smaller than scientists predicted. The survey, led by the Louisiana Universities Marine Consortium, surprised scientists who predicted that the zone would be the largest ever, at about 7,500 and 8,500 square miles. Instead, it’s about three-thousand. Weather patterns are credited for helping “re-oxygenate” the water. Some believe the dead zones are caused by fertilizer runoff from the mainland US carried primarily by the Mississippi River.Iowa Farm Bureau says this survey shows that farmers are “doing their part to use soil and water conservation measures to reduce nitrates and phosphorus run-off.” The organization says there has been a 21% decline in nitrogen delivery to the Gulf of Mexico. IFB’s environmental policy director Rick Robinson says there’s still more work to do but farmers are “taking action to reduce runoff.”
With Iowa farmers expecting a record corn yield this year he says seed genetics and better conservation measures show that farmers “can feed the world while continuing to protect it.”
A study funded by the National Corn Growers concludes that fertilizer runoff is not the main reason for the dead zone and that it has as much to do with “natural conditions” as anything.
Veteran climatologist says cool August possible
July 31, 2009 By Leave a Comment
If historical patterns hold true, cooler-than-normal weather could continue through August across the Midwest. So says Elwynn Taylor, veteran climatologist at Iowa State University.
“Recently-in 2004-and in 1992 and a couple of other times,” Taylor says, “when it has been considerably warmer than usual west of the Continental Divide, there is a real tendency for the Midwest to stay on the cool side of usual all the way through August.”
But again looking at historical trends, Taylor says a cool summer is not necessarily bad for corn yields.
”In the years that tracked as this one is doing, we have consistently had above trend-line yield,” he says. “That means above the 155 bushels to the acre for the Corn Belt-and right now we’d have to say that’s likely unless there’s a radical change.”
However, it may also result in a wet corn crop-slow to dry down-much like 2008. And Taylor says it could be detrimental to the soybean crop, which will need warmer weather in August to accelerate development.
What about the El Nino, which forecasters expect to develop gradually during the next several months? Taylor looks for El Nino weather to start in October.
“That’s not soon enough to be helpful to the beans, especially-and to corn to get it mature and dried down,” says Taylor, “but that’s enough to be helpful for having, perhaps, a full growing season and a winter that may be on the mild side of usual.”
Which, as Taylor puts it, “would be a delightful turnaround from three of the past four years.”
Lagging soybean crop gaining more market attention
July 31, 2009 By Leave a Comment
Another abnormally cool week of summer weather has market analysts paying more attention to the lagging development of the U.S. soybean crop.
Allendale’s Joe Victor points to 2008, when the crop was also behind going into August. He says the 2008 soybean yield went from an estimated 41-point-six bushels in July to a final yield of 39-point-six bushels in January, a drop of nearly five percent.
“Using that kind of a formula,” Victor says, ” it would not surprise us to see that if these beans continue to lag in maturity, you can’t rule out the fact that we’re going to end up with smaller end stocks than what USDA is projecting presently, at 250 million bushels.”
How much smaller? “I would say we’d be comfortable in a range, based on maturity alone, of 125 to 175 million bushel end stocks,” Victor says.
He says traders are also watching corn development and may be ready to add a weather premium to that market.
Feedlot cattle trade at lower prices this week
July 31, 2009 By Leave a Comment
Live cattle contracts settled unchanged to 47 points higher on the Chicago Mercantile Exchange on Friday. Futures were moderately lower much of the session, pressured by profit taking and cash uncertainty. August finished 12 points higher at 84.70, and October was up 35 at 90.20. Boxed beef cutout values were weak to lower on light demand and moderate offerings. Choice beef was down .62 at 141.64; select was 1.08 lower at 135.24.
Feeder cattle ended the session 5 to 37 points higher. Most traders seemed content to hold current positions until next week when a whole new month is on the books. Overall trade activity remained very light. August was up 22 points at 102.35, and September settled 27 higher at 102.55.
Feeder cattle receipts at Missouri auctions this week totaled 21,966 head. Compared to last, week steers and heifers trended unevenly steady, with the trade ranging from 2.00 higher to 2.00 lower, with no solid direction on any one weight class. Feeder cattle medium and large 1 and 1-2, steers weighing 500 to 600 lbs 97.00 to 120.25, 7 to 8 weights 94.00 to 109.75. Heifers weighing 500 to 600 lbs traded at 90.00 to 109.75 and 7 to 8 weights from 85.00 to 100.50 per hundredweight.
The weekly cattle slaughter was estimated at 639,000 head, 24,000 more than last week, but 23,000 less than last year. A moderate to active cattle trade with moderate demand developed in Kansas on Friday. Compared to last week, live sales were 1.00 lower at 82.00 and dressed sales were 2.00 lower at 130.00. Trading was light in the Texas Panhandle with light to moderate demand. Live sales were 1.00 lower at 82.00. Dressed sales in Nebraska were reported by USDA Mandatory at 131.00, 1.00 to 2.00 lower than last week, and live sales at 82.50. Dressed sales in Iowa/Minnesota were 1.00 lower at 131.00, and live sales 1.00 to 2.00 lower at 82.00.
The weekly hog slaughter was estimated at 2,104,000 head 74,000 more than last week, and 11,000 greater than a year ago. Terminals barrows and gilts were 1.00 to 2.00 lower in a limited test from 32.00 to 38.00. Missouri direct base carcass meat price was steady from 49.00 to 52.00. Iowa/Minnesota hogs closed 1.14 lower at 52.40 on a carcass basis, the West was also down 1.14 at 52.59, and the East closed .53 lower at 52.49. Saturday kill is estimated at 40,000 head by USDA as packers continue their aggressive chain speed. Packers reportedly have adequate inventory to start the week. Monday’s cash bids are expected to be lower.
Lean hogs settled 35 to 140 points higher, but the foundation for the upward rally was lacking, leaving most of the upward shift to be mainly associated with late week and end of the month position squaring, according to DTN’s Rick Kment. August settled 140 points higher at 56.02, and October was up 130 at 53.90. Pork trading was slow to moderate, with light to moderate demand and offerings. The lean carcass cutout value was up .32 at 59.41.
Pork bellies settled 125 points higher to 90 lower on strong buying support with the spot August posting the sharpest gains. Again, most of the activity was likely associated with end of the month position squaring rather than a shift in overall market fundamentals. August was up 125 points at 62.25 and February was 12 lower at 81.25.
Pioneer, Burrus sign distribution agreement
July 31, 2009 By Leave a Comment
Pioneer Hi-Bred and Burrus Hybrids have entered into a new corn and soybean distribution agreement.
The agreement is part of Pioneer’s PROaccess business strategy, under which the company gives independent seed companies access to germplasm developed by Pioneer researchers.
Seed produced under the arrangement will be marketed under the Power Plus brand.
Latest: 
