US Retail Gasoline Up 4.7cts to $2.702 Gal 5-Week High --The average price for all formulations of regular grade gasoline increased 4.7cts to $2.702 gal for the week-ended March 1, according to the Energy Information Administration. The average price is up 76.8cts gal compared with the same week in 2009. Gasoline is averaging the least in the
Gulf
Coast
and the most along the West Coast. In the
Midwest
, prices rose 3.5cts at $2.640, 75.3cts more than the comparable year-ago period.
On Highway US Diesel Fuel Average Up 2.9cts to $2.861 Gal --The national average for on-highway diesel fuel increased 2.9cts to $2.861 gal for the week-ended March 1, the Energy Information Administration reported. The weekly average is 77.4cts above the comparable year-ago period. In the
Midwest
region, prices increased 3.1cts to $2.825 gal which is 79.5cts more than last year.
Corn Prices and U.S. Dollar Value Connection Examined-- It is not uncommon for daily fluctuations in corn prices to be attributed to fluctuations in the value of the U.S. dollar relative to other currencies. So, what is the connection? From the side of the
U.S.
corn importer, a lower valued dollar in relation to the currency of that country, all else equal, is in effect a reduction in the price of corn. A lower price to the importer might be expected to result in larger imports. That is, there would be a movement down the demand curve to a new, larger equilibrium of quantity supplied and quantity demanded. – to read the entire article click here
Brazil 2009-10 Soy Harvest Seen At 32% As Of March 5 --Brazilian farmers have harvested 32% of the upcoming 2009-10 soy as of March 5, local agricultural consultancy Celeres said in a report on Monday.
Brazil
’s soy harvest was at 26% as of Feb. 26 and 26% at the same time a year ago, Celeres said.
Brazil
’s soy harvest also remains ahead of a five-year average of 22% of soy harvested at this time of year, Celeres said. Farmers started harvesting their beans earlier this year in parts of Mato Grosso, the No. 1 soy-producing state. They hoped to take advantage of higher prices by reaping their beans earlier than farmers in other regions. As a result, farmers in Mato Grosso had harvested 55% of their upcoming soy crop as of Friday despite recent rainfall. They had harvested 48% at the end of the prior week. The soy harvest in
Parana
,
Brazil
’s No. 2 soy-producing state, reached 33% as of March 5 versus 28% in the previous week.
Rio Grande
do Sul, the No. 3 soy producer, which traditionally is the last state to begin harvesting, had harvested 1% of its beans by March 5. The country’s harvest is expected to be a bumper 65.7 million metric tons of soybeans, up 13% from 2008-09, Celeres said.
EFFINGHAM EQUITY GRAIN COMMENTARY 3-10-10
MARCH USDA REPORT FIRST IMPRESSIONS --First impressions of the report are the most important and when we first saw the corn ending carryout at 1.799 bil bu, we thought slight bearish, not a big deal. When we saw the bean ending carryout at 190 mbu, we though slightly bullish, not a big deal. When we saw the wheat ending carryout at 1.001 bil bu, we were shocked as it threw out our theory that the number crunchers in
Washington
have an idea where they want ending carryout and then work backwards to make it all fit. This is probably an accurate number as carryout could grow further, but the willingness for the USDA to post a 1 bil bu wheat carryout in Mar is a little surprising. Now that this report is behind us, weather and the planting intentions report at the end of Mar will be a focus. Our expectations for the market are the same after this report as it was before, a two sided trade with some rally potential over the next 4 to 6 weeks. Give us a call at Prime Ag if you need some help developing a marketing plan for both old and new crop – 1-800-211-1757.
"Trading commodity futures and options involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Opinions, market data, and recommendations are subject to change at any time. The information contained on this document does not constitute a solicitation to buy or sell futures or options by Prime Agricultural Investors, Inc.”
Federally Inspected Slaughter -- last week's cattle slaughter was 15,000 head fewer than the week prior and at a constant carcass weight of 775 pounds -- carcass weights are still lagging behind a year ago by 18 pounds -- therefore on a year to date basis we find that through the first 9 weeks of the year that total beef tonnage is down 1.3% -- on the pork side we find that just 5,000 more pigs came to town last week than the week before -- the pork carcass weight was also at a consistent weight from the prior week and is 2 pounds lighter than a year ago -- year to date pork tonnage has been reduced almost 7% -- next week's slaughter levels will likely be lower as the Tyson Foods plant in Logansport, Indiana suffered extensive fire damage last Friday morning and at last report the earliest that production can resume will be this coming Saturday at best -- at 15,000 head per day it will be tough for the balance of the industry to absorb 100% of the market ready pigs this week.
Prior Week Slaughter (Head)
Average Carcass Weight
YTD Slaughter
YTD % Change
Beef
617,000
775
5,772,000
0.4%
Pork
2,168,000
202
19,614,000
- 6.2%
Tyson Foods Inc. said it resumed pork processing Saturday at its
Logansport
,
Ind.
, plant following a fire that damaged the roof over the facility's slaughter floor, but slaughter operations are still suspended. Having received approval from USDA inspectors, Tyson expects some processing operations to continue throughout this week, spokesman Gary Mickelson told reporters in an e-mail. However, slaughter production remains suspended due to the fire damage. "The roof has been repaired and we're in the process of replacing equipment and doing electrical rewiring," Mickelson said. "It currently appears it could be late this week or early next week before we're able to resume slaughter operations." Tyson said it is rerouting some hogs that would go to
Logansport
to plants in eastern
Iowa
. Mickelson said the specific cause of the fire has not been confirmed, but it involved equipment used to singe hair on pork carcasses
Russia Re-Opens for Pork Imports --The U.S. meat complex in general and U.S. pork industry in particular had some very good news confirmed on Friday as USDA announced that it had reached an agreement to re-open Russia as a pork export market. The re-opening is quite important to the
U.S.
pork industry.
Russia
purchased $476 million of
U.S.
pork in 2008, ranking fifth among all markets. Sales volume fell to $289 last year due to the economic downturn, a summer ban on
U.S.
imports predicated by H1N1 and the progressive delisting of plants last fall.
Russia
was a minor customer as recently as 2003 when it purchased only $7.6 million worth of
U.S.
product.
USDA Chief Promises Stronger Agricultural Export Strategy --U.S. Agriculture Secretary Tom Vilsack on Friday said the government would overhaul its strategy for promoting agricultural products abroad and work to increase the acceptance of biotechnology in foreign countries in a bid to improve the economy. Vilsack, speaking at the annual Commodity Classic conference, said the U.S. Department of Agriculture would drop its “one-size fits all” approach to promoting agricultural exports in favor of tailored marketing programs for different countries. The effort is part of President Barack Obama’s goal of doubling all
U.S.
exports within the next five years. “One size does not fit all,” Vilsack told a crowd of grain and oilseed producers from across the country who gathered for the conference. In explaining the new approach,Vilsack said the USDA will put resources in countries with “growth potential” such as
South Africa
to educate them on the quality of
U.S.
products.
China
has a rapidly rising middle class but needs special attention to address technical concerns about phytosanitary issues, he said. Agriculture is one of the few
U.S.
sectors to generate a significant trade surplus, which was $23.2 billion during the year that ended Sept. 30, 2009.
Cellulosic Ethanol Support Lags Ambitions --Makers of cellulosic ethanol warn that ambitious
U.S.
government goals to significantly boost production of the technologically advanced fuel over the next 12 years won’t be met without stronger backing from
Washington
. On Feb. 3, the U.S. Environmental Protection Agency finalized a rule that will require 36 billion gallons of biofuels production in 2022. Half of this is to come from cellulosic ethanol, which is derived from nonfood plant material such as farm waste instead of corn or sugar cane. The same day, the Obama administration announced a program to help set up a supply chain to collect feedstock such as corn stover or forest wastes. While these efforts are critical, industry executives say they are frustrated because they have yet to secure government loan guarantees or enough private financial backing to build the first commercial-scale cellulosic plants. While investors have said they see potential for cellulosic ethanol in the market, it is more difficult to extract the needed sugars from tougher biomass than corn kernels, and they’re waiting for proof of economic feasibility before funding anything beyond demonstration plants. “We will fall short of the 2022 [EPA] mandate by a good measure,” said Brian Foody, chief executive of privately held Iogen Corp., a Canadian company vying to build a plant to export biofuels to the
U.S.
He says that without government backing through favorable policies, such as tax incentives and risk sharing with the private sector, the industry will be unable to meet the target.
USDA Chief Promises Stronger Agricultural Export Strategy --
