US Retail Gasoline Average Drops 4.1cts to $2.704 Gal --The average price for all formulations of regular grade gasoline dropped 4.1cts to $2.704 gal for the week-ended Aug. 23, the Energy Information Administration reported, which is 7.6cts above the comparable year-ago national average. The weekly average is 20.1cts below the 18-month high of $2.905 gal reached during the week-ended May 10. In the
Midwest
, gasoline prices at the pump slid 5.4cts to $2.627 gal
On Highway Retail Diesel US Average 2.2cts Lower at $2.957 Gal --The national average for on-highway diesel fuel fell 2.2cts to $2.957 gal for the week-ended Aug. 23, according to the Energy Information Administration, sliding from a nearly three-month high reached on Aug. 9. The weekly average is 28.9cts above the comparable year-ago period. The
U.S.
average for on-highway diesel fuel posted an 18-month high of $3.127 gal on May 10. On-highway diesel prices dropped 1.7cts at the
Gulf
Coast
to $2.916 gal, while
Midwest
prices sank 2.6cts to $2.927 gal.
IowaFarmers Participate in Biomass Harvest --Eighty-five farmers in and around
Emmetsburg
,
Iowa
, have become early adopters by participating in the world's largest biomass harvest for cellulosic ethanol ever. Over the next year, nearly 60,000 tons of bone-dry light corn stover and corn cobs will be delivered to Project Liberty in an effort to refine biomass harvesting, storage and transportation techniques in time for the production debut in early 2012. Farmers have been concerned about the effect of removing the cobs and stover on soil health and yield. Early tests by
Iowa
State
University
show that these will be minimal as long as no more than approximately 25 percent of the biomass is removed. In fact,
Iowa
State
is working on creating variable rate removal technology that will ensure that only the appropriate amount of biomass is removed from each field.
On Farm Storage --As harvest is beginning and you prepare to put this year’s bounty in the bin – here are a few tips and tidbits about grain storage and preparation. You have worked all year to raise your crop and invested lots of dollars to get it too this stage -- to capture the maximum value for your crop when it is delivered to market you need to complete the process which includes preparing and storing the crop in a manner that allows for it to maintain grain quality.
Storage Preparation --Insects are either already in the bin before filling or will enter later. The following steps will aid in the prevention of insect problems in your stored grain.
1. Clean bins thoroughly prior to filling.
2. Repair cracks and crevices where moisture and insects may enter.
3. Avoid filling bins with new crop where old crop already exists.
4. Clean and check the aeration system. Foreign material may collect in ducts creating an excellent insect breeding environment and obstructing airflow.
Grain Storage --More grain is lost because of improper storage than for any other reason. Most common problems are as follows:
1. Inadequate observation of grain during storage: not checking grain frequently.
2. Improper grain management, not using aeration to control grain temperature.
3. Pockets of fines (broken kernels, weed seeds and trash) restrict airflow and provide food for insects and mold.
4. Grain began to deteriorate because it was held too long without adequate aeration prior to drying.
5. Improper cooling of grain after drying. Grain must be dry and cool before storing.
6. Poor initial grain quality or not dried to a safe moisture content.
7. Improper or lack of insect control.
Corn Crop Condition Reported for the week ending August 29th -- according to the USDA dry weather east of the Mississippi continues to take a toll on the corn crop -- however on a national basis they view the corn crop quality as unchanged which would be a counter seasonal trend -- typically as the calendar rolls to September we witness a decline in crop quality similar to what we see occurred in Illinois and Indiana last week -- from a maturity standpoint the USDA predicts that 94% of the crop has reached the dough phase -- 73% of the crop has dented and 17% of the crop is mature -- here in Illinois those numbers are 99 / 87 / 34 respectively -- at our Effingham elevator location we have been receiving a steady stream of new crop corn with most of the moistures running in the upper teens
State
Poor/Very Poor
% Change
Fair
% Change
Good/Excellent
% Change
Illinois
13%
+1
25%
+1
62%
-2
Indiana
16%
+1
27%
+1
57%
-2
Iowa
11%
-1
20%
-1
69%
+2
Missouri
22%
-1
30%
+3
48%
-2
Nationally
10%
0
20%
0
70%
0
Soybean Crop Condition Reported for the week ending August 29th -- just like corn the USDA estimates that east of the Mississippi the lack of precipitation is causing the crop to deteriorate but nationally things remain in fairly good shape as we enter the home stretch to maturity -- on a national basis the USDA predicts that 96% of the crop is setting pods and that 8% are dropping their leaves -- here in Illinois those numbers are 98% setting pods and 5% dropping leaves
State
Poor/Very Poor
% Change
Fair
% Change
Good/Excellent
% Change
Illinois
11%
0
30%
+3
59%
-3
Indiana
17%
0
28%
+1
55%
-1
Iowa
10%
-1
21%
0
69%
+1
Missouri
23%
-1
32%
+1
45%
0
Nationally
12%
-1
24%
+1
64%
0
EFFINGHAM EQUITY GRAIN COMMENTARY 8-31-10
TECHNICAL SET UP IN NOVEMBER BEANS --When analyzing technical’s in the futures market, we like using retracements for establishing price objectives and moving averages to determine a change of trend. For retracements, we look at the 38%, 50% and 62% retracement points. On the moving average (MA), we like the 21 day, 40 day, and 50 day. The 3 day and 10 day can be followed on a short term basis, while the 100 day is very long term. We bring these technical indicators up today as we believe the bean market is setting itself up for a significant top and we are determining this by the use of the technical’s mentioned above. Looking back on the Nov bean chart, a high close was established in Nov ’09 near 10.52, we broke to a low close by the end of Dec ’09 to 9.74, the 50% retracement was at 10.13 and 62% retracement was at 10.22, we bounced back to 10.24 in early Jan before breaking to a low near $9.00 at the end of Jan. A low close on the Nov bean chart was established at the beginning of June at 8.94, we bounced at the end of June to a close of 9.39, posted a retracement back and then rallied at the end of July and early August. Now, we just posted a high close in early August at 10.44, a low close last week at 9.99. The 50% retracement of this move is 10.21 and 62% retracement is 10.27, a recent high close is 10.26. We now bring in the 40 day MA support on Nov beans at 9.98. Therefore, if key support at 9.99 (recent low) and 9.98 (40 day MA) is violated, this will be a textbook technical sign of a top in place. On final though looking at the charts and this is with corn, doesn’t this weeks trade and last weeks trade look eerily similar with the only difference is last week we bounced off of support and this week we are finding resistance above the market. Last week, Dec corn broke on a Tuesday to a low of 4.15 ¼ , on Wednesday we trade to a low of 4.15 ½ and then closed well of those lows that day and rallied the last two days of the week. This week, Dec corn posted a high on Monday of 4.45 ¼ , today it traded to a high of 4.44 ¾, then settled well off of those highs. We will have to wait and see how the rest of week plays out, but for how weak beans and wheat look, corn will be vulnerable as well to a price break. To discuss the markets further give us a call at Prime Ag 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 run increased by 11,000 head and carcass weights increased by 2 pounds as the cash market drew large runs of market ready cattle to town -- on the pork side we find lighter weight pigs as packer margins are very strong currently and packers are pulling pigs to town early by offering attractive values to producers to get them to ship pigs about 1 week ahead of schedule. The pork sun last week was 37,000 head greater than the week prior.
Prior Week Slaughter (Head)
Average Carcass Weight
YTD Slaughter
YTD % Change
Beef
678,000
777
22,075,000
1.4%
Pork
2,110,000
200
69,827,000
- 4.3%
Tariff Won’t Slow
U.S.
Pork Exports to
Mexico
--
Mexico
's 5 percent tariff on
U.S.
pork will not stop imports of the meat, according to a Reuters report. Demand for
U.S.
pork south of the border will remain robust because it will remain cheaper than pork from other sources in a country that has developed a strong appetite for pork. The tariff is in retaliation for the
United States
limiting access of Mexican trucks to
U.S.
roads. In three of the past five years, at least 20 percent of
U.S.
pork exports have gone to
Mexico
. Last year, that was only about 4 percent of total
U.S.
pork production, but enough that
Mexico
will be hard-pressed to replace it from other sources at competitive shipping rates. As a result, analysts expect a quick resolution of the trade dispute, with the tariff removed, or else they say
Mexico
will keep buying
U.S.
pork despite the tariff. "It is something the trade is confident will be worked out sooner rather than later," said Don Roose, analyst with U.S. Commodities
Frozen Pork Supply Plunges-- Frozen pork supplies were down 28 percent from last year and down 5 percent from a month ago, according to Meatingplace.com. Pork belly stocks were down 64 percent from last year and down 38 percent from last month. Only ham and variety meats inventories grew in July. Higher wholesale pork prices drove significant frozen inventory liquidation, putting pork inventories at their lowest level since 2004, according to Steve Meyer and Len Steiner in the CME Group’s Daily Livestock Report. Total red meat supplies in freezers on July 31 were down 20 percent from last year and down 1 percent from last month, according to USDA’s Cold Storage report issued Friday, Aug. 20.
FDA Chief Wants More Food-safety Authority-- Farms like the two involved in a massive recall of more than a half-billion eggs are rarely inspected by the federal government, officials say, as the Food and Drug Administration has traditionally reacted to outbreaks instead of working to prevent them. Food and Drug Administration chief Margaret Hamburg said her agency hasn't had enough authority to help prevent outbreaks like the more than 1,000 cases of Salmonella poisoning linked to the eggs from two
Iowa
farms. Giving a series of network interviews,
Hamburg
said the FDA is taking the issue "very, very seriously." At the same time, she said Congress should pass legislation stalled in the Senate that would increase the frequency of inspections and give the agency authority to order a recall. Companies now have to issue such recalls voluntarily. "We need better abilities and authorities to put in place these preventive controls and hold companies accountable,"
Hamburg
said.
USDA and Department Of Justice Hold Workshop Focused on Competition Issues in the Livestock Industry --The U.S. Department of Agriculture and the Department of Justice held the fourth of five joint public workshops to explore the appropriate role for antitrust and regulatory enforcement in American agriculture in
Fort Collins
,
Colorado
last Friday. The workshop, led by Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, examined competition in the livestock industry and featured panel discussions on trends in the livestock industry, market consolidation and market transparency. The workshop also included opportunities for public comments.
Iowa
On Farm Storage --
Frozen Pork Supply Plunges
USDA and Department Of Justice Hold Workshop Focused on Competition Issues in the Livestock Industry --
