Afternoon Commodities Report from Allendale for September 20, 2012

Posted on September 20, 2012


Corn closed under $7.50 and soybeans are almost down to $16 a bushel. While I called the top in corn prices in early August,  I expected prices to stay closer to $8 per bushel until there was more clarity about the weather and planting season in South America. However, many poultry producers have recently sought to renegotiate contracts. Even at $7.50 per bushel these producers say they are losing roughly ¢0.10 per pound of poultry sold. New export sales were 69,900 metric tons, which was well below expectations of  350,000 – 450,000.

Closing Prices (per bushel unless otherwise stated)

Contract Commodity Last Change
Dec 2012 Corn $7.4625 -0.1025
Dec 2012 Wheat $8.8150 0.0000
Nov 2012 Soybeans $16.1850 -0.5100
Sep 2012 Soybean Oil (Metric Ton) $54.6100 -1.2200
Sep 2012 Soybean Meal (Metric Ton) $482.2000 -17.5000

Afternoon Commodities Report from Allendale

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Disclosures:

The Author of this post has a bear credit spread in Corn futures. Neither the author of this article or any family members own any futures contracts or options on futures in any of the other commodities mentioned in this article. For a complete disclosure of the policy on ownership of stocks/commodities written about or recommended, please see about page

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