Obama Delivers No Defining Programs For Agriculture

President Barack Obama, in his State Of The Union address last night, did not deliver any defining moments for the markets.  Stocks are up in overnight trading more because of what Turkey’s Central Bank did than because of anything the President said.  \r\n   Turkey’s Central Bank, at an emergency policy meeting Tuesday night, raised its overnight lending rate to 12% from 7.75%, according to Dow Jones News’ North American Morning Briefing.  Officials boosted other rates as well, like its one-week repo rate, now its main policy tool, to 10% from 4.5%.\r\n   The moves were made to stem steep drops in the Turkish Lira, but they may not be enough to bring in the amount of capital the country needs, Dow Jones said.  However, the Central Bank’s move did make it harder to short the Lira.\r\n   Turkey’s move follows similar moves in Brazil and India, according to AgResource, and Argentina imposed a $2,000 limit on the purchase of US dollars.\r\n   Grain and soybean futures are lower in overnight trading as the cold temperatures gripping much of the nation’s midsection begin to abate.  Warmer temperatures mean a little easier travel, and many traders hope for more farmer selling.\r\n   The extreme cold and ice has kept many farmers bottled up inside and not selling corn and soybeans stored on their farms.  Cash basis levels crept higher, and there is hope they will entice more movement.\r\n   However, forecasts show the polar air mass has by no means retreated.  Rain, snow and ice descended on southern Gulf states Tuesday, a once-a-century event, and caused massive travel problems.  The forecast calls for more cold today before moderating later in the week.\r\n   This National Weather Service map shows the precipitation is moving out of Texas, Louisiana and Alabama but is expected to continue in parts of Georgia and Florida before turning to snow in coastal North and South Carolina. <a href=\”http://www.hpc.ncep.noaa.gov/noaa/noaad1.gif\”>Your text to link…</a>\r\n   South American weather problems are declining in importance now that Argentina is getting soaking rains.  Parts of Brazil are a little dry, but it’s a tossup whether it good or bad.  It stresses growing crops but aids the soybean harvest, and besides, in that tropical climate, it’s hard to sustain a dry spell at this time of year.\r\n   Rumors persist that China is cancelling some soybean orders in favor of obtaining cheaper product from Brazil.  So far, there has been no confirmation of this from the USDA, although new purchases have declined, and some exporters were said to be trying to sell product back into the cash market.\r\n   No cash cattle trading was reported in the Plains through Tuesday.  Prices last week were record high, ranging from $146 to $150 per cwt on a live basis, up about $5 from the previous week.\r\n   Wholesale beef movement has struggled lately as this month’s sharp price gains took prices to record highs again and again, and the USDA’s cutout values fell as a result.  The floundering cash beef market and the overbought condition of the futures markets have many traders thinking a top was set last week or will come this week.\r\n   The USDA’s choice beef cutout Tuesday was reported at $235.80 per cwt, down $2.24 on the day, and the select cutout was off $3.39 at $233.67.  The choice/select spread widened to $2.13, and there were only 67 loads of fabricated product sold into the spot market.\r\n   The CME Feeder Cattle Index for the seven days ended Monday was $171.35, up $0.13, while the Jan futures contract settled Tuesday at $171.42 per cwt, up $0.45.\r\n