×
×
homepage logo

BRIAN HOOPS

By Staff | Oct 31, 2014

Judge denies Cargill suit

A federal judge has denied Cargill Inc’s attempt to block a former executive of its meat-packing unit from working for rival JBS SA to prevent the potential loss of trade secrets.

U.S. Judge Raymond Moore in Denver, Colorado ruled on Monday that although Jason Kuan “did once have specific knowledge of Cargill’s trade secrets, his knowledge now is generalized.”

In August, privately held Cargill sued Kuan, who led a meat unit in Canada, alleging that he copied hundreds of confidential documents after he received a job offer from JBS in Colorado. Cargill, one of the top U.S. meat producers, did not dispute that Kuan returned the documents, according to a court filing.

The company had asked Moore to issue a temporary restraining order and preliminary injunction forbidding Kuan from working for a competitor for one year.

Missing soybeans

A mysterious disappearance has an Iowa farmer pleading with the culprits to return his pride and joy – 1,600 bushels worth of soybeans.

La Motte farmer Matt Schuster says he is out more than $18,000 after someone combined about 18 acres of his crops in Jo Daviess County.

Pork production

USDA economist Robert Johansson said U.S. pork production in the year ahead will exceed beef production for the first time since 1952.

He said USDA is forecasting slightly lower beef production for next year.

“This carries on with the tight market that we’ve seen over the last couple years due to the previously very high feed costs in the livestock sector,” Johansson said. “Herd size was down substantially in 2011 and 2012.

“In 2013 we started to rebuild herd size. Despite that fact, we expect slightly lower beef production next year. Pork production, on the other hand, and broiler production

have rebounded in response to the lower feed prices.

CORN ANALYSIS

Corn closed the week 5 cents higher.

Last week, private exporters announced sales of 101,600 metric tons of corn to an unknown destination.

Weekly export sales of corn showed corn sales of 40.6 million bushels.

In the weekly crop progress report, the USDA announced corn harvest progress advanced to 31 percent complete nationwide, well below the five-year average of 53 percent complete.

Plenty of carry is offered this year, giving producers an incentive to place corn into storage with the opportunity to earn a higher price later.

Unfortunately, the current fundamental situation does not indicate the corn market will be able to meet the carry being offered. Thus, producers should sell the carry if they have on-farm storage and look to re-own later if fundamentals change.

Corn normally has a seasonal rally early into October and that continues during the month, before prices stall and seasonally work lower until the Thanksgiving timeframe.

Corn is following that pattern and prices look to work lower under the weight of record yields unless additional harvest delays develop.

We have recommended producers to move to 100 percent of this year’s inventory on this rally and transfer the pricing risk via the futures and options market.

Strategy and outlook: Producers are 100 percent sold of the 2014/15 crop. They should sell 10 percent of 2015 production at $4.16 against December 2015.

SOYBEANS ANALYSIS

Soybeans closed the week 24.5 cents higher.

Last week, private exporters reported sales totaling 537,000 mt to China and 113,000 mt to an unknown destination.

Weekly export sales of soybeans showed sales of 79.6 mb.

In the weekly crop progress report, the U.S. soybean harvest is 53 percent done compared to the average of 66 percent complete normally.

Soybeans normally has a seasonal rally early into October and that continues during the month, before prices stall and seasonally work lower until

the Thanksgiving timeframe.

Soybeans are following that pattern and prices look to work lower under the weight of record yields unless additional harvest delays develop.

We have recommended producers to move to 100 percent of this year’s inventory on this rally and transfer the pricing risk via the futures and options market.

Unlike last year, there is a large carry offered by the market making storing the crop until next spring and summer a viable option.

Producers should sell this carry as the market will be unlikely to meet it given the current fundamental situation.

Strategy and outlook: Producers are 100 percent sold of 2014/15 production. They should sell 10 percent of 2015 production at $10.05 against November 2015.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.

Brian Hoops can be reached at (605) 660-1155.

Please Enter Your Facebook App ID. Required for FB Comments. Click here for FB Comments Settings page