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January 2009 Archive for Market Watch

RSS By: Alan Brugler, AgWeb.com

Alan Brugler is the President of Brugler Marketing & Management, and the primary analyst and advisor.

Depressed Value

Jan 30, 2009

You can argue whether we’re in a recession, depression, deflation or lull. Whatever it is, prices for ALL of the ag commodities we track were lower this week than they were the prior week. Rice saw the largest decline at 7.69%, but everything was lower. This smacks of depressed demand relative to the supplies available, perhaps with a little bit of end of month liquidation selling thrown in. Some would argue that this is just the introductory phase of the February Break, a traditional creature of on farm cash flow demands (forced selling of commodities to meet farm and equipment payments) which has been AWOL for the past couple years.
 
Below is a table showing the net weekly change of selected agricultural futures contracts: 
 
 
Corn futures were down 12 cents for the week. Weekly export sales posted a marketing year high of 1.108 MMT (million metric tonnes), led by a Japanese purchase of 406,100 MT. Despite talk of completion from cheaper Australian feed wheat, Japan continued to be a buyer this past week based on business announced under the daily reporting system.
 
Soybeans were down in line with the value of the products, losing 2.9%. Technical resistance and improved Argentine and Brazilian growing weather weighed on the market. South American soybeans are just now approaching the main flowering and pod setting period after riding out a period of hot and mostly dry weather (Argentina) during their vegetative stage. Some of the early microclimate areas of Brazil are also already harvesting some new crop beans, freeing up some supply. This is likely one reason that China was more active in the Brazilian market a week ago. Meal futures were also technically overbought, and even a bullishly construed Census meal stocks figure on Thursday wasn’t enough to get prices higher on the week. US meal stocks were still burdensome on January 1 at 415 thousand tons.
 
Wheat futures were lower at all three exchanges, with CHI the weakest. The biggest problem was the weekly export sales report on Thursday. Rising prices for Black Sea origin wheat had the market convinced that the US was becoming more competitive. However, the net weekly export sales were only 23,500 MT after deducting a previously announced Nigerian cancellation of 276,600 MT. The net sales were a marketing year low. Egypt did buy 60,000 MT of US wheat in a Friday tender, but the demand side is still iffy. The IGC projected world 2009 wheat production at 650 MMT, well below this past year’s 687 MMT. Of course part of that decline is for the US, where winter wheat acreage is known to be down, and spring wheat acreage is uncertain.
 
Cattle futures were down 67 cents for the week. That was probably a victory for would be bulls, given sharply lower wholesale prices for the week, and a lower cash cattle trade. There was a little caution ahead of Friday afternoon’s Cattle Inventory report, which gives the most complete picture of the cow and calf side of the business. Cow and beef heifer numbers were expected to be smaller, and they were. The calf crop was also down, and smaller than the average trade guess ahead of the report.
 
Hogs were off 37 cents for the week. February futures were first above the CME Lean Hog Index, then below it, and then trying to get back toward it. Expiration is scheduled for February 13. Wholesale prices continue to point to lower cash hog prices than those being reported, which is causing a bit of confusion for futures values. Packer margins would appear to be squeezed, unless they have some high priced forward contracts for product that they are filling with cheaper nearby pork.
 
Cotton futures were down 2.4% for the week. Prices rose to the highest levels since October on Tuesday, which triggered some cash cotton movement. The rally took another hit on Thursday when USDA showed smaller than expected weekly export sales (107,200 RB of upland) for the week ending January 22. China was a very small buyer at 19,700 RB, and is expected to show even smaller activity in next week’s report, which will span their holiday week.
 
Market Watch:  Now that January is over, the fun begins. February is the price setting period for the crop revenue insurance products, using the monthly average of December corn and November beans. It is also the last opportunity for the market to influence producers as they respond to USDA Planting Intentions surveys. The official survey date is March 1, although the results won’t be compiled and released until the end of March. If there is an Acreage War for 2009, February is when one of the major battles is usually fought. Price is the main weapon for both sides. We’ll also get routine USDA weekly reports like Export Inspections on Monday, and Export Sales on Thursday. February Live Cattle options and March cotton options expire on Friday the 6th.
 
There is a risk of loss in futures and options trading. Past performance is not necessarily indicative of future results. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on Ag Market Professional or SRR subscriptions, or visit the web site @ www.bruglermktg.com.

Midwinter Lull

Jan 23, 2009
Other than for rice, it was a comparatively tame week in terms of net price changes. Rice fell 6.56% in the March contract, which was seeing longs trying to roll to the May contract and finding few willing buyers to come in. In addition to the dispute with Mexico over fungus, India eliminated the ban on exports of basmati rice. Cheaper soybeans also meant slightly less competition for rice acres.
 
The bull leader for the week was the cotton market, which ignored stock market worries about slow global demand and rallied 3.3%. A much larger than expected weekly export sales total on Friday morning boosted prices 1.71 cents per pound. Thus, that one development accounted for the entire net gain on the week. Chinese buying was also much larger than we’ve seen recently. When combined with the LDP, prices to the farmer are getting to the upper end of the range seen since harvest.
 
Below is a table showing the net weekly change of selected agricultural futures contracts: 
 
Market Watch
 
 
 
 
 
 
 
 
 
 
 
Wkly
Wkly
 
01/02/09
01/09/09
01/16/09
01/23/09
Change
% Change
March Corn
$4.12
$4.11
$3.91
$3.91
0.01
-0.13%
March CHI Wht
$6.11
$6.30
$5.78
$5.83
0.04
0.78%
March KC Wht
$6.34
$6.51
$6.09
$6.11
0.02
0.25%
March MGE Wht
$6.55
$6.80
$6.53
$6.61
0.08
1.23%
March Soybeans
$9.77
$10.36
$10.20
$10.09
0.11
-1.08%
March Soy Meal
$300.20
$314.50
$316.00
$318.30
2.30
0.73%
March Soy Oil
$33.88
$36.72
$34.59
$33.60
0.99
-2.86%
Feb Live Cattle
$87.10
$83.10
$84.52
$82.67
1.85
-2.19%
Jan Feeder Cattle
$95.60
$94.10
$95.00
$93.65
1.35
-1.42%
Feb Lean Hogs
$63.85
$62.45
$59.95
$58.92
1.03
-1.72%
March Cotton
$48.91
$49.32
$49.00
$50.64
1.64
3.35%
March Oats
$2.12
$2.30
$2.23
$2.15
0.08
-3.37%
March Rice
$15.12
$14.65
$13.65
$12.75
0.90
-6.56%
 
Corn futures are caught in a new trading range after taking the post-report price hit caused by the larger USDA reported corn stocks and higher projected ending stocks. Bulls got a little bit to chew on, with Argentina cutting projected production to well below USDA’s number. On Friday, USDA reported the largest weekly export sales total for the marketing year to date, proving once again that the cure for low prices is low prices. At this point we can only say that we’ve treated the disease, not that we’re observing a healthy bull romping around!
 
Soybeans were down a net 11 cents for the week. Bulls were feeling fine at midday on Friday, following another strong weekly Export Sales number from USDA. China was again a large scale buyer. However, the market had been tipped off to that fact by sales previously announced under the daily reporting system. Pre-weekend profit taking in the soy oil pit knocked 73 points off of the nearby bean oil. At current oil yields, that alone was worth more than 8 cents per bushel. Soybean futures retreated that much and more. South American weather, specifically Argentine weather, continues to be a focus. It is difficult to assess dryness related yield losses in a crop that hasn’t yet started flowering (equivalent of late June in the U.S.). Soil moisture is definitely way down, but showers were seen and more were expected for this coming week in the key Cordoba province. Other areas like Formosa and La Pampa looked to miss out. Stay tuned, the weather forecasts vary by day and by forecaster!
 
Wheat futures were higher at all three exchanges. The US has won a few battles in the export market, including two recent sales to Egypt. Futures rallied on Friday despite a big Nigerian cancellation, because other countries were starting to step up activity. Prices for Black Sea origin have also firmed up a bit, and Argentina’s cut in projected production to 8.3 MMT also suggests very limited exports from that country. Most of their wheat goes to Brazil.
 
Cattle were down $1.85 for the week. Wholesale prices dropped during the week despite slightly reduced slaughter tied to the government holiday on Monday. Friday saw a little short covering ahead of the Cattle on Feed report. That caution by the bears was justified. The report showed lighter than expected placements during December, and larger slaughter than the average trade guess had anticipated. The net result was 11.234 million head on feed as of January 1, 2009. That’s 92.87% of last year’s figure.
 
Hogs marked time, with Feb drifting $1.03 lower over the course of the week to meet the rising CME Lean Hog Index (used to settle the contract at expiration in mid-February). At one point in late 2008 the Feb futures had a $9 premium to the cash index. That had narrowed to less than $2 by the middle of this past week. The real puzzle is how the packers can afford to pay as much for the cash hogs as they are, given the cutout values being reported. The cutout is usually above the CME Index, not several dollars below it.
 
Market Watch:  Livestock traders will begin the week reacting to Friday’s USDA Cattle on Feed report. Grain traders may have to make minor adjustments due to the expiration of the February serial options on the 23rd. It’s the end of the month, and there will be some book squaring adjustments by the various funds, CTA’s and pools. Census will also issue an oilseed crush report on Thursday morning, accompanied by the monthly cotton consumption numbers. USDA’s semi-annual Cattle Inventory report is scheduled for Friday afternoon. Also lurking in the background is the FOMC (Fed) meeting scheduled for the 28th. Further interest rate cuts are not expected, but surprises are always possible.
 
There is a risk of loss in futures and options trading. Past performance is not necessarily indicative of future results. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on Ag Market Professional or SRR subscriptions, or visit the web site @ www.bruglermktg.com.

USDA Data Rocks The Markets

Jan 20, 2009
 
The big slug of USDA reports on January 12 was well advertised, and everyone knew they had the potential to be market moving. That proved to be an understatement, as prices were limit down following the release of bearish ending stocks numbers in corn, soybeans and wheat. The sell off got a shove from concurrent weakness in other markets, and the ag markets spent the rest of the week trying to decide whether the big sell off was justified.
 
The big mover for the week was the live cattle market. February rallied $1.42 from the previous Friday, a gain of 1.71%. Index fund selling was a feature early in the week, but dried up by Thursday. They have been the only net long reporting category in the cattle market for several months. Their asset allocation models called for fewer cattle futures positions, and they were net sellers. The cash market environment was more bull friendly, with light packer offerings in the wholesale market boosting prices. That also gave the packers more spending money for cash cattle. They didn’t share it in the north, where most cash cattle were bought at $83-83.50 under frigid conditions. Southern trade was slow to develop.
 
Below is a table showing the net weekly change of selected agricultural futures contracts:
 
Market Watch
 
 
 
 
 
 
 
 
 
 
 
Wkly
Wkly
 
12/26/08
01/02/09
01/09/09
1/16/2009
Change
% Change
March Corn
$4.12
$4.12
$4.11
$3.91
0.20
-4.81%
March CHI Wht
$5.99
$6.11
$6.30
$5.78
0.51
-8.14%
March KC Wht
$6.16
$6.34
$6.51
$6.09
0.42
-6.45%
March MGE Wht
$6.53
$6.55
$6.80
$6.53
0.28
-4.04%
March Soybeans
$9.56
$9.77
$10.36
$10.20
0.16
-1.54%
March Soy Meal
$297.00
$300.20
$314.50
$316.00
1.50
0.48%
March Soy Oil
$33.12
$33.88
$36.72
$34.59
2.13
-5.80%
Feb Live Cattle
$86.10
$87.10
$83.10
$84.52
1.42
1.71%
Jan Feeder Cattle
$92.82
$95.60
$94.10
$95.00
0.90
0.96%
Feb Lean Hogs
$58.95
$63.85
$62.45
$59.95
2.50
-4.00%
March Cotton
$46.18
$48.91
$49.32
$49.00
0.32
-0.65%
March Oats
$2.31
$2.12
$2.30
$2.23
0.07
-3.26%
March Rice
$15.14
$15.12
$14.65
$13.65
1.01
-6.86%
 
Corn futures were down 20 cents for the week, a 4.8% loss that was much worse before a Friday short covering rally tacked on 25 ¾ cents to the value. USDA shocked the market with larger production and ending stocks estimates than had been expected, with the latter nearly 300 million bushels above the average trade guess. Demand continues to be a problem, with prices still above year ago levels and financial stress on both livestock and industrial users. USDA trimmed another 100 million bushels from projected ethanol use for the year, as more plants are being forced to take down time due to poor processing margins and or lack of financing. Export sales continue to run well under year ago on a week to week basis, and feed use is being hampered by reductions in hog and poultry numbers.
 
Wheat prices were lower at all three exchanges, again with all of the net loss for the week occurring in the post-report meltdown on Monday. USDA raised projected ending stocks to 655 million bushels. The US continues to lose most competitive export tenders to lower priced wheat out of the EU, Russia, Ukraine, etc. Egypt did buy one cargo for L/H February, and Japan continues to be a regular customer. USDA’s one bullish number on Monday, the smaller than expected winter wheat acreage of 42.098 million, was for the most part ignored because of record large world production this year and because USDA was still revising the world ending stocks figures higher.
 
Soybeans also posted a lower weekly close, down 1.5%. Product value was an issue, with soy oil losing 5.8% for the week. NOPA issued a bearish soy oil stocks number of 2.17 billion pounds. Since that came on a smaller than expected crush number, it meant weak demand. Biodiesel margins turned negative in December, slowing use. USDA’s crop estimate also was larger than the November number, when the trade had been looking for a smaller figure. Ending stocks were bumped up to 225 million bushels for next fall. The most bullish feature was continued strong Chinese buying interest in soybeans. Their weekly purchases have been above the 9 year average for all but one week since the beginning of the marketing year. A big spread between domestic price guarantees to farmers and the cost of imported beans has fueled strong import interest.
 
Cotton futures were down a modest .32 cents per pound for the week. Prices nosed above 50 cents, but were unable to stay there. USDA trimmed the size of last year’s crop, and cut projected ending stocks to 6.9 million bales from 7.1 million. However, export bookings were also trimmed to 12 million bales from 12.25 million and world demand continues to be constrained by a weak retail sales environment.
 
Hogs dropped 4% for the week, or $2.50 per hundred. Pork cutout values dropped during the week, limiting what packers were willing to pay for the hogs.  The main feature was the premium of the Feb futures to the CME Lean Hog Index, and the need to converge those prices before expiration in February. The basis firmed significantly during the week, as futures dropped and cash rose. Index fund liquidation of hog positions was also noted.
 
Market Watch:  The futures markets will be closed on Monday for the ML King holiday, with trading resuming on Globex at 6 pm CST on Monday night. The weekly Export Inspections report will be delayed until Tuesday release, and weekly Export Sales will be deferred until Friday. The main monthly reports from USDA will be Cold Storage on Thursday and Cattle on Feed on Friday. Friday will also mark the expiration of the February serial options in the grains, which settle against March futures.
 
© 2009 Brugler Marketing & Management LLC
 
Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on Ag Market Professional or SRR subscriptions, or visit the web site @ www.bruglermktg.com

Delivering on the Promise

Jan 09, 2009
The theme of last week’s column was “A Promising Beginning” for the New Year.  We did in fact get some follow through to that initial buying surge.  Cotton, soybeans and wheat all rallied to new highs for the move, and multi-month highs in most cases.  Other commodities struggled due to index fund and hedge fund portfolio balancing activity that required selling those commodities because they had become too large a part of the holdings of the fund.
 
Below is a table showing the net weekly change of selected agricultural futures contracts:
Market Watch
 
 
 
 
 
 
 
 
 
 
 
Wkly
Wkly
 
12/19/08
12/26/08
01/02/09
01/09/09
Change
% Change
March Corn
$3.81
$4.12
$4.12
$4.11
0.01
-0.36%
March CHI Wht
$5.63
$5.99
$6.11
$6.30
0.19
3.03%
March KC Wht
$5.83
$6.16
$6.34
$6.51
0.18
2.76%
March MGE Wht
$6.25
$6.53
$6.55
$6.80
0.25
3.82%
Jan Soybeans
$8.68
$9.52
$9.70
$10.38
0.68
6.96%
Jan Soy Meal
$267.50
$297.70
$301.00
$315.80
14.80
4.92%
Jan Soy Oil
$30.60
$32.82
$33.58
$36.50
2.92
8.70%
Feb Live Cattle
$86.78
$86.10
$87.10
$83.10
4.00
-4.59%
Jan Feeder Cattle
$93.50
$92.82
$95.60
$94.10
1.50
-1.57%
Feb Lean Hogs
$61.70
$58.95
$63.85
$62.45
1.40
-2.19%
March Cotton
$45.09
$46.18
$48.91
$49.32
0.41
0.84%
March Oats
$2.19
$2.31
$2.12
$2.30
0.18
8.49%
Jan Rice
$14.89
$15.95
$15.30
$15.08
0.22
-1.41%
 
Soybeans were a bull leader for the week, aided by a sharp rally up near 5% in the soybean meal market.  The market certainly acts like it has worked off the record cash meal inventories reported by Census in December, with limited delivery interest against January futures despite the big rally.  The bottom line is that increased product value allows crushers to pay more for the beans. Chinese firms have been active buyers, as they usually are at this time of the year.  That’s firmed up the basis after some initial weakness around the first of the year.
 
Corn futures were slightly lower for the week.  Lower fertilizer prices eased concerns about 2009 acreage, as breakeven calculations tipped back into the black for many producers.  Demand destruction is still a concern, with three more ethanol plants shutting down due to mechanical and financial problems.  Corn export sales are still very weak compared to last year.  In addition to the fundamental concerns, index funds were selling some corn futures from mid-week on to re-balance their portfolios.
 
Wheat futures got a little boost from bullish spillover from soybeans due to South American weather’s eminent harm to crops there which led wheat into positive gains. On Friday, South Korea bought 22,000 tonnes of US wheat while Taiwan and the Philippines intend to buy US wheat later this month. These provide some turnaround to the recent slowing of US wheat exports, thus added a bullish push to wheat futures. Weather forecasted for next week shows greater probability of damaging colder conditions in the Plains which spurred bullish news to wheat, since inadequate snow protection will not be present.
 
 
Cotton futures posted the highest trade on the March futures chart since October 22.  They have seen steady buying interest since the low on November 12th, leaving a nice clean uptrend line on the chart.  That support is near 48.37, and any break below that would likely signal the end of the current rally phase.  Export sales were much improved for the week ending January 1, usually a quiet period. China became more active, but buying from there is still limited by the struggles of the clothing retailers to sell goods to consumers who are cutting back on credit card debt.
 
Lower cash cattle sales around $2 less compared to last week reflected on live cattle futures and this week’s recent sell off in cattle futures provided the bearish pressure to have live cattle end lower for the week. Friday morning’s December 2008 Unemployment report by the Labor Department provided another bearish sentiment to cattle futures. Strong cash feeder sales during the second half of this week added bullish support to feeder cattle futures in spite of close to steady values of corn futures this week, though not enough for feeder cattle futures to end on the positive side for the week.
 
Friday’s settlement price for February lean hogs futures were lower compared to the previous week, but end higher for the day. Colder weather in the Midwest forecasted for next week will inhibit hog marketings, and the recent strength in pork product values provided bullish support to swine for the week. Steady to higher cash hog markets this week added further support. This morning’s unemployment report and steady feed grain futures values limited swine’s gains.
 
Market Watch:  We’ll start off the week with the USDA Super Bowl of reports on Monday morning. USDA will release Crop Production, Winter Wheat acreage, quarterly Grain Stocks and the monthly WASDE Supply/Demand estimates.  These will all be out at 7:30 am CDT on Monday morning.  That will drive Monday morning trade, and a key question will be whether there is enough bullish data to sustain the massive grain rally over the past 30 days or if we’ll see a “buy the rumor, sell the fact” reaction.  Index funds, hedge funds and CTA’s continue to move money around to address the opportunities they see for 2009.  That will continue for the first part of the week, as will the normal Goldman Roll adjustments to February contracts like cattle and hogs.
 
© 2009 Brugler Marketing & Management LLC
 
Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on Ag Market Professional or SRR subscriptions, or visit the web site @ www.bruglermktg.com

A Promising Beginning

Jan 05, 2009
  
We got the grain and livestock markets off to a modestly bullish start as the new year began. The January 2 closes were in positive territory vs. the previous week in all but the oats and rice markets. Admittedly, corn only gained a fraction of a cent vs. the Christmas week close, but it was a moral victory.
 
Hogs had a pretty convincing move, rising more than 8.3% for the week. A re-opening of the Mexican market for the bulk of the US meat packing industry helped firm up product value, as did the light holiday slaughter pace. Those product values had dropped to 5 year lows over the holidays. Packers were thought to need some hogs for the coming week and were expected to bid accordingly.  Some fund buying was also noted, and more could be in the works as the major index funds re-allocate for 2009. The market appeared willing to ignore the fact that the DJ-AIG index is cutting its model allocation for hogs by 12% vs. the 2008 allocation.
 
Below is a table showing the net weekly change of selected agricultural futures contracts:
 
Market Watch
 
 
 
 
 
 
 
 
 
 
 
Wkly
Wkly
 
12-Dec
19-Dec
26-Dec
2-Jan
Change
% Change
March Corn
$3.73
$3.81
$4.12
$4.12
0.00
0.06%
March CHI Wht
$5.13
$5.63
$5.99
$6.11
0.12
2.00%
March KC Wht
$5.38
$5.83
$6.16
$6.34
0.18
2.84%
March MGE Wht
$5.90
$6.25
$6.53
$6.55
0.02
0.34%
Jan Soybeans
$8.54
$8.68
$9.52
$9.70
0.18
1.89%
Jan Soy Meal
$257.70
$267.50
$297.70
$301.00
3.30
1.11%
Jan Soy Oil
$30.92
$30.60
$32.82
$33.58
0.76
2.32%
Feb Live Cattle
$83.32
$86.78
$86.10
$87.10
1.00
1.16%
Jan Feeder Cattle
$82.80
$93.50
$92.82
$95.60
2.78
3.00%
Feb Lean Hogs
$62.28
$61.70
$58.95
$63.85
4.90
8.31%
March Cotton
$43.34
$45.09
$46.18
$48.91
2.73
5.91%
March Oats
$2.13
$2.19
$2.31
$2.12
0.19
-8.23%
Jan Rice
$14.90
$14.89
$15.95
$15.30
0.65
-4.11%
 
 
 Cattle futures also played on the bull side, but almost the entire gain was on Friday. February futures were up $1.05 on Friday, closing in the lower part of the daily range. Cash cattle trade for the week was slow to develop, but some of the carcass based quotes in north were around $138, up $3 vs. the prior week. Wholesale prices didn’t do much for the week despite holiday shrunken slaughter.
 
Corn prices were fractionally higher for the week. They did manage to erase an ugly Monday by Friday’s close. Weekly export sales were again poor at less than 300 thousand metric tonnes. Ethanol futures have also refused to go up, keeping pressure on margins and fueling rumors of additional plant shut downs. The market blithely ignored those inputs and saw new buying come in on December 1 and January 2 that appears to be coming off of the sidelines in a bet that we will have an acreage war in 2008.
 
Soybean futures were up 18 cents for the week, with both meal and oil higher in support. It product exports driving the market, however, as soybean oil bookings were net negative for the week. Meal sales were also uninspiring. Dryness in about 20% of the Brazilian growing area is supporting the complex, as is China’s active buying of both US and South American soybean supplies.
 
Wheat futures were up at all three exchanges. Import tenders from the Middle East were geared toward high quality wheat, where the US is still a strong player. Weekly export sales for Christmas week were also stronger than expected, including an Iranian cargo. KC led the gains because of the export interest, and also because of some developing La Nina related dryness in the southern Plains and speculator ideas that it would continue. Chart action is positive in all three markets at the weekly chart level.
 
Cotton futures rose nearly 6% for the week. A stronger dollar didn’t seem to hold it back much. Loss of acreage in 2009 is a factor, and perhaps some bets that a firming stock market meant the worst was past in terms of the economy. USDA trimmed the LDP for the current week, due to higher average world prices. That means the futures have to rally again if they need to attract more cash cotton sales on a net price basis.
 
Market Watch:  This is the transition week between the year end holiday trade and the first major slug of USDA reports for 2009. Those will be released on January 12 (including Cotton Ginnings, Final Crop Production, Grain Stocks, Rice Stocks, Winter Wheat Acreage and WASDE). Asset allocation is already underway, with money parked in Treasuries coming out of that area in billion dollar chunks and being re-deployed into equities and commodities. Some of the major index funds have their annual allocation percentages scheduled to change this week. The Goldman Roll of existing GSCI February contract positions is also due to begin on Thursday.
 
There is a substantial risk of loss in futures & options trading. Past performance is not necessarily indicative of future results.
 
Copyright 2009 Brugler Marketing & Management LLC. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Call 402-697-3623 for information on Ag Market Professional or SRR subscriptions, or visit the web site @ www.bruglermktg.com.
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