Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.
Dec 02, 2011
· Grain mixed to higher overnight; New crop ’12 contracts showing impressive strength relative to nearby yesterday; Price ratios currently favoring corn planting over soybean planting from a producer perspective
· China grain output rose 4.5% from last year to 571.21mmt, beating analyst expectations
· Russian winter grain crop in very good condition, some analysts see production near 100mmt, which would be the largest since 2008
· Some traders believe shortages of seed corn could be an issue as farmers plan their acreage allocation for next year; Production shortfall in many areas of the US is to blame
· Technical Numbers
o Corn (H) Sup 595, 588 Res 610, 619
o Soybeans (F) Sup 1115, 1101 Res 1142, 1157
o Wheat (H) Sup 605, 596 Res 624, 634
· USDA Weekly Egg Sets and Broiler placements were down 6% and 5% respectively, from a year ago; Some believe drop in broiler numbers having major impact on corn feed demand
The grain markets have not seen any major “beginning of the month” buying. The markets seem to have found some footing near current levels, but remain well-offered on rallies. As is normal for this time of year, news on which to trade is light. The EU Debt crisis remains the largest macro-economic factor. The USDA will release its December Crop Production report on the 9th. Don’t expect any major moves until then.
Straits Financial provides futures/options brokerage to farms, feedlots, elevators and processors. Call Joe Vaclavik today at (312) 462-4438.