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The Allendale Wake-Up Call

RSS By: Paul Georgy,

Paul Georgy serves as president/CEO of Allendale, Inc., a worldwide agricultural advisory and research firm that provides agricultural commodity price research and risk management alternatives for producers, major food companies, international corporations, foreign governments, and major news vendors.

Can Corn Close Higher 9 Days In A Row?

Dec 29, 2011

Can Corn Close Higher 9 Days In A Row?
Good Morning! Paul Georgy with early morning comments for December 29, 2011 at 5:20 am. Grain markets are seeing some profit-taking after 8 straight higher closes in corn. The export sales report will be released on Friday due to holiday on Monday. The index funds released their rebalancing needs which will be done between Jan 3 and Jan 15. They need to sell 21,650 contracts of corn and buy 21,948 of Chicago wheat. They also will need to buy 13,220 contracts of bean oil and sell 7160 contract of live cattle to name a few. Be aware that open interest in corn has declined during the rally this week. The auction of Italian 10 year bonds has been the talk of concern in EU for some time. The results of short term paper were supportive yesterday. Today auction of the 10 years settled at 6.98 just below the key 7% level. The USDA Monthly Supply and Demand to be released on Jan 12 will be the focus of talk after the New Year holiday. Cash cattle trade is in a standoff with feedlots wanting steady to higher prices but packers see no incentive to concede. Larger show list and short slaughter week have packers waiting until late Friday to make purchases. The first week in January will be a short week as well. Cutout values choice up 1.23 and select up 1.52. Packer margins are finally getting close to breakeven. Pork packers are full for this week and have adequate numbers for next week. Hog traders are waiting to see a pickup in demand or fund buying to continue chart uptrend. The Holiday Inn in Crystal Lake, IL advised us today that room are filling up and will hold our block until January 7th. Make your reservation now for the Allendale Ag Leaders Conference Jan 20 and 21.
Markets as of 5:20 AM
Corn: 0 to 1 higher               Beans: 4 to 6 lower               Wheat:2 to 3 lower
Live Cattle: 10 to 20 higher                         Lean Hogs: 30 to 40 lower
Dollar: .24 higher                  Crude: .27 higher                  Gold: 31.30 lower
Allendale Advanced Charts
The dollar index has bounced off the uptrend support line and 20 day moving average. The market has also pushed through the 10 day average during Wednesday’s session. Major resistance crosses at the 81.50 level.

Nelson Notesfrom the desk of Rich Nelson
Iran’s head of the navy indicated closing the strategic Strait of Hormuz would be "easy". This is the second warning in the same number of days. This threat comes as the US and EU considers sanctions on the oil industry.
Contact Allendale: 800-262-7538
There is a significant risk of loss when trading futures and options contracts. This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named, and each investor should consider the appropriateness of trading on this information, based on their objectives. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. Past performance is not indicative of future results.

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