China Raises Gasoline Prices
Mar 21, 2012
Good Morning! Paul Georgy with early morning comments for March 21, 2012 at 5:10 am. Grain futures are mixed this morning. The Chinese economic news adds concern to the commodity markets. China announced yesterday they were going to raise gasoline prices by 6 to 7% which is the largest such increase in over 3 years. This news has traders around the world expecting a larger slowdown of their economy which in turn means less demand for commodities. Funds have become sellers this week as many traders are getting positioned for one of the biggest USDA reports of the year, the March 30
th Quarterly Stocks and Prospective Plantings. You may want to look at your own marketing plan and decide if you should protect the price on more bushels? There are many ways to use options in your strategy to protect the downside and leave the opportunity for higher returns. Call your Allendale representative today. Live cattle and hog futures closed below recent support on Tuesday. Watch for support in April cattle at 124.15 and support in April lean hogs now crosses at the May 2011 low of 83.27. Cash market interest is very limited. Product gave back some of Monday’s gains. However, the reduced packer production should support beef prices later this week. Choice was down .65 and select down .04. Pork cutout values were down 1.58. We are running a Spring Planting Special for the Allendale Research Center; 6 months for only $99.00
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Markets as of 5:10 AM
May Corn -2 Apr Cattle +.07 Jun $ Index -.12
May Beans +1 3/4 Apr Hogs -.30 April Crude +.52
May Wheat - 3/4 Jun S&P +3.50 June Gold +7.40
Allendale Advanced Charts
April cattle closed below last week’s low after taking out the 62% retracement level. The next major support crosses at 124.15 which is near the January low. This market is very oversold but dominated by fund selling.
Nelson Notes from the desk of Rich Nelson
University of Illinois agronomist, Emerson Nafziger, notes "Planting in late March or early April has almost never produced higher yields than planting in late April". Though we have not had a nationwide 50% complete number before April 25, Allendale would suspect that feat would imply better than trend yields.
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.
