Corn Traders Wait for More Sales Data
Mar 14, 2012
Good Morning! Paul Georgy with early morning comments for March 14, 2012 at 5:10 am. Grain futures are mixed this morning as soybeans continue to show strength. Money flow continues to impact commodity prices. Grain futures have been taking turns on leadership. Soybeans continue their trek higher on South American production estimates and port problems in Argentina. It will be some time before we get the final harvest numbers. Reuter’s news wire was reporting 85 ships waiting to be loaded in the main Argentina port of Rosario. This delay is caused by a port workers strike which talks have broken off and next meeting scheduled for March 26. Traders will be watching for any more sales announcements by USDA at 8:00 am. The Quarterly stock report on March 30 is providing buying enthusiasm as many are expecting a large reduction in corn stocks. Allendale will release our planting survey results on Friday morning at 7:30 am. Today is last trading day for March grain futures contracts. Cattle futures rebound on positive economic news. Cash markets are at a standstill early this week but product continues to slide. Choice beef was down .98 and select was down 1.35 on Tuesday. Packers will likely hold out until late in the week to buy their needs. Steer and heifer weights are running well above normal as we are seeing the effect of a mild winter. Pork cutout values are slightly higher as exports continue to support prices. Sign up for Allendale Research Center
Markets as of 5:10 AM
May Corn -4 Apr Cattle +.00 Jun $ Index +.09
May Beans +2 Apr Hogs -.07 April Crude -.34
May Wheat -5 Jun S&P +.75 June Gold -33.10
Allendale Advanced Charts
April feeder cattle have held the uptrend line. Resistance is just overhead at 158.45, but must clear the 40 day moving average first. Contract highs of 162.05 should be retested if we break through first level of resistance.
Nelson Notes from the desk of Rich Nelson
The US grain trade expects Tuesday morning’s sale of 240,000 tonnes of corn to "unknown" to be the Chinese purchases that have been discussed. This was a little better than the two to three cargoes the trade has been expecting (120,000-180,000).
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.