Economic Data Provides Reason for Profit Taking
May 03, 2012
Good Morning! Paul Georgy with early morning comments for May 3, 2012 at 5:10 am. Corn and soybeans futures are mixed. Traders are dealing with weak HSBC PMI data out of China and negative Eurozone economic news. CME announced margin requirements changes for members which take effect on Monday, May 7. This could cause liquidation as member traders will have to adjust positions or meet the increases in margin ahead of the deadline. Weather forecast has not changed much from yesterday for the US. The dry areas in Ukraine and Russia should get some rain next week. Weekly export sales should be large for corn and beans. Reuters newswire trade estimates are: Wheat 600-850 tmt, Corn 3-4 mmt, Soybeans 1-1.5 mmt, Soymeal 200-400 tmt, Soyoil 5-15 tmt. We will be watching the 8:00 hour for new sales announcements to China. We were hearing feedlots were passing on offers at 120 yesterday. A few hundred head did trade in Kansas at 120 on Wednesday. It is assumed hedged cattle are being delivered to packers because of strong basis. Boxed beef was mixed yesterday. Choice was up .71 and select was down .03. Pork cutout values were up .69 and packers are cautious buyer when they see futures sliding. Sign up today for the Allendale Research Center on line or call 800-262-7538.
Markets as of 5:10AM
Jly Corn +1 3/4
Jly Beans -2 1/4
Jly Wheat +6
Jun Cattle -.52
Jun Hogs +.30
Jun S&P +1.75
Jun Dlr +.13
May Crude -.43
June Gold -7.90
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
The hog market continues its downtrend after breaking the Tuesday low of $85.67. A push toward the 12/16/11 low of $82.63 looks to be in the cards. The downtrend is valid in the hog market until a recovery above the 4/26/12 high of $88.25
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
With Day 1 of the Kansas Wheat Tour complete, organizers suggest there is potential for record yields this year. Combined yield estimates point to a Day 1 total of 53.6 bushels per acre. That far exceeds last year's Day 1 estimate of 40.0 and even the record in 2005 of 48.9. Analysts estimate the total Kansas yield at 45.0.
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.