Energies and Grains Lower as the Dollar Strengthens
Mar 02, 2012
Good Morning! Steve Georgy with early morning comments for March 2, 2012 at 5:15 am. Grain futures are lower as the dollar finds strength to finish out the week. News is light this morning but the energies and the dollar will need to be watched close. If the dollar can push above 79.50, the charts will have taken out the downtrend it has been forming since the first of the year. The funds have been increasing their positions in commodities due to inflationary concerns and the falling dollar. If the dollar continues its path higher, we may start to see money come off the table and funds reduce positions. Crude jumped above $110 a barrel yesterday after the pit sessions were closed. This excitement was caused by a story of a pipeline explosion in Saudi Arabia. This news was released by an Iranian media source. This morning Saudi Arabian officials are denying this explosion even happened. This story will need to be watch closely because it shows how fast money is ready to move if geopolitical tensions continue to build. Cattle are working slightly higher this morning after a nice rebound yesterday. With the strong dollar we could see profit taking now that we are near resistance again. Box beef had Choice down .35 with Select unchanged. Trades this week is steady with last week at $128. Hogs are slightly higher as well. Cash hogs have been flat to .75 lower per hundredweight this week. Weak wholesales pork prices and negative processing margins caused most packers to bid cautiously for additional loads. Allendale needs your help on our 23rd annual planting survey. Go to www.allendale-inc.com and fill in your data.
Markets as of 5:15 AM
Corn -2 to -3 Live Cattle +05 to +10 US Dollar Index +.35
Beans -2 to -3 Lean Hogs +15 to +30 Crude Oil -75
Wheat -3 to -4 S&P Index -3.00 Gold -5.10
Allendale Advanced Charts
Beans broke the 5-day trend of posting a new high for the move today as the market failed to trade above yesterday’s high. However, the market closed up near session highs , so we won’t count the bulls out just yet.
Nelson Notes from the desk of Rich Nelson
The last two weeks of soybean sales have shown a dramatic improvement. Old crop sales last week, at 20 million bushels, were the largest sale for this week in five years.
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