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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.

Euro Debt Crisis Takes Spotlight Again

Apr 23, 2012

Good Morning! Paul Georgy with early morning comments for April 23, 2012 at 5:00 am. Corn and soybeans futures are lower on profit taking and stronger Dollar. The Netherlands has been unable to agree on a budget which is driving up Euro countries debt costs. Last week ended with rumors circulating that Brazil was going to halt shipments of soybeans due to their low production. Brazilian government made a statement over the weekend that they have no plans to halt or slow exports of soybeans. There was more talk last week that as many as ten cargos of beans were sold to China out of the US. The daily export report at 8:00 will be very important as we wait for some confirmation on soybean and corn sales. Spain and Argentina’s will continue to battle over the subsidiary of the Repsol (Spain’s largest energy company). Moisture has moved out of the Midwest for a few days which should allow for some aggressive planting progress. We are hearing estimates of 35 to 40% of US corn crop planted. That number seems a little high to us. There still is some frost in the forecast but it is mostly WI, and MI. It should not be a problem for corn that is already out of the ground. Cattle on feed report Friday should be a little negative for cattle futures as all numbers were less than trade was expecting. However the cold storage numbers showed a larger than expected buildup of beef. Hog futures are struggling with the talk of slow demand from China. Boxed beef on Friday was mixed with choice up .93 and select down .32. Pork cutout was up .63. Stay tune to Allendale Research by checking at
Markets as of 5:00AM
May Corn    - 3/4
May Beans   -4 1/4
May Wheat   -1 1/4
Apr Cattle Stdy-Lwr
Jun Hogs    Stdy-Lwr
Jun S&P     -13.75
Jun Dlr     +.21
May Crude   -.83
June Gold   -9.00
Allendale Advanced Charts
Soybeans rallied sharply on the close on Friday and poked above resistance at 14.54. A close above this level would project a move to 14.70 level.

Nelson Notes from the desk of Rich Nelson
Traders continue to suggest China is actively buying US corn. This morning the rumor is that they purchased 500,000 to 1 million tonnes of US old crop corn. If true, that could be confirmed in the coming days by USDA’s morning update. There was no confirmation this morning.
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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