Grain Futures Turn Red Overnight
Feb 22, 2012
Good Morning! Paul Georgy with early morning comments for February 22, 2012 at 5:15 am. Grain markets are quiet but lower following yesterday’s large trading ranges. With the USDA Outlook Forum only a few days away, spreading has been a market mover. It seems that traders are expecting a large corn number and a smaller soybean stocks number out of USDA meetings. We are hearing a lot of talk about a seasonal trade of being long beans and short corn. Greece will receive the 130 billion euros and avert a crisis. Many are concerned that the new elections in April could reverse some of the mandated cuts made to get the money. This problem will likely stick its head up again. The Iran situation is now taking center stage pushing crude oil prices higher. Tensions continue to mount between Israel and Iran. Weather in South America should be beneficial to the later season crops. Dryness in the Midwest will get more attention in upcoming weeks as many areas are a bit dry. The weekly export sales will be announced on Friday at 7:30. USDA will provide their outlook presentation to the press at 8:00 CST on Friday morning. The reduced production by packers finally is tightening beef supplies enough to strengthen cutout values. Choice was up2.34 and Select was up 2.77. Pork cutout values were down .39. Sign up today and reserve your free seat for our Allendale 2012 Road Series
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Markets as of 5:15 AM
Corn -2 to -3 Live Cattle +00 to -05 US Dollar Index +.18
Beans -5 to -6 Lean Hogs +02 to +07 Crude Oil -.43
Wheat -3 to -4 S&P Index -2.25 Gold -3.40
Allendale Advanced Charts
Corn tested the downtrend on Tuesday and closed near session lows. The consolidation we have seen for the last month would suggest a potential sharp move in the direction of breakout when it occurs.
Nelson Notes from the desk of Rich Nelson
The National Oilseed Processors Association reports January soybean crush at 142.813 million bushels. This was a little less than expectations of 144.5 million and may be considered a little disappointing. Though the year to date (Sep – Jan) marketing year total is down 4.9% versus last year we will point out January levels were only 1% smaller. Crush needs to run equal with last year from February to August to meet USDA expectations.
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