Grain Markets Waiting for Some Demand
Dec 21, 2011
Grain Markets Waiting For Some Demand
Good Morning! Paul Georgy with early morning comments for December 21, 2011 at 5:10 am. Grain markets traded in a narrow range overnight. It is hard to find news that directly relates to grains. For those focused in on the weather in South America, Argentine forecasts have put a little more moisture in for the crop region. Brazil should see some rain over the next few days. The outside markets are filled with uncertainty. The inability to pass the payroll bill in Washington has supported the euro and pressed the dollar. It is likely this issue will not be solved until the deadline next week. The bonds auction in Spain and long-term repo operations by the European Central Bank is providing hopium for the Eurozone investors. Unrest in Kazakhstan is providing extra fuel for bulls in the crude oil market. Technical resistance in March corn crosses at 6.10 and 6.16. January Beans struggle to break through the 11.50 area. The snow storm in the southern plains is not as bad as forecast which is causing a setback in cattle futures. Cash trade is being influenced by poor weather conditions for moving cattle and moving product. Next week is a short week and packers will not need as many cattle. Product demand is still very sluggish although choice was .99 higher and select was up .84 on Tuesday. Pork cutout dropped 2.90 as packers try to clean up inventory. Our staff will be happy to answer any questions; you can reach us at 800-262-7538. The Allendale’s Leaders Conference promise to be a meeting you should not miss. Sign up today at www.allendale-inc.com. For subscribers don’t forget to look at the Christmas Price study for corn and beans, VERY INTERESTING!
Markets as of 5:10AM
Corn: 1 to 2 lower Beans: 1 higher to 1 lower Wheat:2 to 3 lower
Live Cattle: 20 to 30 lower Lean Hogs: 30 to 50 lower
Dollar: .15 lower Crude:.25 higher Gold: 9.20 higher
Allendale Advanced Charts
Spring wheat saw plenty of follow-through strength today that brought it near the 40 and 50 day moving averages. The long-term downtrend line remains in place and could stop the bulls if the moving averages are taken out. It might be wise to have sell orders near this trendline. See trade recommendations.
Nelson Notesfrom the desk of Rich Nelson
A study by the Mortgage Bankers Association found that 80% of prospective home buyers believe now is a good time to buy. The problem is sellers. As a group they are still resistant to lowering prices to true market value. Allendale’s look at the National Home Price Index finds prices were 2% lower than last year in September. Some would suggest a bottom, or at least some stability, is being seen.
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