Grains and U.S. Dollar Higher
Feb 06, 2012
Good Morning! Paul Georgy with early morning comments for February 6, 2012 at 5:20 am. Grain markets are higher as traders prepare for USDA report on Thursday. Higher grain markets around the world after the strong close on Friday is also providing support. The EU debt situation should be dominating headlines today. The Greek debt deal is still being worked on. The troika has met on Sunday and has extended their meeting into Monday with more demands on the Greek government. Greece needs $171 billion by end of March or they will have to default. This week, the USDA will update us with the monthly supply and demand report due to be released on Thursday, February 9th. Trade will be focused on the corn ending stocks after the strong basis we saw last month. Rains fell over 85% of Argentina this weekend with more rain in the forecast this week. Cash cattle trade was steady to a dollar lower in the south, while the dressed trade was 2.00 to 4.00 lower than last week. Friday choice beef cutout values were .07 lower and select was .45 lower. Pork carcass values were up .15. Without the support of a winter storm crossing through the cattle feeding belt this week we expect cattle to start out steady to lower. Get all the details by subscribing to the Allendale Research Center. Call an Allendale Rep today to answer any question about the markets at 800-262-7538. If you are in the Carrington, ND areas on February 24, 2012 stop-in and see us (details to follow).
Markets as of 5:20AM
Corn +2 to +3 Live Cattle called steady lower US Dollar Index +47
Beans +6 to +9 Lean Hogs called steady lower Crude Oil -1.04
Wheat +3 to +5 S&P Index -5.25 Gold -20.60
Allendale Advanced Charts
Soybeans found strength on Friday as they headed toward the 38% retracement level of 12.46 1/2 . The January high was made in this area. A close above this area opens the door for a move to near 13.00.
Nelson Notes from the desk of Rich Nelson
The Department of Labor’s monthly update for job grown, non-farm payrolls, showed an increase of 243,000 for the month of January. That was much more than economists’ consensus of 150,000. This will push the dollar a little higher and exert a negative influence on commodities today.
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