Grains Firm on Weather Concerns
Dec 20, 2011
Grains Firm on Weather Concerns
Good Morning! Paul Georgy with early morning comments for December 20, 2011 at 5:15 am. Corn and soybean futures slightly higher overnight as South American weather dominates holiday trade. The crops in Argentina have some chance of moisture stress for the next few days then some relief is expected. Then more stress for early next week. Lower temps will ease some of the crop damage in Argentina. Brazil is generally in good condition but has to be watched closely for any sign of change. Light volume and oversold conditions of grain markets seems to be having an impact on the rally this week. Trading volume in all markets is light as traders have reduced risk in commodities going into the holidays. The gridlock in Washington and the lack of action in Europe appears to be with us for a while longer. Livestock futures saw aggressive buying on Monday as a winter storm treks through the southern plains cattle feeding area. The wet heavy snow will reduce weight gain and tighten market-ready supplies even further for a few days. The lack of movement of cattle should help support beef prices. Monday choice beef was up .43 and select was up 1.17. The pork complex received support from short covering. Pork cutout was up .14 on Monday afternoon. Stay in touch with Allendale staff as we will be ready to talk about markets throughout the holiday season. Call us at 800-262-7358.
Markets as of 5:15AM
Corn: 1 to 2 higher Beans: 3 to 5 higher Wheat: 2 to 3 higher
Live Cattle: 20 to 30 lower Lean Hogs: 30 to 50 lower
Dollar: .35 lower Crude: 1.25 higher Gold: 10.30 higher
Allendale Advanced Charts
Corn bounced off the neckline on Monday and closed a penny above the key $6.00 level. This could give the bulls a reason to take the market up towards the most recent high of 6.16.
Nelson Notesfrom the desk of Rich Nelson
The farm minister of India estimated the current wheat crop, set for 2012 harvest, will be a new record. This sounds even more impressive when you consider the fact 2011’s harvest was a record itself at 85.93 million tonnes.
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