Grains Gain Back Losses In Early Trade
May 25, 2012
Good Morning! Paul Georgy with early morning comments for May 25, 2012 at 5:10 am. Corn and soybean futures are higher. Markets are likely to see some adjusting of positions ahead of the long weekend and potential changes in weather forecast by Monday evening at 7:00 pm (remember that is when the grains open after the weekend). World Weather Inc. says, "The bottom line still brings hot, dry, weather to a big part of the Midwest (excluding the northwest) from now into Monday. After that, two frontal systems and a possible third will bring waves of light rain across the Midwest during the balance of the two-week outlook offering relief to the driest conditions." Weather forecast will play a huge part in the price direction Monday evening. June grain options will expire today at 1:15 and electronic futures continue to trade until 2:00 pm, stay tuned. The trade is waiting for an announcement from CME of trading hour adjustments on the days when major USDA reports are released. Kansas wheat harvest is underway with yields expected to be above average. China’s largest banks will not meet loan targets for the first time in 7 years due to economy slowdown. The Commodity Index has consolidated near the early August 2010 highs after the slide in the index since March 1, 2012. The EU PMI composite index is showing Germany and France are being hit by economic slowdown. This is increasing the drama with Greece. The weak EU financial news is continuing to create fund liquidation and a risk-off attitude in commodity investments. Choice beef prices were up .19 and select was down .81 on Thursday. Futures have stabilized since early in the week announcement of large beef and pork in cold storage. Stay in touch with Allendale on twitter or subscribe to Allendale Research Center. Listening to the Allendale "Morning Coffee"
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Markets as of 5:10 AM
Jly Corn +9 1/2
Jly Beans +4 1/4
Jly Wheat +11 1/4
Jun Cattle +.25
Jun Hogs +.30
Jun S&P +3.25
Jun Dlr -.29
Jun Crude +.43
June Gold +6.20
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Thursday’s continued strength in the US Dollar is applying pressure across the commodity spectrum. While the steepness of the trend line is a slight cause for concern, a break below the trend line and a confirmed close below the 5/22 low of $81.09 would be needed to negate the uptrend.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The euro zone Purchasing Managers Index, a measure of economic activity at the wholesale level, fell to a reading of 45.9 this month. That is down sharply from 46.7 in April. Economists suggest this translates into a euro zone second quarter GDP falling by 0.5%.
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.