Grains Rebound On Election Day Morning
Nov 06, 2012
Good Morning! Paul Georgy with early morning comments for November 6, 2012 at 5:00 am. Grains are higher as prices rebound from Monday’s selloff. Traders are still concerned about South American weather and the potential size of their crop. Northern Brazil received rain over the weekend and more is in the forecast for early next week. Argentina is dry until late this week. Celeres a local crop analyst out of Brazil is projecting a 79.02 mmt which would be a record for the 2012/13 crop year. CONAB is due out with production numbers on Thursday that will be watched closely by the trade. USDA says corn harvest is 95% complete and soybean harvest is 93% done. Winter wheat conditions fell by 1% to 39% in the good/excellent category which is a record low for a crop just getting started. Traders are preparing for the Supply and Demand report on Friday morning. Out of the last 6 years when corn production was down in October there were further declines in November. Soybean production has a history of increasing in the November report as traders are looking for a 32 million bushel improvement. The spread between choice and select beef is widening. The reduced demand at white table cloth restaurants on the east coast caused by Super Storm Sandy is pressuring choice beef. While the high feed costs are causing cattle to be moved a little sooner than normal. Pork cutout values were up .93 on Friday. Stay in touch with all the facts by subscribing to the Allendale Advisory Report. Exercise you obligation to VOTE today!
Markets as of 5:00 AM
Dec Corn +3 1/2
Jan Beans +14
Dec Wheat +7
Dec Cattle -.02
Dec Hogs +.02
Dec Dlr -.06
Dec S+P +4.50
Dec Crude +.45
Dec Gold +7.50
Allendale Advanced Charts
Due to yesterday’s short term momentum failure, we can now technically say that the uptrend has ended. We are looking for a close below $76.55 to call a peak and reversal that will ultimately lead to downtrend and what could be considerable losses…Frank La Placa
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Weekend rains totaled as much as 1 inch for areas in Argentina outside the main growing region. Southern Brazil was dry. The next chance of rain for Argentina and Southern Brazil is from Thursday through Saturday. Rains of 0.50 to 1.00 inch will fall in Argentina then move into Southern Brazil and total 0.20 to 0.60 inch. The real excitement with weather right now is Central/Northern Brazil
This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale Inc.’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.