Grains Sharply Higher on No Rain
Jun 25, 2012
Good Morning! Paul Georgy with early morning comments for June 25, 2012 at 5:10 am. Corn and soybean futures are sharply higher. The rain that was forecast for the Midwest over the weekend was less than expected. The next 10 days are mostly dry with a slight chance for the cornbelt this Friday and Saturday. Temperatures are expected to have highs near 100 by mid-week. This week is loaded with potential excitement other than weather. The EU ministers are having another summit to deal with their financial problems. Traders will be watching for the Supreme Court’s decision on Obamacare. We will end the week with what may be the biggest report of the year, Planted Acreage and Quarterly Stocks. Managed money increased long positions by 27,691 contracts in corn and 4,598 in soybeans. It seems as though they have plenty of buying potential left. Traders are expecting corn and soybeans conditions to decline by 2 to 3% in this afternoon’s crop conditions report. Cash corn basis is under pressure as South American corn is currently lower priced. Soybean basis is firm as there is more talk of Brazil running out of exportable beans. The Cattle on Feed report released on Friday was considered a little negative to price. The trade was looking for a 13% increase in feedlot placements during May and USDA counted 15.3% more. Marketing’s were less than expected therefore putting total On Feed numbers a little higher than the trade was thinking. Cash cattle traded down 2 to 3 dollars for the week on Friday. Boxed beef was lower with choice down .58 and select up .13. Hog markets remain strong due to tight market ready supplies. Pork cutout value was up 2.35 on Friday. Cattle futures are expected to open lower due to reaction to COF report while lean futures should be supported. Don’t miss the Allendale Ag Leaders Webinar
scheduled for June 26, tomorrow evening. Get all the details at www.Allendale-inc.com
Markets as of 5:10 AM
Jly Corn +19 1/2
Jly Beans +35 1/2
Jly Wheat +21 1/4
Aug Cattle Lower
Jly Hogs stdy-hgr
Sep S&P -10.75
Sep Dlr +.31
Jly Crude -.81
Aug Gold +.02
Allendale Advanced Charts
Friday’s trade has left the market confused going in to next week. We see a set up of three higher closes that met sellers which implies a loss of momentum at higher prices plus an outside range day that also implies loss of momentum at these levels. However until we see a close below the 6/19 low of $5.36 ¼ we should see sideways to higher trading range.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Moody’s rating agency downgraded 15 international banks yesterday. The downgraded firms included Morgan Stanley, Bank of America, Citigroup, and Royal Bank of Scotland. In the previous two days some suggest outside money was liquidating positions ahead of this announcement.
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.