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The Allendale Wake-Up Call

RSS By: Paul Georgy,

Paul Georgy serves as president/CEO of Allendale, Inc., a worldwide agricultural advisory and research firm that provides agricultural commodity price research and risk management alternatives for producers, major food companies, international corporations, foreign governments, and major news vendors.

Headlines Will Lead Markets

Dec 05, 2011

Good Morning! Paul Georgy with early morning comments for December 5, 2011 at 5:20 am. Grain Markets are in narrow trading ranges overnight. Stock indexes suggest a higher opening for New York markets. World Stock markets are higher this morning. All 27 Euro Leaders meet on Friday but there will be many meetings between leaders this week as they set the stage. Merkel and Sarkozy will talk in Paris on Monday to prepare new political and economic ties for the Eurozone. Italy’s Chamber of Deputies approved a $40 billion package for restructuring and now Monti has to convince parliament. Headline traders will have plenty to work with again this week. South American dryness concerns should be dampened this week as most of Brazil will receive moisture. Any demand news will be supportive to corn and beans as traders wait for those daily USDA sales announced at 8:00 am CST. Corn prices in the US are still expensive when compared to SA corn and wheat. CFTC Commitment of Traders released Friday showed large traders reducing the long positions in corn and buying back some of short positions in wheat. Beef prices have went into a tailspin on Friday as Choice declined 2.25 and Select was down 1.39. Fed cattle should be supported by the winter storm in the Colorado and Kansas area this week. Hog Futures rally may have run its course as Fridays close was below recent up trend line and below key moving averages. If you are going to be in the Albert Lea MN area on Wednesday come join us at the Farmers State Bank 2011 Agriculture Seminar Details can be found at Call with your reservation at 507-863-2371.
Markets as of 5:20AM
Corn:   2 to 3 higher               Beans: 6 to 9 higher             Wheat: 1 to 3 lower
Live Cattle: Called steady to lower                          Lean Hogs: Called steady to lower
Dollar: .13 lower                    Crude: .50 higher                   Gold: 8.00 lower

Allendale Advanced Charts
The uptrend remain in tact in January crude. It appears headed toward last months highs on 103.37. A close above that level could open the door for another round of buying. See trade recommendation in Allendale Advance Charts.

Nelson Notes from the desk of Rich Nelson

The National Bureau of Statistics reports China’s grain production this year totaled 571.21 million tonnes. This is a large 4.5% over last year and represents a clear record high. Of that, corn production was upped to 191.75 million tonnes. That is a large increase over USDA’s 184.5 mmt estimate (285 million bushels)!

Contact Allendale: 800-262-7538
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.

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