Market Searches for New Fundamental Support
Feb 25, 2013
Good Morning! Paul Georgy with early morning comments for February 25, 2013 at 5:05 am. Grains are higher as they try to recover from last week’s sell-off. Old crop #corn closed only a few cents away from major technical support at 6.78 ½. November #soybeans are testing their support at 12.55. Nearby soybeans had a large outside day down after setting new highs for the move. As we start this week with a rather negative technical picture, we are not getting much help from South American weather. Argentina should have received rain over about 50% of the area this weekend and another system due in Thursday with greater coverage. Rumors on Friday had some South American beans being sold in the US. The export sales report on Friday was disappointing as soybeans sales were net cancellation. The CFTC report of Commitment of Traders showed managed funds reducing long positions by 61,060 and soybeans by 7,215. This data is reported as of Tuesday’s close. Brazilian port workers call off the 6 hour strike set for Tuesday after discussion with government officials. Thursday is first notice day for March grain contracts. Allendale’s Annual Planted Acreage starts this week. Your help is very important. Cattle on Feed report was a little on the negative side but the trade right now has a problem with US consumer demand, exports, and is also concerned about upcoming problems with meat inspections. Boxed beef was mixed, with choice up .54 and select down .01. Hog traders are concerned we could see no real progress on some type of verification agreement on Paylean for China and possible meat plant closures due to this budget issue. Pork cutout value was down .21 on Friday. Livestock futures are called steady lower this morning. We are preparing for the Allendale Road Series 2013 meetings that will be held in Riverside IA this Thursday and Friday sponsored by AgriGold. You can reserve your seat and find all the details at www.allendale-inc.com.
Markets as of 5:05 AM
- Mar Corn +2 1/2
- Mar Beans +6 1/2
- Mar Wheat -1
- Apr Cattle Stdy-Lwr
- Apr Hogs Stdy-Lwr
- Mar Dlr -.25
- Mar S&P +6.25
- Apr Crude +1.04
- Apr Gold +20.00
Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com
