Market Trade in Narrow Range Overnight
May 31, 2012
Good Morning! Paul Georgy with early morning comments for May 31, 2012 at 5:10 am. Corn and soybean futures are mixed in narrow range trading. Weekly ethanol production will be out on today and weekly grain exports sales will be out tomorrow morning. Traders want a confirmation that the rain moving across the Midwest will provide the moisture needed to hit trend yield before they become more aggressive sellers in new crop corn. If rains meet expectations it is likely to see more producers selling old crop corn next week. Even with China’s economic slowdown there are estimates which increase their purchases of soybeans this year. Stevedores strike in the Brazil port of Santos is threatening shipments out of that region. Month end today could suggest more margin pressure on old crop/new crop spreads. As we start June, the trade will be getting prepared for the June 12 monthly USDA supply and demand report and large funds rolling positions. The Greek parliamentary election polls are too close to call a winner. The Greek election is set for June 17. Cattle fundamentals are a little weak right now. Weekly beef production levels will likely not peak until sometime from mid-June to mid-August. Boxed beef was higher yesterday with choice up 1.26 and select up .89. Hog slaughter has come into line with last year which should help support prices. Pork cutout values were up 1.95 on Wednesday. Stay in touch with Allendale on twitter or subscribe to Allendale Research Center. Listening to the
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Markets as of 5:10 AM
Jly Corn +0
Jly Beans +1 3/4
Jly Wheat -4 1/4
Jun Cattle +.05
Jun Hogs +.55
Jun S&P +6.00
Jun Dlr -.21
Jun Crude +.36
June Gold +3.30
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Yesterday’s continued strength to new highs in the US Dollar has continued to add pressure across all commodities. A close below the 5/28 low of $81.90 is needed in order to negate the uptrend. Unless this level is violated, continued strength is expected
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Two separate groups now suggest a 39 million tonne production estimate is more appropriate for Argentine production. It will help the bullish cause for the short term but may not cause a real rally due to lowered Chinese interest right now…Rich Nelson
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.
