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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.

Markets Consolidate Overnight

Apr 11, 2012

Good Morning! Paul Georgy with early morning comments for April 11, 2012 at 5:00 am. Grain futures are mixed as markets consolidate after Tuesday’s volatile session. The USDA gave us something for the bears and bulls by cutting the production of soybeans in South American and reducing soy ending stocks in the US. The corn ending stocks of unchanged was a surprise as most were looking for at least an 80 million bushel reduction. The USDA’s reason was usage for the second half of year would be down and the early plantings would suggest an early harvest thus filling late year needs. Traders have turned their focus to the Eurozone again. Money traders are concerned about the recent rise in interest rates in Spain and Italy. Funds have built a record long position in beans and may want to take some profits. Weather is ideal for planting with some rain in the forecast for the weekend across the Corn Belt. Frost and cold temp are expected stay to the North over the next few nights. Weather will be watched closely for any changes in forecast and the "too" weather will stick its head up soon (too dry, too wet, too cold or too hot). Stay close to Allendale Research. Lower macro markets on Tuesday are weighing on livestock futures. Demand continues to be the major problem when trying to find a bottom in cattle prices. Boxed beef cutout values were weak with choice down .53 at 178.08, and select was .47 higher at 177.35. Pork carcass cutout value was down .52 at 77.89. Cash hogs were sharply lower in the country yesterday as pork is trying to compete with beef and chicken at the retail counter. Keep in touch with Allendale Research Center by subscribing today.
Markets as of 5:00 AM
May Corn    +4
May Beans   -1
May Wheat   +4
Apr Cattle -.35
Apr Hogs    -.60
Jun S&P     +11.75
Jun $ Ind   -.37
May Crude   +.69
June Gold   -1.50
Allendale Advanced Charts
June cattle took out its recent lows of 114.40 and have been in a sharp downtrend the past month and a half. We have support that comes in at 112.60.

Nelson Notes from the desk of Rich Nelson
Due to the smaller than expected March 30 quarterly Grain Stocks report, the grain trade expected USDA to lower ending stocks from 801 million bushels down to 721. They were looking for an increase in feed use. USDA chose to keep ending stocks unchanged.  
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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