Narrow Ranges in Grains Overnight
Nov 29, 2011
Good Morning! Paul Georgy with early morning comments for Nov. 29, 2011, at 5:20 am. Grain markets were relatively quiet overnight. The euro is stronger as EU leaders arrive in Brussels for another meeting. The eurozone problem does not want to go to sleep. Talk of a breakup of the eurozone or the possibility of Germany pulling out sounds like a political bluff. Yesterday the talk was that a solution was in the making. European leaders were in Washington meeting with President Obama. Today back to Brussels to work out the reform and the distribution of the European Financial Stability Facility’s 420 billion euros. One thing is for certain, tensions are increasing and large specs are decreasing position size as reported by the CFTC Commitment of Traders report.
Weekly export shipments were in line with trade expectations. Celeres' weekly export data showed Brazil has sold 38% of the 2011/12 bean crop compared to 36% last year. Agroconsult has estimated the 2011/12 bean crop at 74.8 mmt, which is an increase of 1 mmt from its last estimate. Deliveries for the December contract start tomorrow, with no corn deliveries expected. Cattle futures struggle to close higher on Monday while product slides again. Choice beef was down 0.30 and select down 0.09. Pork cutout was up 0.70 on Monday. Lean hog futures retraced all of last week’s gain in one session.
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Markets as of 5:20AM
Corn: 3 to 4 higher Beans: 6 to 8 higher Wheat: 4 to 6 higher
Live Cattle: 10 to 20 lower Lean Hogs: 10 to 25 higher
Dollar: .59 lower Crude: .80 higher Gold: 4.60 higher
Allendale Advanced Charts
KC wheat held above last Friday’s low on Monday, but closed near session lows. We have not seen prices this low since July 2010. The next area of support is down at 6.24. See trade recommendation in Allendale Advance Charts, page 9.
Nelson Notes from the desk of Rich Nelson
The Commerce Ministry forecasts soybean imports in November will total 5.63 million tonnes. This would be a good increase over October’s 3.81 million tonnes.
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