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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.

Quiet Grains Trade Overnight

Dec 13, 2012


Good Morning! Paul Georgy with early morning comments for December 13, 2012 at 5:10 am. Grain futures are quiet as traders wait for new news. The Fed Committee announced that "Operation Twist" would end on Dec 31, 2012. Starting in January, the Fed will buy $45 billion of Government Securities. The Fed pledged to keep interest rates low until unemployment falls below 6.5%. This news pressured the dollar and encouraged buying in the grains. Demand has been the key driver for grains in recent days. Ethanol production for last week was below previous week and 12% below last year. Traders are waiting to have USDA announce new corn sales as futures prices fell to the level where world buying was last seen. South Korea passed on US corn yesterday and purchased 238,000 tonnes from South America and South Africa. Gulf corn basis was down 3 cents on Wednesday. This morning’s weekly export sales estimates are: corn 100 to 300 tmt, soybeans 600 to 800 tmt, meal 200 to 350 tmt, bean oil 15 to 40 tmt and wheat 350 to 550 tmt. Mississippi River levels are being watched closely as Dec 28 is now the day water level could drop below critical stage. NOPA crush estimate for tomorrow morning is 145 to 150. December contracts of corn, wheat and lean hogs go off the board on Friday. It was the lean hog futures turn for buying as funds and technicals push markets higher. Cash news was weak but the Fed stimulus was viewed as inflationary to commodities. Cash cattle are still at a standstill with bids at 121 while asking 126 to 127. There were 47 more deliveries and 25 retendered for the second time which means paying 3.00 cwt for retendering. Boxed beef was mixed with choice down .39 and select was up .67. Pork cutout values were down .83.
Markets as of 5:10 AM
Mar Corn    -1 1/4
Jan Beans   + 1/4
Mar Wheat   +2 1/2
Feb Cattle +.22
Feb Hogs    -.02
Mar Dlr     +.12
Mar S&P     -1.50
Jan Crude   -.41
Feb Gold    -21.20
Contact Allendale: 800-262-7538
This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale Inc.’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.


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