Soybeans Lead Markets Higher
Feb 28, 2012
Good Morning! Paul Georgy with early morning comments for February 28, 2012 at 5:15 am. Grain markets are higher lead by the soy complex. The soybean market continues to be the favorite commodity to be long. This prompted by the spin on news out of South America. Lowering of the Brazilian soybean crop by another organization in Brazil to 68 mmt has traders convinced US exports will outpace USDA projections. Combine the delay of up to 23 days in shipments out of SA, world buyers are coming to US. Corn and wheat found buying interest due to strength in beans. Macro markets are concerned about the EU ability to fund all of the debt after the G20 advised more cuts are needed there. Spreads between corn and soybeans values have narrowed enough to have producers talking about planting beans again. Go to
www.allendale-inc.com and participate in the Planting Survey, we appreciate your help. Cash cattle traded at steady prices late last week. The slowdown in packer’s production is supporting cutout values. Choice beef sets another new all-time high at 198.56 up 1.14, select added another .59. Futures will be the key to cash markets this week. Pork cutout values were down .13 on Monday. There is still space at the meeting in Riverside IA on March 6, reserve your seat by clicking
here.
Markets as of 5:15 AM
Corn +1 to +2 Live Cattle +05 to +20 US Dollar Index -.17
Beans +4 to +5 Lean Hogs -10 to -30 Crude Oil -.21
Wheat +3 to +5 S&P Index +4.75 Gold +2.20
Allendale Advanced Charts
Crude oil finally had a setback after a $14.00 run. It still remains overbought with an RSI value near 80. First level of support crosses near 104.00.
Nelson Notes from the desk of Rich Nelson
Brazil: Analysis firm, Agroconsult, lowered its view of Brazilian soybean production from 71.0 to 69.9 million tonnes. USDA’s latest forecast was 72.0.
Brazil: Analysis firm, Agrural, lowered its view of Brazilian soybean production from 70.2 to 68.0 million tonnes. USDA’s latest forecast was 72.0.
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