Strong Performance by Grains Overnight
Mar 15, 2012
Good Morning! Paul Georgy with early morning comments for March 15, 2012 at 5:20 am. Grain futures are higher this morning ahead of the weekly USDA sales figures. Spreaders are buying beans as they focus on China shopping for soybeans from US because of short crops in Brazil and Argentina. NOPA crush data was supportive as the soybean crush was larger than expected. Soyoil stocks were a surprise as they were 120 mil lbs. above estimates. Another private analyst lowered the Brazilian soy crop to near 67 mmt. Weekly export sales will be released this morning at 7:30. Trade estimates are: corn 500 to 900 tmt, soybeans 700 to 1,200 tmt, meal 75 to 145 tmt, soyoil 5 to 25 tmt and wheat 400 to 800 tmt. Traders will have a watchful eye on the newswire at 8:00 am for any new sales of corn or beans to China. Allendale will release the results of the 23rd
Annual Planting Survey tomorrow morning at 7:30. Cash cattle sales were at a standoff yesterday while beef product was sharply lower again. Choice was down 1.26 and select was down 1.75 which will add to the negative packer margins. Futures are hoping for a steady cash trade this week. Pork cutout values down .60 are being pressured by too much competitive meat available to the marketplace. Futures have been finding support early in session and selling off late. We will have to watch for cash sales to give us direction. Check with Allendale Research Center for more details on the markets www.allendale-inc.com
Markets as of 5:20 AM
May Corn +5 Apr Cattle +.45 Jun $ Index -.09
May Beans +11 Apr Hogs +.40 April Crude -.04
May Wheat +2 Jun S&P +1.25 June Gold +1.40
Allendale Advanced Charts
The dollar index continues to find strength and penetrated the 62% retracement level on Wednesday. A close above 80.55 is needed to signal a potential move to January highs.
Nelson Notes from the desk of Rich Nelson
As of Tuesday afternoon, the labor strike at Argentina’s Rosario port has idled 85 cargo ships. Workers are demanding an eight hour workday and for a fourth crew member to be assigned to each team in charge of mooring vessels. Currently workers work a 12 hour day in three man teams. Argentina is the world’s #2 exporter of corn and #1 exporter of both soymeal and soyoil.
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.