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The Allendale Wake-Up Call

RSS By: Paul Georgy, AgWeb.com

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.

Technicals Indicate Oversold Conditions in Grains

Jan 09, 2013

Good Morning! Paul Georgy with early morning comments for January 9, 2013 at 5:10 am. Grain futures are mixed in light volume trade overnight. Traders are focused on 3 factors going into the USDA report on Friday at 11:00 am CST. The re-balancing by index funds, weather in South America and technical support and resistance is getting traders' attention as they adjust positions ahead of report. The grain markets were very active on the close yesterday and it is anticipated they will be the same today. South American weather is favorable to crop production however some models have more rain moving into Brazil which could slowdown harvest progress. This could provide incentive for China to buy beans from the  US. CONAB should give us an update on production estimates later today. Yesterday’s sell-off from intraday highs has traders wondering if the downtrend is still intact. Watch the 6.75 area in March corn and the 13.55 area in the March soybeans. A close below these levels would likely activate more selling. Grain futures are still showing oversold which could be enough of a reason for a further recovery before Friday’s report. South Korea bought corn, wheat and soymeal from what appears to be South American origin. A few cash cattle traded at 128 in the south and 2.05 dressed in the north on Tuesday. Cutout values were higher on Tuesday. Choice was up .49 and select up .71. Pork cutout values were down .63. Cash hog index for IA-MN was down sharply yesterday. I will be giving a Pre-USDA Report outlook at the Northern IL Farm Show at 10:00 am. Look forward to seeing you there.
Markets as of 5:10 AM
  • Mar Corn    -1 1/2
  • Jan Beans   -4 1/2
  • Mar Wheat   +1
  • Feb Cattle  +.10
  • Feb Hogs    -.50
  • Mar Dlr     +.10
  • Mar S&P     +.50
  • Jan Crude   -.12
  • Feb Gold    -.50
Contact Allendale: 800-262-7538 service@allendale-inc.com www.allendale-inc.com

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