Traders Look Ahead To Month End Report
Mar 19, 2012
Good Morning! Paul Georgy with early morning comments for March 19, 2012 at 5:10 am. Grains are lower as traders take profits. The fundamental issues traders will be watching this week are weather conditions in South America and rainfall through the Midwest in the US. Corn planting is getting underway in the southern half of the cornbelt. Exports will be watched very closely this week for confirmation that China has bought corn or soybeans. Allendale’s 95.012 estimates for planted acreage of corn will make it much easier to achieve a 14 billion bushel corn crop in 2012. Thanks to all who participated in this year’s survey. The port situation in Brazil and Argentina will remain a problem for meeting their shipment. However the port worker strike has ended and things are expected to get back to normal by early April. Money flow is still going to be the biggest market mover. Watch headlines and technical chart points for direction. Beef prices close out the week with choice down another .29 and select down .41 on Friday. Pork cutout values were down .03. We would expect a steady-higher call for the opening today, after the sharp selloff on Friday in the livestock futures.
Markets as of 5:10 AM
May Corn -8 Apr Cattle stdy Jun $ Index +.02
May Beans -9 Apr Hogs stdy April Crude -.29
May Wheat -7 Jun S&P -2.75 June Gold +1.30
Allendale Advanced Charts
The soybean market has been in a steady uptrend for the past 3 months. Support should be found at 13.50 where uptrend support line crosses.
Nelson Notes from the desk of Rich Nelson
Allendale’s 23rd annual acreage survey found a large net increase in the nation’s top three crops. Producers told us there would be more corn planted than USDA estimated at the AgForum conference. Soybean and wheat plantings would be smaller than USDA previously estimated.
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.