Traders Prepare for Labor Data This Morning
Feb 03, 2012
Good Morning! Paul Georgy with early morning comments for February 3, 2012 at 5:15 am. Grain markets are higher this morning. The risk-on attitude by investors across the commodity complex is providing support. The trade will be closely watching the US employment numbers due to be released at 7:30. Europe’s financial problems have not gone away but have cooled off for a few days. They will be back! The USDA will be giving us the monthly supply and demand on Feb 13. On the 23rd of February, the USDA will release its estimate for 2012 production of corn and soybeans. With profitable return projections for corn over beans, the trade is expecting some increase in corn acres. Weather has taken a backseat as more rain is forecast for South America. The weather system moving across Colorado and Nebraska could cause some problems for livestock producers over the next few days. Cash cattle markets are still at a standstill with winter storm closing in. Choice beef was down 1.08 and select was down .15 on Thursday. That makes it difficult for packers to raise bids when margins are deep in the red. Tight supplies of market ready cattle are providing underlining support. We expect cattle to trade late today. Pork product struggles as well at the retail counter, cutout values were down .32 yesterday. Call an Allendale Rep today to answer any question about the markets at 800-262-7538. We just booked a meeting in Carrington, ND on February 24, 2012. We will have all the details for you early next week. Get all the details by subscribing to the Allendale Research Center.
Markets as of 5:15AM
Corn +2 to +3 Live Cattle +05 to +15 US Dollar Index -15
Beans +6 to +8 Lean Hogs +05 to +17 Crude Oil +58
Wheat +4 to +6 S&P Index +3.00 Gold +3.50
Allendale Advanced Charts
Feeders traded in a small range with an inside bar. The uptrend remains intact with the 10 day moving average running near the uptrend support line. A sharp selloff could occur if this support is broken.
Nelson Notes from the desk of Rich Nelson
Thursday morning’s weekly export sales for soybeans, at 308,400 tonnes for old crop, 11 million bushels, will be considered disappointing.
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.