Traders Prepare For Long Weekend
Aug 31, 2012
Good Morning! Paul Georgy with early morning comments for August 31, 2012 at 5:15 am. Grain futures are lower across the board. Russian Ag Minister says there will be no ban on exports as long as he is in charge. Even with a large reduction in Russian wheat production, domestic supplies will be adequate this year. Bernanke speaks at 9:00 AM central time with many hoping to hear an announcement of QE3. There may be some disappointment adjusting ahead of the long weekend. Corn and soybean basis on the interior was down another 5 cents on Thursday. Harvest is in full swing in many areas. Path of Isaac is still projected to move through the Midwest this weekend. The US and Euro models are projecting rain amounts of 1 to 3 inches through most of Midwest. Traders are concerned about the potential damage to the soybean crop due to heavy rains. By Tuesday morning we should have a better assessment of any damage. On August 29th, last year, a top was put in on soybeans. We made a contract high yesterday in the November soybean contract. Traders will likely even up some positions going into a long weekend. Grain futures will begin trading at 7:00 PM Monday evening. By Monday we will have many of these questions answered. The macro influence will be watched closely while waiting for headlines out of Europe. Draghi is expected to announce some kind of stimulus package for the EU next week. A few cattle traded at 188 in the north which was steady strong compared to last week. Bids and offers in the south are 4 to 6 dollars apart. We expect one side or the other to bend a little today. August Live Cattle stop trading today at noon. Boxed beef was lower on Thursday with choice was down .09 and select was down .92. Pork cutout values continue the price slide going into the Labor Day holiday with Thursday value down .99. Today is the last day to participate in the Allendale Yield Survey. We will be releasing the results of the survey on Tuesday Sept 4th.
Markets as of 5:15 AM
Dec Corn -3 3/4
Nov Beans -8 3/4
Sep Wheat -6 3/4
Oct Cattle +.60
Oct Hogs +.10
Sep S&P +5.50
Sep Dlr -.31
Oct Crude +.42
Dec Gold +3.30
Allendale Advanced Charts
Yesterday’s trade in Dec Wheat has opened up the market to more questions than answers. Was Wednesday’s strong price action the start of a recovery attempt to new highs? Or was it one day of short covering and yesterday’s high is the new pivot high that we must respect as we start a leg lower? Due to the amount of questions in Dec Wheat and the sideways nature of the chart we feel that a neutral stance would be the best approach…Frank La Placa
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Hurricane Isaac is making its slow path Northward through Louisiana. The Northern half of the state will see rains between 3 and 5 inches. That will subside it is moves into the Midwest.
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