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The Allendale Wake-Up Call

RSS By: Paul Georgy,

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.

Weather in South America Takes Center Stage

Dec 28, 2011

Weather in South America Takes Center Stage
Good Morning! Paul Georgy with early morning comments for December 28, 2011 at 5:20 am. Grain markets are mixed as corn and wheat are higher and soybeans lower. Weather forecast out of South America is the major focus in grain markets this week. Brazil is expected to receive adequate rains over the next few weeks however Argentina is another story. They missed significant moisture over the weekend and the 5 to 10 day outlook is for no rain. There also is a difference in the US and Euro models. The Euro is much drier for Argentina. Look for weather forecast to dominate trade until Argentina gets rain. News out of the EU is limited. Italy’s bond auction was completed with much lower rates overnight. The lower rate is welcomed for a country in the center of EU financial crisis.  Late, last week, cash cattle sales were reported at $123 in TX and KS. It appears difficult to trade cash any stronger than last week as supplies build and futures sell-off. The short week could keep cash hogs under pressure until we get back to a full slaughter week. Futures retrace on profit-taking and light holiday volume. It is less than a month away from the Allendale Leaders Conference. Call to today and reserve your seat 800-262-7538 or click
Markets as of 5:20 AM
Corn: 2 to 3 higher               Beans: 7 to 9 lower               Wheat: 2 to 3 higher
Live Cattle: 20 to 30 higher                         Lean Hogs: 20 to 30 higher
Dollar: .02 lower                    Crude: .45 lower                   Gold: 6.50 lower
Allendale Advanced Charts
Beans gapped higher on Tuesday and had no problem taking out the 50 day moving average and the 50% retracement level. The market even tested 62% near 12.20. The close was strong, but given this large bar & gap below we would not be surprised to see a pullback this week.
Nelson Notes from the desk of Rich Nelson
Saturday, December 31 marks the end of the ethanol blending subsidy as well as the end of the import tariff. For now, as US ethanol is cheaper than Brazilian product, the US will remain a net exporter. Over the next 10 years, the Brazil Sugarcane Association expects production to increase 10 fold and for their product to meet some US demand.
Contact Allendale: 800-262-7538
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.

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