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May 21, 2012
Good Morning! Paul Georgy with early morning comments for May 21, 2012 at 5:10 am. Corn and soybean futures are mostly higher but well off the overnight highs. Memorial Day is normally known as the kick-off for cookout season and with the action in grain prices on Friday and overnight we have officially begun weather market season. World Weather Inc. said in last evening’s report, "the bottom line remains one of building concern over dryness in the southern and eastern Midwest during the next two weeks. Much pressure will be on the next week’s mid- to late-week rain event and because it is so far out in the forecast it must be viewed cautiously. Crop moisture stress is already an issue in southeastern Missouri, southern Illinois, extreme southwestern Indiana, Kentucky and areas southward into the Delta. Rainfall this week will be minimal in the region and that will likely maintain a need for significant rain. Some partial relief from dryness is possible today and Monday as scattered showers and cooler air move into the drier areas, but the relief will be quite limited and stress will be back again later this week and last into next week." The USDA will gives us the first crop conditions for corn this afternoon which will be watched closely by the trade. CFTC Commitment of Traders Report released on Friday showed funds liquidated another 38,000 corn contracts to put their lowest net longs to level not seen since 2010. The Greek elections will not be held for about a month but the Euro situation remains tense. Cattle on Feed report on Friday should support cattle futures this morning. Choice beef was up 1.41 and select was up .73 on Friday. Pork cutout values were down 1.20. Look for steady higher open for livestock. With the volatility in the Grain markets there is plenty of reason to attend the Ag Leaders Webinar
tomorrow evening, May 22. Join Rich Nelson, Allendale's Director of Research, as he examines potential grain acreage shifts and their impact on supply and futures ahead of USDA's big Grain Stocks report in June. We also will have Mike Kavanaugh, Agronomy Manager of AgriGold, to examine crop conditions and their corresponding yield potential. Frank LaPlaca will examine chart price projections. Register HERE
Markets as of 5:10 AM
Jly Corn +1 1/2
Jly Beans +8 3/4
Jly Wheat -3 1/4
Jun Cattle stdy-higher
Jun Hogs stdy-higher
Jun S&P +7.75
Jun Dlr -.10
Jun Crude +.33
June Gold -.08
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Friday’s impressive trade in the Dec. Corn has created a base and reversal environment. While still capped by the down trendline these levels should be used to price further unprotected production.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Weather is now at the forefront of trade discussion. As noted above, no significant rain will be seen in most areas. Combined with above normal temps, we’re starting to see a weather story which helps counter trader uncertainties tied to Greece and the Euro.
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.