Weather Worries Wake Up Buyers
Jun 04, 2012
Good Morning! Paul Georgy with early morning comments for June 4, 2012 at 5:10 am. Corn and soybean futures are higher. Weather forecast leads grain prices higher right from the opening last night. World Weather Inc. says, "Seven day rainfall ending Sunday, June 10, will range from 0.05 to 0.50 inch in the eastern Midwest with a few pockets of slightly more rain. Rain amounts in the west will vary from 0.20 to 0.75 inch with a few amounts to more than 1.00 inch. Temperatures will remain mild this week with highs often in the 60s and 70s. Warming is expected Friday into the weekend with highs rising into the upper 70s and lower to middle 80s." Producers I talked to last night were happy with the way the corn crop looks now. They are thankful for cooler temps with little amount of rain in the forecast. Crop conditions report out this afternoon. Farmers in Buenos Aires province in Argentina started a 9 day strike on Saturday due to the government’s increase of land taxes. This the largest agricultural production state in Argentina. The Greek parliamentary election set for June 17 is too close to call by pollster. Spain is becoming the main focus in the EU. Spain’s credit issues are worse than Portugal was before they asked for help from the Euro ministers. Managed Money reduced long corn positions last week by 47,529 to a net long of 61,493. They added to long position in wheat by 8,449 to give them a net long position of 15,585. There was only a slight change in net soybean positions. Can the livestock futures buck the negative attitude on Wall Street this week? Closing out trade on Friday both cattle and hogs put in a strong performance for the last trading day of the week. However boxed beef values were lower, with choice down .06 and select down 1.69. Pork cutout was up .44. Stay in touch with Allendale Research Center
for more insight on what is happening in the markets as we near the USDA June Supply and Demand Report.
Markets as of 5:10 AM
Jly Corn +12
Jly Beans -0 1/4
Jly Wheat +7 1/4
Jun Cattle stdy-lwr
Jun Hogs stdy-lwr
Jun S&P -2.25
Jun Dlr -.09
Jun Crude -1.51
June Gold -2.20
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Friday’s attempt at recovery in July Corn was met with resistance. Even though we did carve out a new low at $5.51 we need to remember that there were buyers present and we did trade higher. This could create a scenario where sellers develop a false sense of security.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The monthly employment report from the government held bad news. The trade was expecting to see non-farm payrolls increase by 150,000. Instead the government’s survey indicated an anemic increase of only 69,000. That was made from an 82,000 gain for private employment and a 13,000 loss for government employment
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.