Weekly Export Sales Release This Morning
Dec 22, 2011
Good Morning! Paul Georgy with early morning comments for December 22, 2011 at 4:40 am. Grain futures are slightly lower on profit-taking as holiday week approaches. The macro markets are setting back after the early week rally. Some of the enthusiasm has disappeared after the first round of long-term refinancing operations by ECB. The action in Washington between the House of Representative and the Senate on the payroll tax bill continues to add uncertainty to a market where volume continues to decline. The grains are again being impacted by weather in Argentina. Yesterday temps hit record levels in some areas with highs between 100 and 110. About 40% of region received rain with a total coverage expected this week of 70%. Temps are cooling down with current system moving through. Brazil should get rain later this week. Traders will be watching for the Weekly Export Sales numbers which will be released at 7:30 today. Sales are expected to range from 400-600 tmt of beans, 80-150 tmt of meal, and 2-10 tmt of soyoil. Estimate is at 450-650 tmt for corn and 350-550 tmt for wheat. Choice beef was up .29 and select was down 1.39 on Wednesday. Cash cattle are still at a standstill. Pork cutout values were down .18 with cash and futures under pressure Wednesday. The USDA will release a Hogs and Pigs report on Friday afternoon. Markets will be closed on Monday and there will be no night session on Monday. Therefore there will be no Wake-Call on Monday or Tuesday morning next week. We wish everyone a merry and safe holiday.
Markets as of 4:40 AM
Corn: 3 to 5 lower Beans: 5 to 7 lower Wheat:3 to 5 lower
Live Cattle: 15 to 25 higher Lean Hogs: 10 to 15 higher
Dollar: .05 lower Crude: .09 higher Gold: 3.10 lower
Allendale Advanced Charts
The dollar index tested the bottom of the uptrending channel on Wednesday, but has since rebounded and is pushing toward the 10 day moving average again. A close above the 10 day moving average could allow a move to 81.00.
Nelson Notesfrom the desk of Rich Nelson
The General Administration of Customs reports China imported 2.5 million tonnes of soybeans from the US in November. From South America, they purchased 3.0 million. This confirms well known market talk that Brazil and Argentina are running the show in what is typically a US supplied time of year.
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.