World Eyes on Greece and Italy as Grains are Firm
Nov 14, 2011
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Allendale President and CEO
Good Morning! Paul Georgy with early morning comments for November 14, 2011 at 5:20 am. Grain futures were higher overnight on short covering. The Eurozone news is waiting for Greece to implement policies to meet the requirement for the EU funding. Italy is working frantically to elect a new cabinet for new government since Berlusconi’s resignation. Traders will be watching the Italian bond auction this week with 7% being the critical level. Portugal released economic data showing they are moving deeper into recession. Weather in South America should be great for planting and crop progress. The Ukraine’s crops are going into dormancy with moisture on the short side. November soybean contract goes off the board today. Grain markets are oversold therefore a rebound could be possible. Cash market basis is suggesting farmers have closed the bin doors, probably until mid-December. We expect headline traders to create choppy markets again this week as the Eurozone will provide the news. The beef cutout values were slightly higher on Friday but will not do much to fill the negative packer margins. Pork cutouts were lower as the retail counter space features turkey. Investor attitude will be focused on the dollar and potential export business.
Markets as of 5:20AM
Corn—0 to 1 higher Beans—8 to 10 higher
Wheat—0 to 1 lower
Live Cattle—called steady higher Lean Hogs—called steady higher
Dollar— .40 higher Crude— .95 lower
Gold— 11.70 lower
Allendale Advanced Charts
Crude oil continues its climb as the market heads toward 62% retracement, which is near the $100 per barrel level. This market has not remained above $100 for a good amount of time since May.
Nelson Notes from the desk of Rich Nelson
Using agreements with Ukraine’s Black Sea port of Sevastopol, approximately 100,000 tonnes of Kazak wheat has made it to the facility by rail. Agreements such as this, as well as $40 per tonne government subsidies on exports, will help this landlocked country.
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