Dollar Rallies on No Deal in EU
Dec 12, 2011
Good Morning! Paul Georgy with early morning comments for December 12, 2011 at 5:25 am. Grain markets were quiet overnight on light volume. Markets were adjusting from USDA numbers released on Friday when the US ending stocks of soybeans was raised by 35 million bushels. World corn ending stocks were raised significantly as well. Next month’s supply and demand report will be watched closely because that is when the USDA can make major changes in supply and adjust previous data. Traders are already beginning to prepare for this report. The euro is under pressure this morning as investors are worried about the indecision coming out of the summit in Brussels. England is the only country not in agreement with plan but others will have to have national votes in their countries to ratify such a change. This could take months which could create short term financing problem. The livestock markets are expected to open lower this morning as outside markets and last week’s cash news weigh on traders’ minds. Cash cattle traded $4.00 lower on Friday and product was down over a dollar. The charts look heavy as technical support was broken in hogs and cattle on Friday. Stay tuned to Allendale Research as we go into choppy holiday markets.
Markets as of 5:25AM
Corn: 1 to 2 lower Beans: 4 to 6 lower Wheat: 1 to 2 lower
Live Cattle: called steady lower Lean Hogs: called steady lower
Dollar: .58 higher Crude: 1.26 lower Gold: 31.80 lower
Allendale Advanced Charts
Soybeans felt pressure from a bearish USDA report, held a quarter cent above the key 11.00 area. However, the close was in the lower half of the trading range which creates concern if the market can hold support.
Nelson Notes from the desk of Rich Nelson
According to the USDA on Friday morning, there was no loss in corn production this year. Increases in non-US production, totaling 8% this year, offset our yield problems.
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