Grain Futures Recover Slightly Overnight
Mar 07, 2012
Good Morning! Paul Georgy with early morning comments for March 7, 2012 at 5:10 am. Grain markets are mostly higher this morning. Spreading has been a key market mover recently as traders get positioned for Friday’s USDA Report. There is talk that soybeans are getting strength from Chinese buying as South American deals with port delays. Another twist is the reduced supply of DDGs is creating more demand for soybean meal, ultimately supporting nearby beans. News wires are reporting trade guesses for the Argentine bean crop is 46.8 and for Brazil it is 69.3. Traders are expecting lower ending stocks for both old crop corn and old crop beans. Friday morning could create some fireworks as the US employment and USDA Supply and Demand report will be released at 7:30 CST. The risk-off attitude by traders is surrounding the chance that Greece defaults by early Friday. Weather in South America should not have much of an impact in the near-term. Allendale is in the final days of gathering data for the 23rd
Annual Planted Acreage survey. If you haven’t gone to www.allendale-inc.com
and filled out a survey we would appreciate you doing it now. The more accurate data, the better the results. Livestock futures are trying to rebound from yesterday’s selling attack which stemmed from fund profit taking. Cash cattle sales are likely to wait until late week. Choice beef was up .12 and select was up.56. Pork cutout values were slightly lower. Thank you to AgriGold for hosting the meeting in Riverside IA yesterday. Thanks to a great group of interested producers with many questions.
Markets as of 5:10 AM
Corn +1 to +2 Live Cattle -10 to +20 US Dollar Index -.14
Beans +2 to +3 Lean Hogs -15 to -25 Crude Oil +.585
Wheat +0 to +3 S&P Index +5.50 Gold +8.50
Allendale Advanced Charts
Crude Oil closed near session lows on Tuesday and all but filled the gap left 10 sessions ago. Support crosses at 104.50 and 104.10. There is a long-term uptrend line which crosses at 101.00.
Nelson Notes from the desk of Rich Nelson
Analysis firms Safras & Mercado, Celeres, and Abiove all lowered Brazilian soybean production to 68.23, 69.8 and 69.5 million tonnes respectively. The USDA estimate was 72 million in February.
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.