Grain Rally Led by Corn
Apr 19, 2012
Good Morning! Paul Georgy with early morning comments for April 19, 2012 at 5:10 am. Grain futures are higher, led by talk that China was buying old crop corn. The sharp sell-off in old crop corn futures yesterday makes US corn prices competitive in China. The oversold condition in grains has helped fuel the overnight jump in prices. The outside markets are not providing much direction this morning as they have narrow trading ranges. Spreading will likely be a factor again today. Weekly export sales estimates are: corn 500 to 850 tmt, soybeans 650 to 1,150 tmt and wheat 400 to 700 tmt. The actual USDA data will be released at 7:30. Boxed beef values were higher on Wednesday, Choice was up 2.29 and Select was up 1.68. The reduced production and lower price has bought some buyers back to the retail counter. Pork values were down 0.22. Lean hog futures have been in a tailspin as funds build short positions this week. USDA will release the Cattle on Feed report this Friday afternoon at 2:00 pm. You have until Friday to get the "Planting Special" subscription for only $99.00.
Markets as of 5:10 AM
May Corn +16
May Beans +17
May Wheat +12
Apr Cattle +.27
Jun Hogs +77
Jun S&P +8.00
Jun $ Ind +.01
May Crude +.36
June Gold +2.90
Allendale Advanced Charts
Beans fell toward the current uptrend line on Wednesday as bears took control. In order to keep the uptrend in place we need a rally very soon.
Nelson Notes from the desk of Rich Nelson
Spain: Politicians are seeking to cut 10 billion euros in government expenditures. The latest cuts will come from the health care and education sectors. The country has indicated it will reduce its government spending short fall from 8.5% of GDP to 5.3% this year. Economists are concerned this cut will bring it back into recession.
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