Greece Passes Austerity Plan; Grains Higher
Feb 13, 2012
Good Morning! Paul Georgy with early morning comments for February 13, 2012 at 5:10 am.
Grain futures are starting the week higher as risk-on attitude provides the money flow. The Greek Parliament passes plan for cuts in their budget which will allow them to get the money from the EU. The next step will be the EU Finance Ministers meeting on Wednesday. Soybean markets have shown some strength due to less rain in southern Brazil than expected. The nearby contracts have seen some support on rumors China was buying. There will be a Chinese delegation in the US this week to sign trade agreements. The Chinese Premier usually makes an announcement of large bean purchases at that time. Just remember in the past they were not all new purchases. Trade will likely be well supported until this announcement. Egypt was a buyer of wheat over the weekend of 595,000 tonnes. The US got on 55 tmt while France sold 300 tmt and Argentina sold 240 tmt. Keep an eye on the macro markets this week and keep in touch with Allendale Research or your Allendale broker for an announcement from China. Cash cattle traded 1.00 higher in Texas at 124.00 while dressed trade in NE was steady to .50 lower is some area at 197.00 to 198.00. Choice beef traded .33 higher while select was .44 lower. Not a lot of help in narrowing the negative margins for packers. Pork cutout values were higher on Friday. February hog contracts go off the board this week. April futures closed on horizontal support on the charts. We are expecting livestock futures to take their direction from outside markets at 9:05. We invite you to join us on the Allendale 2012 Road Series. Meet us in Carrington ND
on February 24, 2012 for more info and free signup click HERE
. We have also just scheduled a meeting in Riverside IA
on March 6 details click HERE
Markets as of 5:10AM
Corn +5 to +6 Live Cattle called stdy to higher US Dollar Index -.40
Beans +10 to +12 Lean Hogs Called stdy to higher Crude Oil +.97
Wheat +8 to +9 S&P Index +8.50 Gold +3.50
Allendale Advanced Charts
Chicago wheat went through the 100 day and 20 day moving average but held the 50 at 6.27. We are looking for a downside target near 6.00 where we find major trendline support.
Nelson Notes from the desk of Rich Nelson
The General Administration of Customs indicated China imported 4.61 million tonnes of soybeans in January. That was down from December’s strong 5.42 mt level. Traders note this year’s Lunar New Year, a week-long holiday, occurred in January this year instead of the normal February. The Chinese government estimates February and March imports at 3.7 and 4.0 mt respectively.
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