Markets Lower Overnight
Aug 22, 2012
Good Morning! Paul Georgy with early morning comments for August 22, 2012 at 5:05 am. Grain futures have backed off a little bit this morning after two days of sharply higher markets. Today we will be getting the third day of tweets from the crop tour. Can the bullish news continue to drive futures to new all-time highs? It seems that the tour should be getting into an area today where yields are a little better. The world corn supply is being threatened by a typhoon off the coast of China. It is projected to hit land in the Dalian port area and could affect 20% of China’s corn producing area. This will be watched closely early next week. Stats-Canada will be releasing their production estimates later this morning. September option expiration will occur on Friday. Macro markets provided support to commodities yesterday with the collapse of the dollar. The Euro has found confidence again as the ECB is providing liquidity to keep the Spanish bond rate below 7%. The EU leaders are planning a week of shuttle diplomacy starting tomorrow. The hope is they will figure out some answers for the building debt crisis of the region. Livestock are being negatively impacted by high feed cost. Boxed beef was lower on Monday with choice down .03 and select was up .05. Pork cutout was down 2.09 yesterday. Allendale is continuing to gather data for the Allendale 23rd
Annual Yield Survey. Your help is very important to making it a success. Please go to www.allendale-inc.com
and fill out the online survey. Allendale Ag Leaders Webinar is scheduled for August 28 at 8:00 PM Central time.
Markets as of 5:05 AM
Dec Corn -2 3/4
Nov Beans -8 1/2
Sep Wheat -7
Oct Cattle -.05
Oct Hogs -.42
Sep S&P -3.00
Sep Dlr +.04
Sep Crude +.71
Dec Gold +.80
Allendale Advanced Charts
Yesterday’s short term momentum failure in Oct. Live Cattle has set the market up for a challenge of the 8/02 $123.55 pivot low. If we do see a close below this level, we would have to assume that the rally attempt has failed and we will see a resumption of the bear trend…Frank La Placa
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The week of last year’s crop tour provided a rally of 41 3/4 cents in Dec corn and the corn market topped on August 28, the following Monday. The soybeans topped on August 31. The ensuing sell-off was significant.
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