Traders Wait for USDA Report
Mar 09, 2012
Good Morning! Paul Georgy with early morning comments for March 9, 2012 at 5:15 am. Grain futures are higher ahead of this morning’s USDA report due at 7:30. The Dollar is higher as Greece uses collective action clauses to complete the debt swap deal. Unemployment numbers out at 7:30 could also have an impact on commodity prices this morning. The export sales data released on Thursday morning surprised bean traders with over 1.600 mmt sold. Trade was expecting 500 to 700 tmt. Funds have been buying beans and selling corn in a big way going into today’s report. The trade seems to be expecting a large reduction in South American soybean and corn production. IBGE, Brazil’s stats agency dropped production to 67.52 mmt which was below the CONAB estimate. The numbers to watch when the report is released this morning are the US corn and soybean ending stocks and the Brazilian and Argentine corn and soybean production. We will provide a complete update on the "Morning Coffee" segment on YouTube by 8:00 am. The pork industry will be getting more timely information when (FAS) begins releasing weekly pork exports which should be coming soon. Cash cattle traded at 126 to 127 on a decent volume this week. Beef was dropped sharply on Thursday as choice was down 1.73 and select was down 1.13. Pork cutout values were lower by 1.43. Check out the Allendale Research Center and stay up to date with market moving information.
Markets as of 5:15 AM
May Corn +3 ¼ Apr Cattle -.27 Jun $ Index +.27
May Beans +14 ¼ Apr Hogs +.47 April Crude +.20
May Wheat +4 Jun S&P -2.00 June Gold +1.30
Allendale Advanced Charts
Corn was forced lower by fund selling on Thursday, settling below the key moving averages for the second day. The door is now open for a move to the 6.26 area.
Nelson Notes from the desk of Rich Nelson
Reuter’s newswire, in a private investigation with Beijing brokerage firm JC Intelligence, estimates the Chinese government overstated last year’s corn crop from 6.8 to 24.0 million tonnes. Last year’s corn crop was announced to be a record 191.75 million tonnes. If true, this would imply China may be a more aggressive buyer than many expect this year.
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