Markets Look Ahead to Friday’s Report
Mar 26, 2012
Good Morning! Paul Georgy with early morning comments for March 26, 2012 at 5:10 am.
Grain futures are mixed this morning. Soybeans are leading the grain markets higher as the abnormal, warm temps allow for early season fieldwork and potential planting of corn. The forecast for a smaller Brazilian bean crop, almost on a daily basis, is providing buyers with reasons to hold long positions going into the USDA report on Friday. Spreading will be a major influence on price movement this week as trader’s position for the USDA Prospective Planting and Quarterly Stock report on Friday morning. Trade estimates can be found in the Grain Section of the Allendale Research Center. Corn and wheat futures are sitting on technical support levels. Further selling could trigger more sell stop activation if these areas are broken. Look for some very choppy markets this week. Cattle on feed report showed we have more cattle on feed than a year ago and fewer cattle were marketed during February than the trade was expecting. This report is considered slightly bearish but with the sharp price decline in recent days may not have much impact on price. Product demand is the real problem for beef cutout values were lower again on Friday. Choice was down 1.51 and select was down 1.10. Pork cutout values were down .15 on Friday. Livestock futures are indicating a much oversold condition. Allendale has a special pricing for the Allendale Research center go to www.allendale-inc.com
for more details.
Markets as of 5:10 AM
May Corn +1 Apr Cattle stdy-lwr Jun $ Index +.21
May Beans +11 Apr Hogs stdy-lwr May Crude -.38
May Wheat +0 Jun S&P +2.25 June Gold -2.90
Allendale Advanced Charts
Cattle fell through support on Friday testing major support level at 120.00. This contract is oversold however resistance crosses at 121.27 which was Wednesday’s low.
Nelson Notes from the desk of Rich Nelson
US grain traders suggest China may have bought at least two cargoes of Argentine soybeans yesterday. Based on yesterday’s weekly export sales, covering sales from March 9 – 15, it appeared China was backing away from US product. Based on industry talk of China’s action this week, it appears this may be the start of a new trend.
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.