Demand Continues to Fuel Rally in Grains
May 18, 2012
Good Morning! Paul Georgy with early morning comments for May 18, 2012 at 5:10 am. Corn and soybean futures are lower. Watch for export sales announcements from USDA at 8:00 am. As we close out the week there are many factors driving market volatility in grains. Weather is dry in Russia and the western portion of the Southern US plains. Macro markets are very much on edge with Greece and the Euro situation. The NATO meeting in Chicago has traders reducing position size and some may not come to work on Monday. The option volume in the pits on the CBOT trading floor is still very important for market liquidity. The CME is still working on starting the expanded hours on Sunday but there is a greater probability it will begin on Sunday June 3. We will be waiting for an official announcement sometime today. Technical traders want a strong close for the week above key moving averages. Headline excitement will be needed to continue feeding the rally. Cattle futures have put together a string of positive days as traders expect cash markets to trade higher this week. Choice beef was up .12 and select was up .73. Pork cutout values were up 0.75. Cattle futures will likely see some two sided trade today ahead of "Cattle on Feed" report at 2:00 pm. Don’t forget to sign up for the Ag Leaders Webinar
on May 22, 2012. Join Rich Nelson, Allendale's Director of Research, as he examines potential grain acreage shifts and their impact on supply and futures ahead of USDA's big Grain Stocks report in June. We also will have Mike Kavanaugh, Agronomy Manager of AgriGold, to examine crop conditions and their corresponding yield potential. Frank LaPlaca will examine chart price projections. Register HERE
Markets as of 5:10 AM
Jly Corn -1/4
Jly Beans -7
Jly Wheat -1
Jun Cattle +.27
Jun Hogs +.32
Jun S&P +5.25
Jun Dlr +.09
Jun Crude +.02
June Gold +16.60
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Thursday’s strong close in the wheat market above the $6.55 ½ cluster high and down trend line that has capped the wheat market for the past 8months. Has created a base and reversal environment in which a neutral stance is advised in the near term. A close above the $6.80 ½ cluster high would confirm a new uptrend.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The government’s weather group, NOAA, gave its monthly update on long term weather this morning. Their previous forecast, for May – July called for normal temps and normal precip. The new forecast, for June – August, calls for normal temps for the main growing regions and normal precip.
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.