Grains Take Back Yesterday’s Gains
Nov 30, 2011
Good Morning! Paul Georgy with early morning comments for November 30, 2011 at 5:20 am. Grain markets are lower overnight as outside market news undermines trader’s confidence. Macro news continues to raise questions as to where should money be invested. The news of Italy’s bonds trading at 8% you would think would be bearish the euro. However traders spun it to be bullish because it wasn’t as bad as they thought it would be. The Eurozone finance ministers have gone begging to the IMF to add more firepower to their bailout fund. Weather in South America is pretty ideal for crop growth. Australia is having problems with too much rain in some areas. This may cause quality problems for wheat which will eventually compete against corn. Argentina Ag Ministry has estimated their corn production at 30 mmt versus the previous record of 22.5 mmt. Delivery intention for December contracts will be released early this morning. Traders are looking for positive news on the Weekly Exports sales report on Thursday morning. Beef product has come under pressure the last few days. Choice was down .98 and select was down .46 on Tuesday. Pork cutout values were down .16 yesterday. Livestock futures will be looking at outside markets for support. Don’t forget to sign-up for the year end special Allendale Research Center for complete coverage of markets.
Markets as of 5:20AM
Corn: 4 to 7 lower Beans: 2 to 4 lower Wheat: 3 to 5 lower
Live Cattle: 30 to 40 higher Lean Hogs: 20 to 40 higher
Dollar: .03 higher Crude: .30 higher Gold: 1.00 higher
Allendale Advanced Charts
The dollar index has established an uptrend. The early Tuesday test of the longterm support with a rebound late was important to maintaining the upward bias. Tuesday’s low will now become critical support. See trade recommendation in Allendale Advance Charts page 9.
Nelson Notes from the desk of Rich Nelson
Winter wheat good to excellent ratings advanced 2% to now 52%. This will be one of the last wheat updates before dormancy. USDA has stopped reported corn and soybean harvest results.
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.