Narrow Trading Ranges for Grains Overnight
May 04, 2012
Good Morning! Paul Georgy with early morning comments for May 4, 2012 at 4:50 am. Corn and soybeans futures are higher. Macro markets continue to hand trader’s negative news which causes money flow to exit commodity investments. Weekly export sales were excellent with corn 3.47 mmt and soybeans 1.70 mmt. Watch for more sales to be announced at 8:00 am this morning. China has been a big buyer of new crop soybeans this week. CME delays the expansion of trading hours until May 21 due to filing issues at CFTC. The increase in margins for exchange members could impact the volatility as we go into the weekend. Watch for some evening up of positions before the margin requirement increase takes effect on Monday. World Weather Inc. says "the bottom line is the Midwest will see frequent rain through Monday and soil moisture should be favorable throughout the region. Planting delays will increase, but some fieldwork should continue around the rain. Shower activity will decline next week and planting should become more aggressive."
Next week we will have to deal with the USDA supply and demand due to be released on Thursday morning. We will provide more research on what the USDA may say next week.
Cattle futures rebound on Thursday to relieve the oversold condition in this market. A strong close today will be needed to convince traders a bottom has been set. Cash cattle traded on a few head in the south at 119 while product markets were mixed. Choice was down .22 and select was up .47 with pork cutouts down .35 on Thursday. Many traders are looking for the cookout season to provide better demand for meat. Follow us on twitter at Allendale_paul
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Markets as of 4:50AM
Jly Corn +1 3/4
Jly Beans +5 3/4
Jly Wheat +2 1/4
Jun Cattle +.25
Jun Hogs +.05
Jun S&P -1.75
Jun Dlr +.05
May Crude -1.22
June Gold -4.70
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Today’s sharply lower trade in crude oil has established the May 1st high of $106.43 as the pivot high in this downtrend. Unless we see a close higher than this price level, further pricing pressure should be expected.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Due to big sales to China and Unknown last week, the combined old and new crop corn sales were the largest single week export sales since 1991.
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.