Euro Elections Create Stability Concerns
May 07, 2012
Good Morning! Paul Georgy with early morning comments for May 7, 2012 at 5.05 am. Corn and soybeans futures are lower. The macro markets are providing a risk off attitude for investors after Euro countries vote. The French election went to the Socialist party for the first time in 17 years and only the second time in history. In the Greek election, the ruling party lost seats which could cause problems making further austerity cuts there. Corn basis is strong with central IL with processors paying 60 over July on Friday. This afternoon planting progress should show an increasing of corn planted last week although rain kept many producers out of the field. Thursday’s supply and demand report will be the focus for the week. Analyst expectations are for a sizeable increase in ending stocks for 2012-13 for corn and a much tighter ending stocks in soybeans. Last week I traveled to the Allendale branch offices in Burlington IA and Pilot Grove MO. The corn crop looks like it is getting off to a great start and there should be a high percentage in the good to excellent in the conditions report. Livestock futures are likely to start the week as it closed out Friday. Boxed beef was lower on Friday with choice down .67 and select down .79. Pork cutout was higher by .76. The livestock markets are oversold with June hogs setting new contract lows on Friday. Follow us on twitter at Allendale_paul
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Markets as of 5:05AM
Jly Corn -4 1/2
Jly Beans -8 3/4
Jly Wheat -4
Jun Cattle Lwr
Jun Hogs Lwr
Jun S&P -7.75
Jun Dlr +.20
May Crude -.66
June Gold -3.20
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Friday’s break of the 3/30/12 low of $5.23 exposes the Dec Corn contract to further losses. Trade above the 4/27/12 $5.45 high is needed to change this trend from down to neutral. A close below $5.23 could expose this market to sub $5.00 prices.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The monthly employment report held disappointing news. 115,000 new jobs were created in April compared with expectations of 170,000. This was the lowest monthly gain since October.
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.