Holiday Trade Arrives Early
Nov 15, 2012
Good Morning! Paul Georgy with early morning comments for November 15, 2012 at 5:10 am. Grains are mixed in a quiet overnight session. Export sales data will be released on Friday morning due to the Veterans Day holiday last Monday. Markets have been relatively quiet as the major index rolls are complete and the holidays approach. Next week the grain markets will be closed on Thursday for Thanksgiving and will trade on Friday the 23rd from 9:30 am to 12:00 pm. With the uncertainty of the US financial situation, traders are reluctant to build positions. The weak 2 day rally in grains will likely have longs turning seller again unless we get some announcement of sizeable US grain exports. The Mississippi River issue is causing freight rates to jump and Illinois River basis to drop. Other Midwest basis continues to move higher as farmer selling is limited. Traders are looking for signs that the White House and Congress are ready to compromise and find a solution to the budget problem. However, the Presidential press conference left viewers with the feeling a decision will not be made until the final hour. Bull spreading in corn and soybeans seems logical as near term supplies should provide underlining support. Chart resistance in Dec corn is 7.32 which was old support. The 7.05 area should now be support. January soybeans are in a range between 14.00 and 14.50 currently. Wheat has fallen to long term support and has positive fundamentals. Talk to your Allendale Representative for trading ideas. Livestock, historically, is volatile as we approach the Thanksgiving holiday. Moore Research has highlighted a few livestock spreads that should be considered. Choice beef was down .17 to 193.22 and select was down .29 to 174.90 on Wednesday. Pork cutout values were down 2.55 to 81.57. Join us at the
Allendale Ag Leaders Conference on Jan 25 and 26.
Markets as of 5:10 AM
Dec Corn +1 1/2
Jan Beans -6
Dec Wheat +4 1/4
Dec Cattle -.10
Dec Hogs -.40
Dec Dlr +.09
Dec S+P +4.50
Dec Crude -.11
Dec Gold -6.30
Need more:
Allendale Advanced Charts
Dec Lean Hogs is building a bull flag pattern in this latest bit of sideways trade between 80 and 81. In order to see this pattern activated, we would need to see a close above 81.35…Frank La Placa
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
The Chinese government has indicated it will buy corn and soybean from producers at prices higher than last year’s normal fall procurement. They will offer to buy corn from 2,100 to 2,140 yuan per tonne which is up 7%. Their soybean offered price will be 4,600. That would be up 15% from last year.
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