Large Traders Continue To Reduce Positions
May 14, 2012
Good Morning! Paul Georgy with early morning comments for May 14, 2012 at 5.10 am. Corn and soybeans futures are lower. Investor confidence is shattered due to fundamental and technical issues. The election results out of Germany are creating further concerns for the Euro. The political deadlock in Greece has EU officials weighing an exit plan. China cut their reserve rate but economic data suggests a slowing economy. The CFTC data released late Friday showed managed money reducing long positions in grains at CBOT by 38,726 contracts. The weather forecast for most of the Midwest is dry for the next 10 days which should give producers a chance to finish up planting of corn and many cases soybeans. The weekly progress report will be released to at 3:00 pm. Price of corn has slipped to levels where buyers have shown interest. Watch for new sales announcements at 8:00 am daily. The ICE exchange started trading corn and beans last night. The CBOT will begin trading extended hours next Sunday at 5:00 pm. The boxed beef value was lower on Friday, choice down .82 and select down .81. Pork cutout was .43 higher. We will be waiting for reports on retail clearance this past week. The meat markets will be taking their cue from the stock indices at 9:05 however lean hog futures did put in a solid performance on Friday. Check out the Allendale "Morning Coffee"
on YouTube at 8:00AM.
Markets as of 5:10 AM
Jly Corn -3
Jly Beans -25
Jly Wheat -2 1/4
Jun Cattle stdy-lwr
Jun Hogs stdy-lwr
Jun S&P -11.75
Jun Dlr +.34
May Crude -1.99
June Gold -20.90
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Friday’s outside range day has taken out the 4/18/12 support of $14.09 ½. If we do not see the July beans hold the trend line support at $13.88 ½ a priced stance is advised for producers.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Energy prices are falling. June crude oil has come off its March highs of 110.55 and is now priced at 95.60. This move has a bearish influence on corn and soyoil as those products derive a portion of their pricing from energy.
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.