More Excitement on the Horizon
Jun 08, 2012
Good Morning! Paul Georgy with early morning comments for June 8, 2012 at 5:10 am. Corn and soybean futures prices lower on profit taking after a few days of a sharp rally. Today, the dollar is sharply higher and the commodity basket is under pressure. There were so many factors that provided support yesterday. Will they be back coming in focus today? Weather is still the number one concern to the grain markets. Weather models add or subtract .25 to .50 of moisture and prices react. The GFS model increased rainfall Sunday into Tuesday in localized areas of Indiana and Illinois where totals were noted to 0.75 inches previously and now amounts were suggested to 1.50 inches. Key word is localized. We need rain throughout the Midwest. Reports and pictures of stressed corn and soybeans continue to come into our office from NE to OH. Macro influences have not gone away; Europe is wrapping up the week but still looking for answers to a very fragile economic situation. It is expected that markets will be supported on any setback as the weather forecast on Sunday afternoon will provide the direction of futures on Monday. Tuesday morning the USDA will give us new supply and demand data. Traders are expecting lower ending stocks for corn and soybeans. Stay tuned to the Allendale Research Center
for details. Cash cattle traded 1.00 higher in the south. Boxed beef was mixed with choice up .29 and select was down .46. Pork cutouts were down .70. Watch the "Morning Coffee"
at 8:00 am for more details.
Markets as of 5:10 AM
Jly Corn -5
Jly Beans -13 1/4
Jly Wheat -8 3/4
Jun Cattle -.20
Jun Hogs -.45
Jun S&P -3.00
Jun Dlr +.61
Jun Crude -2.15
June Gold -7.30
Here are just a few of the reports we follow and record historical data on:
Allendale Advanced Charts
Yesterday’s strong break above the downtrend line has established the $12.44 ¾ low as the key support level Nov Soybeans must continue to trade above to establish this level as a pivot low and resume the bull market. A close above the 5/10/12 high of $13.68 creates a scenario in which Nov Soybeans could attempt new highs above the $14.00 level that has capped this market for the last 10 months.
Get technical analysis for corn, beans, wheat, cattle, hogs, crude and dollar markets.
Nelson Notes from the desk of Rich Nelson
Overnight China’s central bank made a surprise 0.25% cut in short term interest rates. They also allowed commercial banks to make loans with interest rates on deposits higher than central bank rates. Both of these moves will encourage additional borrowing and are seen as stimulating for their economy. This is bullish to world commodities.
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.