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The Allendale Wake-Up Call

RSS By: Paul Georgy,

Paul Georgy serves as president/CEO of Allendale, Inc., a worldwide agricultural advisory and research firm that provides agricultural commodity price research and risk management alternatives for producers, major food companies, international corporations, foreign governments, and major news vendors.

Traders Liquidate on Uncertainty

Dec 05, 2012


Good Morning! Paul Georgy with early morning comments for December 5, 2012 at 5:10 am. Grain futures are higher in light overnight trade. Trading volume slows as traders reduce positions in face of Washington bickering over tax increases and reduction in entitlement payments. The Commodity Index had the largest decline since early September on Tuesday. Funds were net sellers of corn and wheat and small buyers of soybeans yesterday. Supplies of US corn are a concern to livestock producers as 1st quarter 2013 breakevens are in the red. However, it appears on setbacks, end-users are willing to lock in prices. Export and ethanol demand have shown declines greater than USDA has forecast. Concern over South American production is supporting soybeans this morning. They will have a crop in 2013 but the logistics of moving a large crop maybe the greater problem. Headlines will be the driver of commodity prices in the next few weeks as trade looks for export demand news or confidence a decision can be made in Washington. Weekly export sales tomorrow morning and USDA monthly Supply and Demand next Tuesday are on traders’ minds. Cattle futures closed below the 100 day moving average on Tuesday on fund selling. Show lists were larger this week and cash trade is expected to be lower. Boxed beef was mixed with choice down .27 and select up 1.93. Pork cutout value was up .23 on Tuesday. Seasonal patterns in hogs suggest lower trending markets through year end. Stay tuned to Allendale Advisory Report to get the full story. Get all the price outlooks for 2013 at the Allendale Ag Leaders Conference on January 25 and 26, 2013. Reserve your seat TODAY
Markets as of 5:10 AM
Dec Corn    +2 3/4
Jan Beans   +8 1/2
Dec Wheat   +1 3/4
Dec Cattle +.07
Dec Hogs    -.22
Dec Dlr     +.10
Dec S+P     +3.25
Jan Crude   +.09
Dec Gold    +7.90



This material has been prepared by a sales or trading employee or agent of Allendale Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Allendale Inc.’s Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions. DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Allendale Inc. believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.


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