Commodity Kick Start
CMEGroup Grain Futures Calls:
-March corn called 2 to 4 higher.
-March soybeans called 8 to 12 higher.
-March wheat called 2 to 4 higher.
March US dollar is down 15 at 80.44. March crude is up $.34 at $71.53. March Dow futures are up 17.
Economic Information:
-Though recent storms on the East Coast may increase heating oil use, some energy economists suggest a net decline in energy demand. Clogged roads will inhibit transportation.
-The trade is still concerned about EU government debt.
-This Thursday’s weekly unemployment claims report is expected to decline by 15,000 to 465,000.
-On Friday, it was shown unemployment fell from 10.0% to 9.7%.
-The Bank of England will release its quarterly inflation report on Wednesday. They are expected to predict higher consumer prices and also cut their estimate of 2010 economic growth.
-Last week the Bank of England did not extend its easing program.
-Iran’s president ordered his energy agency to step up uranium production. This flies directly in the face of western nation’s diplomatic efforts.
Weather:
-Two separate weather systems will hit the plains this week. One of those, the early week system, will run through the Midwest.
Grain Market Influences:
Tomorrow at 730 am USDA will release the monthly supply/demand adjustments.
Corn summary… This week’s range in crude oil was $8.54. For March corn it was 20 3/4 cents. The overriding message this week was concerns about economic growth and its effect on energy prices.
Soybean summary… Today threw a few things at us in the bean market. The 5 minute chart shows a lot of volatility. March beans started around 921 1/2 at 10 am then dropped to 909 before bouncing back all the way up to 920 3/4 an hour later. To say this market was all over the place is an understatement.
Per capita income in Bangladesh rose 15% in 2009. Palm oil usage (imports) rose 25%.
Wheat summary… Though US wheat prices have narrowed their premium to the competition, world traders are still suggesting there needs to be more to go. Wheat prices are still being underpinned by concerns there is too much old crop.
Russia indicated it will offer a $164 million subsidy for grain exports.
The U.N. purchased 63,000 tonnes of wheat for donation to Ethiopia and 6,400 tonnes of wheat for North Korea.
Japan seeks 105,000 tonnes of wheat. Of that amount 65,000 tonnes will be sourced from the US while the remainder will be split among Canada and Australia.
Iraq purchased 400,000 tonnes of Canadian wheat overnight.
Livestock Comments:
-Wholesale beef closes down $.81 for choice and down $.64 for select.
-Pork carcass cutout closes down $.03.
-Cash hogs are called steady.
Livestock Futures:
April Lean Hogs are called 10 to 20 higher.
----Chart support 65.25 and resistance 68.00.
April Live Cattle futures called 10 to 20 lower.
----Chart support 88.75 and resistance 91.25.
March Feeder Cattle futures are called steady to 10.
----Chart support 97.20 and resistance 99.75.
Livestock Market Influences:
Lean hogs summary… Though futures did close lower today, this market did a very fair job of holding its ground. This morning’s shock that China would apply anti-dumping duties to US chicken was a blow. Between the Russian poultry problem, and now the Chinese, wholesale pork traders are spending as much time watching chicken prices as they do pork.
Live cattle summary… The surprising news for the day was the unemployment rate fell. Before this, the cattle market has been balanced between concerns for employment on the bear side and storms affecting cattle production on the bull side.
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