At 10:51 Dec LC are 35 lower at 11870, November Feeder 14012 down 97, ehile Dec
corn is trading at 640 1/2 down 14 1/2. Noon beef saw choice, up 55 at 18865.
1410 was the latest feeder indedx. expect to see 14033 up 23 tonight.
Cash fed asking prices are starting at 122. with the board breaking, asking
prices will decline with it on hedged cattle.
11760 is the 1st weekly support area for Dec LC with 12050 resistance. We are
now in the tightest feed supplies of the fall. While supplies slowly increase,
demand should increase as well into early Dec. Weather will be the key from
early Dec. into early Jan. Our basis is slightly negative right now. Sell only
the strong rallies.
Grains Update October 31, 2011
by Darrell Holaday
It has been a liquidation day across the board in the commodity sector. A big
jump in the US dollar value has put the commodity sector on the defensive.
The liquidation has been accentuated today by the MF Global bankruptcy.
Customers that clear trades through MF Global are on liquidation only and that
long liquidation is adding to the downward momentum.
Forecasts of rain in the HRW areas are pressuring wheat. European and Ukraine
forecasts remain dry.
The US dollar strength is pressuring the energy sector and the MF Global
situation is probably hurting the oil sector more than most of the sectors. Of
course that is pressuring the grains sector.
Export inspections were generally neutral to a little bearish. Bearish in that
they were not numbers that sparked any buying interest in the lower trade.
At mid-day corn is down .11, soybeans down .17, and wheat is down .15.
THE INFORMATION AND OPINIONS CONTAINED HEREIN COMES FROM SOURCES BELIEVED TO
BE RELIABLE, BUT ARE NOT BE GUARANTEED AS TO ACCURACY OR COMPLETENESS. THE
RISK OF LOSS IN TRADING FUTURES AND/OR OPTIONS IS SUBSTANTIAL. EACH INVESTOR
MUST CONSIDER WHETHER THIS IS A SUITABLE INVESTMENT. WHEN TRADING FUTURES
AND/OR OPTIONS, IT IS POSSIBLE TO LOSE MORE THAN THE FULL VALUE OF YOUR
ACCOUNT. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.