Sales Agreements Made By Chinese Delegation While In The Heartland C
CHUCK DANEHOWER RIPLEY, TENN.
orn, soybean and wheat prices are up while cotton prices are mixed for the week. The March U.S. Dol-
lar Index traded before the close at 79.51, up .28 for the week. The Dow Jones Industrial Average before the close was up 141 points for the week at 12,942. Crude Oil traded before the close at 102.98 a barrel, up 4.31 a bar- rel for the week. Prices are up this week despite strength of the Dollar which is buoyed by events in Europe. Internal production estimates for Argentina continue to downgrade their crop as the old adage small crops get smaller may also apply outside the U.S. Esti- mate are starting to drop below USDA’s latest projection which could have a positive effect on U.S. exports. A Chi- nese delegation made its way through the heartland of the U.S. with stops in Iowa and Memphis with sales agree- ments announced on soybeans and cotton. Details of whether these will be old or new crop sales are needed before the market gets real excited. Old crop sales would impact the market while new crop sales would be more sym- bolic. Corn: Nearby: March closed at $6.41 ¾ a
bushel, up 10 cents a bushel for the week. Support is at $6.29 with resist- ance at $6.52 a bushel. Technical indi- cators have changed to a strong buy bias. Weekly exports were above expec- tations at 42 million bushels (39.6 mil- lion bushels for the 2011/12 marketing year and 2.4 million bushels for 2012/13). Exports of 5.2 million bushels to South Korea were an- nounced today. There is some concern that there could be a slowdown in corn for ethanol as ethanol plants profit margins get squeezed. For corn in stor- age, I would use the 50 day moving av- erage price of $6.25 as a price stop. New Crop: September closed at $5.96
w more.
and hundreds
giant leap in seed ing blends of crop ATM
and Excalibre-SA™
the really big news per acre in corn, 3-5 er acre in wheat.
SabrEx for Corn m, com eting, Inc.
Contact your ABM Representative, call 877-617-2467 or visit
www.TreatYourCorn.com www.TreatYourBeans.com
TM Excalibre-SA and Graph-Ex SA February 24, 2012 / MidAmerica Farmer Grower • 3
¾ a bushel, up 12 ¼ cents a bushel since last Friday. Technical indicators have changed to a buy bias. Support is at $5.87 with resistance at $6.04 a bushel. I am currently 10 percent priced for 2012 production. I have con- cerns that with a potential corn acreage increase and trend line yields that
stocks will build and prices will be lower at harvest. Cotton: Nearby: March closed at 91.45 cents
per pound, up 0.84 cents since last week. Support is at 90.05 cents per pound with resistance at 93.97 cents per pound. Technical indicators have a sell bias. The Adjusted World Price for February 17 – February 23 is 79.56 cents per pound down 2.69 cents. All cotton weekly export sales were 173,200 bales (sales of 101,400 bales of upland cotton for 2011/12; sales of 65,200 bales of upland cotton for 2012/13 and sales of 6,600 bales of Pima cotton for 2011/12). Market reac- tion was muted to the announcement in Memphis of a $500 million cotton sales agreement with China. This amounts to around 1 million bales. I am currently at 80 percent priced for 2011 production and would be willing to hold the remainder for an additional rally. I would target the $1 to $1.05 range as a pricing point. New Crop: December cotton closed at
92.62 cents per pound, down 0.35 cents for the week. Support is at 91.38 cents per pound with resistance at 94.86 cents per pound. Technical indi- cators have changed to a sell bias. Loan equities have been quoted at 33 cents per pound. Keep in contact with your cotton buyer for current quotes on loan equities and pricing alternatives. Soybeans: Nearby: The March contract closed at
$12.67 ½ a bushel, up 38 ½ cents a bushel since last Friday. Support is at $12.48 with resistance at $12.82 a bushel. Technical indicators have a strong buy bias. Weekly exports were within expectations at 22.6 million bushels (16.1 million bushels for the 2011/12 marketing year and sales of 6.5 million bushels for 2012/13). Sales agreements with China for the pur- chase of 452 million bushels were signed this week. Most of this is con- sidered to be new crop and already fig- ured in. On the daily reporting system, sales of 6.4 million bushels for 2011/12 and 101 million bushels for 2012/13 to China were announced and not necessarily expected, hence prices up today. This could be some of an in- fluence of reduced production from South America. Producers who con-
tinue to hold stored soybeans should not let prices get away from them and at least use a $12.29 stop as a pricing point should prices drop back to that level. New Crop: November soybeans closed
today at $12.62 a bushel, up 22 ½ cents since last week. Support is at $12.46 with resistance at $12.74 a bushel. Technical indicators have a strong buy bias. I am currently priced 5 percent at $11.94. Use a $12.32 fu- tures stop as a pricing point should prices drop back to that level. If prices
HAVE TREATER
WILL TRAVEL Farmers and seed dealers seeking custom on-farm seed treatment services, look no further.
TH Equipment offers a full-line of seed treatments for cotton, rice, soybeans and wheat.
Call Brian Lewis
573-382-6975
or 888-895-7333 to discuss pricing and scheduling today!
move up, I would move my stop up. For chartists, the soybean chart below seems to indicate an inverted head and shoulders move. Prices are right at the neckline which would be bullish if a sustained breakout occurs. In this volatile market, the breakout may not last long. From a chart standpoint, it does bear watching. Wheat: Nearby: March futures contract closed at $6.44 a bushel, up 14 cents a
CONTINUED ON PAGE 5
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32