DRY HEAT
Timothy Hughes | 602-859-4100 | thughes@pricegroup.com
11/11/11 General Comments: Man, these markets just seem to stay in flux. There are new leaders in Greece and Italy who will play ball on enforcing austerity measures. Will the European Central Bank become the buyers of last resort for sovereign debt Meanwhile, I don’t hear much talk about the November 23rd deadline for the “Super Committee”. They are supposed to have figured out where to cut Washington’s deficits by $1.2 trillion and avoid automatic across the board cuts. I don’t have much faith that they can agree on anything but their actions or inaction will likely result in more turmoil for the markets. The house and senate agriculture committees have been tasked with fast tracking the 2012 Farm Bill which isn’t set for it’s five year renewal until 9/30/2012. The USDA’s $300 billion Farm Bill budget is responsible for cutting $23 billion and $15 billion of that is set to come from subsidies. No agreement yet.
Corn : Farmers holding onto inventory, USDA yield cuts, export sales weak. Technical signals looking a little negative to me at the time I am writing. Farm Bill cuts I have been positive this market but now I will wait for a chart signal. A close below $6.30 or above $6.66.
Soybeans: Technicals are weak and a close below $11.52 should result in a move down to $11.00.
Cattle: Last Friday we had the rally above $125 in Dec. but the market failed to close above that level and we have been under pressure all week. As bullish as I have been, a close below $12.95 today would be a weekly reversal that should be taken seriously.
Treasuries & US $: Keep your powder dry. Between everything happening in Europe, here and even in Iran, I expect an opportunity to trade. Have a great weekend.
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