Grains pull back as seasonal pressures mount

Allendale Wrap-Up 10/2/2012

Corn: Bulls can certainly say that corn staying neutral through most of the day looks strong when all other grains are actively sold. Bears still appear to have more ammunition for the short-term, however. When an export is finally seen, the low carryout means this market deserves an active bounce, but until then the seasonals still point lower.  Watch that harvest progress, when it approaches closer to 70% complete, look for the seasonal pressure to ease…Ryan Ettner 

Soybeans: Weather in South America is looking better as both Brazil and Argentina have good rains in the forecast. A one to two inch rain is forecasted to fall over the next few days and another shot of one to two inch rain are on the way for the upcoming weekend. This moisture will do well to boost soil moisture levels before planting begins in earnest in Mid-October. With the weak action of the trade today and the poor looking chart the soy market looks like it could continue under pressure near term….Jim McCormick

Wheat:  The concern about a Russian wheat export ban seems to have subsided for the time being. We are not expecting many changes on the USDA supply and demand report on the Oct. 11. Having said that, continue to look for sideways trade and continued pressure if the corn market pulls back. Currently the wheat is 40% planted up from 25% last week…Cordon Sroka

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Cordon Sroka is a registered commodities brokerr at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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