Home Market Market Watch Seed Consultants Market Watch 2/20/2013 Evening Comment With Gary Wilhelmi

Seed Consultants Market Watch 2/20/2013 Evening Comment With Gary Wilhelmi

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Financial
The bloated geese got plucked today as the Dow fell 108, S&P 19 and NASDAQ got bush wacked for 49 points
Gold dropped $40 to end at $1563
Crude oil was over $2 lower in both WTI and Brent
The fed minutes from their last minute indicated a possible winding down of their stimulus efforts and that helped light the fuse
Additionally, there was a rumor of blow our selling coming out of a troubled hedge fund
These hedge funds are not all the best managed ventures, so such rumors have some credence.
There is a chance of a 10% correction in stocks and it has already occurred in gold
As crude tumbles on speculative departure, gas at the pump is seen rising to perhaps $5 in Chicago

Livestock
Short covering popped up late, but the problems with pork additives disturbing Chinese trade drove the meats to their lows testing support only found on the monthly charts
As the financial were over bought the meat markets are now over sold so keep your head down
Cash cattle are yet to be established and the $127 offering seam high
Cash hogs were off $.50-1.00
Wind has been added to the coming snow event that could total 12-14”
Demand may not be affected much but the transportation of animals will be for a few days

Grain and soybeans
March beans shied away from their $14.90-15.00 resistance
Corn and wheat firmed slightly off tests of the support
Oil World cut their estimate of Argentine beans to 49.6 Mt from 51.6 Mt but boosted Brazil to 81.8 MT from 81.3 MT
China bought 350,000 tons of UD wheat, 400,000 Australian and 100,000 Canadian
Egypt bought one cargo or 60,000 tons of US SRW
Heavy snow cover is welcome in parts of the HRW country and moisture in the NW Corn Belt is like money, in the potential yield bank
Texas wheat us rated 49% poor to very poor
Focus on soybean and wheat exports in Friday’s weekly report as China has come off of the lunar holiday
Chinese ports are said to be light on soybean supplies

2:05 update

Fed minutes indicate an earlier end to stimulus efforts and that served to pressure Gold down under $1600 and crude oil last $2.62 lower at $94.40
Silver and platinum were also hit

11:52 update

Dow slips 36 points
Cattle and hogs deepen dive on heavier volume due to Chinese question
Oil World cuts Argentine beans by 2 MT
China buys 350,000 tons of US wheat, 400,000 Australian and 100,000 from Canada
Egypt takes 60,000 tons of US SRW
Gulf wheat mixed and corn up 2 cents
Wheat market action lethargic
Texas wheat rated 49% poor to very poor
Moisture forecast for HRW and NW Corn Belt
Watch export sales on Friday where bean sales will be a key, and to a lesser extent wheat with corn remaining poor