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Gary Wilhelmi 6/4/2012 PM Comment

Financial

Limited new news so there was little movement today

Dow off 17

Crude at $84.14 up off test of $82

Gold $1517

Dollar eases back 34 at 82.55

DAX down 1.2%

Bernanke regular congressional economic appraisal this week

Fed meeting coming

ECB later this week

All and all just talk as nothing has worked thus far

 

Livestock

Cattle offered at $124 after trading at $121 last week

Boxed beef up $ .25

Beef exports have slowed as imports have increased

Cattle weights up 20#

Select beef competes well with pork after cutout rally

Cash hogs called steady to $1 lower

 

Grain and soybeans

Check out impact of assorted weekend rains in theCorn Beltas regards conditions

Perfect week in store with perhaps a hotter and dryer period to follow

Weekly export inspections a little better in bean, little in corn and the same as last week in wheat

Chinabought 165,000 tons of 12/13 soybeans

Dollar eases but not enough to stimulate exports

Wheat harvest rolling

Good Canadian wheat crop in prospects

Record Brazilian soybean exports in May

Brazilian producer’s aggressively buying seed and fertilizer for next years crop after suffering a drought this year

 

11:27  update

 

Factory orders below estimate at minus .6%

Mixed meats entering summer demand period

Hogs seasonal bounce with resistance at $93 on July

Boundaries in lead contracts: corn $5.50-55, beans $13.20 to $14 20 and wheat $6.00 to $6.40

Good Canadian wheat crop developing

Brazilbean exports hit record high in May

Brazilian producers buying seed and fertilizer aggressively for come back soybean crop

Beware the volatility!!!

 

10:07  update

 

Italian 10 year bond rate over 6% in danger zone

Dow slips 17 points

Corn and bean tend down

Wheat harvest rolling

Chinabuys 165,000 tons of 12/13 beans

9-13 day forecast hot and dry but that’s questionable

Gulf bids up 2-8 cents on corn and steady to 2 higher beans

 

Financial

Italian credit rating down graded

Earnings on S&P 500 expected to contract to 7.4% in 2Q from 10.1%

Fed and European Central bank meet Thursday

Talk of new QE3 program from Fed, but others have not worked

Close to full fledged capitulation in stocks

Bernanke to testify before congress regarding our economic prospects

Chinese non manufacturing sector slowest in a year with index at 55.2 from 56.1

Merkel rejects debt sharing

April Factory orders expected off .3% from down 1.9% in March

Dow projected to have minimal change

DAX off .6%

Crude down $.87 at $82.36 from high of $108

Gold off $6 at $1617

Dollar index 11 lower at 82.78

Euro at 1.2435 scrapping bottom with 1.20 possible short term

 

Livestock

Southern cattle traded at $121 withNebraskabeef up $1 at $194-95

Offers at $124 to start

May placements may be higher leveling year to year comparison

Beef priced more economically than pork

Choice beef $12 over select

Pork cutout up $.44 with loin’s $158 better and hams up $.83

 

Grain and soybeans

Financial a limited factor in today’s trade but all economic threats are on deck

Over night 11-12 higher in corn, 5 in beans and up 9 in nearby wheat

Weekend rains inMidwestwith a dry week ahead

Watch updates for crop improvement

Watch drought (Palmer) index for full measure

Dollar holding at high restricts exports

High volatility spooks specs and thins out volume making volatility worse

S American crop prospects are a secondary consideration for now

Eastern European dryness likely factored in and Russian wheat exports look adequate