7-19-12 AM Comments
Financial
USstocks called .4% higher
Crude back over $90 at $91.18
DAX up 1.3 %
FTSE up .3%
Spanish bonds a hard sell at 7% +
Dollar down 23 at 82.84
Gold up $18 at $1588
Morgan Stanley, Viacom and Nokia earnings today
77% of earnings have exceeded estimates
Bullish perception is that Fed will be induced to stimulate but previous efforts have fallen flat
Jobless claims expected at 365,000
Existing home sales seen at 4.65 million
Watch cooper as commodity measure of stimulus reality
Livestock
Feeders have fallen from $160 to $130 and live $130 to $113
Short covering brought meats up off of lows
Japan’s easing of beef import standards helps cattle but quantity is small
Choice/select spread narrows to $11
Cattle producers are losing about $240 per head and liquidating numbers
Pork cutout up $ 3.8 with loins plus $1.05, hams up $ .20 and bellies steady
Slaughter a little smaller than a week ago in both
Grain and soybeans
Nov. beans well over $16, Sept wheat tops $9.00 and Dec. corn near $8.00 at $7.86 over night
Rains in northernCorn Beltover night but too little too late in many corn growing areas
Temps back up to 90 today inChicago
Following the rains we will get a test of volatility
Corn carry headed for 1 billion bushel or less and beans well under 100 million
Talk of Chinese corn cancellations unconfirmed but they do cancel and replace routinely
Wheat worries zones inAustralia,ArgentinaandBlack Searegion
Weekly export sales not expected to be dramatic
Wheat good but corn and beans poor