Seed Consultants 4/24/2013 Market Closing Comments with Gary Wilhelmi

 

Financial
Dow loses 43 points at the bell, led by weak results from AT&T and P&G
The S&P and NASDAQ closed unchanged
WTI crude up $2.38 on tighter gas supplies
Gold gained $15 to $1430
Dollar index down 12 to 82.93
Sequestration effects more than airline delays, watch out for surprises in health expenses, more cuts to education, job training etc.

Livestock
June cattle and hogs held near their highs
Cash cattle are expected to trade at $126-127
Boxed beef firmed on improved volume
Pro cutout put about a buck Tuesday
Cash hogs were steady to higher
The prime mover in meat business is how much consumers have in the wallets

Grain and soybeans
The sun is out and a warm up is forecast and that means fieldwork will advance next week
Weekly export sales Thursday and US wheat is more competitively priced, US bean s face intensifying S American competition and corn is tapped out in old crop positions
116,000 tons of soybeans were sold to an unknown for 13/14
Soy meal supplies are tight
Decatur bean basis reflects short term demand
Ample global supplies and troubled economics restrain wheat sales

The destabilizing effect of high frequency traders was on display for all to see in Tuesday’s phony flash crash
Hacking such as occurred in the AP twitter account is a reoccurring threat, and our greed driven markets are not up to controlling them
Even though written in 2010 there is nothing in the Dodd-Frank legislation that addresses such malfeasance, so I am told.
Again we have ignored reality

 

10:11 update

Boxed trade fairly active at 179 loads
Cash hogs steady to $1 higher
May hogs at $7 premium limits nearby strength
Adequate global wheat crops and economic uncertainty curb wheat
Canadian wheat plantings 26.7 m aces versus 24.4 expected and canola 19.3 versus 20.3
Ukraine thought to have 80,000 tons of wheat at ports with 120,000 tons coming
116,000 tons of new crop beans to unknown
Chinese bird flu cases at 108 with 8 deaths, that does not seam like many, but fears of disease have decimated their chicken business
Gulf corn and soybeans steady

9:59 update

Equities mildly mixed
Grain and oilseeds stagnant
June cattle and hogs up about $1
Pork cutout up $.97
Boxed beef up $ .63 on choice

Market Opening Comment

Financial

Durable goods are not the best indicator but a 5.7% decline, does grab your attention
Stocks eased
Bonds firmed
Gold up $13
Dollar steady
Apple earnings not as bad as expected—watch the stock below $400
Ford sales good and Boeing did better than expected considering the problems with the 767
Italian yields at lowest point since Nov 2010
German business confidence index slips

Livestock
Cattle show lists larger
Cash offers are mostly at $128
Boxed beef up $ .63 choice and $.11 select
Loins are lead beef product
Kill unchanged
Features: $1.88 chicken breast and thighs, $2.48 London broil and $1.48 pork loin roast
Pork cutout up $ .97

Grains and soybeans
Little change over night
Warm and dry prospects weigh on new crops widening the spreads
Goldman Sachs lowers commodities outlook
Soybean imports are seen reduced
Ukraine sees large oilseed production
Funds light sellers
Reportable export sales of 100,000 tons plus, are the exception not the rule
Currently light showers in Midwest, but water levels high below areas where the flow is being held back for flood control purposes

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