7-16-12 PM Comments
Financial
Dow off 49 points
S&P down 7 of 8 sessions
Crude climbs to $88.13
Dollar slips 25 to 83.10
Gold $1590 up $2
DAX up .1%
Retail sales down .5% in June was the main negative catalyst
Bernanke to speak of economics before congressional committees
Earnings mixed and can not lift stock values
Livestock
October cattle fall $ .92 to $120.52 in range for test of $120 support
Boxed beef up $.21 after a $6 drop last week
Cattle feeders losing $200 per head
Feeder cattle off limit as corn races to new high
Extreme heat causing liquidation of herds
Heat also stymies hog marketing
Lead hogs trade below $90
Cash hogs steady to $2 lower
Pork cutout mixed with bellies down $.44
Watch slaughter levels this week as temperatures touch 100 degrees
Grain and soybeans
Continued crop deterioration
Corn 31% good to excellent from 40% last week
Beans 34% g-x from 40% last week
Corn silking 71% versus at 39% average with beans blooming 66% versus 42%
Top soil 77% short and sub soil 71%
Jail break to the upside with more coming
Ethanol margins fall
Feed usage limited
Brazil plans to produce 83 MT of soybeans surpassing the US for the first time, up 25% from last years weather plagued crop.
Argentine wheat slow sowing due to cold and dryness
At the present rate $8.00 will be in our rear view by weeks end in December corn
November soybeans closing in on $16.00
September wheat nears $9.00
I have never experienced such desperate rationing
Current temperatures running 93 or better across the Corn Belt with some 100’s on the way over the next 10 days