Home Market Market Watch Gary Wilhelmi 5/18/2012 Update 1

Gary Wilhelmi 5/18/2012 Update 1

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11:37 update

NASDAQ steady awaiting the Facebook IPO
S&P 1307 up 2
Dow up 42
DAX slips to .34% loss at close
China to sell 600,000 tons of soy out of reserves next week
Argentine soybean production cut to 41.5 MT from 42.9 MT
Argentine wheat plantings forecast down 14%
Pal oil short covering at weeks end but still focused on troubled Europe
Cattle and hogs at mid range

 

Financial
As a stockbroker in the 1960’s I participated in several initial public offerings, but never have I seen such hype as that surrounding this Face book deal. The price will be about $38 and trade on the NASDAQ will begin at 10 AM CDT. There is a chance that the IPO prices will be the high for a while.
16 Spanish banks were down graded casting more of a pall on troubled Europe
The debris from the EU trashing will wash up on our shores
Early the S&P was up 7 at 1307 and the Dow 62 better
Crude oil $.26 higher at $92.82
Gold $14 at $1589
Dollar index little changed at 81.50 with the years high at 81.78
DAX index up.1% after a .9% loss
Asian markets were sharply lower over night
NATO meeting in Chicago and G 10 at Camp David will likely accomplish nothing
HP to lay off 25,000

Livestock
A few cattle traded steady up north
$119-b -122-125 offered
Trade may be pushed back behind today’s COF
Remember COF’s are one month old when they come out
On feed expected at 100%, placements 88% and marketing’s 98%
Light placements are bullish for the deferred contracts
Kill in cattle may top last weeks 638,000 and hogs may exceed last week as well
Pork cutout up $.75 with loin’s down $.11, hams steady and bellies up $2.93
Wheat running up on corn will reduce wheat feeding

Grain and soybeans
Technically oriented trade with July corn at $6.30 resistance, July beans upper boundary at $14.40-60 and July wheat surpassed $6.60
July corn has rallied 60 cents since Monday
Speculative invasion after they were chased out previously
2-2.5 million more bean acres projected by private source could come true
Dryness an issue in the Western Plains, southern Midwest, Russian vicinity and Australia
NCGA calls for 30 day waiting period on proposed expansion of trading hours
Issues: report being put out during trading hours, problems in setting values for grain companies and others—I agree!!
Weather is perfect
The quandary in Europe continues and will not likely get much better