Home Market Market Watch Gary Wilhelmi 5/31/2012 PM Comment

Gary Wilhelmi 5/31/2012 PM Comment

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Financial

End of the month balancing

Dow wraps up worst month in 2 years off 6%

Crude oil down to $86.54 on sagging global demand

Dollar hovers near unchanged at its peak

Euro 1.236 has lost over 6% in month

Gold close to unchanged

IMF waffles onSpainbailout as they are short on cash and resolve

DAX closed down .3%

Livestock

June cattle up $1.45 following lead of boxed beef at its high $197+

June hogs up limit bouncing off its support and reacting to higher pork cutout

Weekend front page features:   $ 2.48 for 73% ground beef, spare ribs, boneless pork chops. 80% ground chuck, 85% ground turkey and beef short ribs

Cash cattle expected at $121 steady

Grain and soybeans

July beans fall to test support at $13.40

July wheat takes out $6.50

July corn off $.2 at $5.67 with support at $5.60

High dollar chokes exports

Rain fall less than expected but more is possible Saturday through Wednesday

Low volumes as speculators pull back from risk

Beware of volatility in thinly traded markets

Falling crude adds pressure to bean oil

Kansaswheat harvest mixed so far

Chinese state auctions limit soybean interest

Technical damage occurring in beans, wheat and corn

12:45 update

End of the month position squaring
July beans test support at $13.40
Dow off just 6 and was down about 100 points
Crude continues to grind lower off $1.53
DAX down .3%
Euro 1.2382 on the low
Higher beef and pork cuts rally meats
Chinese buying rape seed due to crop damage

10:33 update

Dow slips 69 points
GDP poor at 1.9%
Midwest manufacturing slows
Chinese stocks ease
Show lists shorted in cattle
Pork cutout positive but margins are still in the red
Palm oil odd 2.1%
Next weeks weather uncertain
Current rains lighter than expected
Chinese state auctions beans and that’s bearish
Kansas harvest mixed thus far
Technical damage done to wheat
Dollar down but means nothing as it remains just off its high
Funds shy away due to European economic concerns

Financial
Timid 5 point opening gain on Dow
DAX +.1% even after lowest German unemployment rate in twenty years at 6.7%
GDP just 1.9%
Unemployment expected to be steady at 8.1% with 150,000 new jobs
ADP 133,000 jobs versus 157,000 forecast
Foreclosures comprise 26% of home sales
Spain needs $100 b to bail out banks it does not have
Crude $87.21 off $ .61
Dollar eases off high down 16 at 82.86
Euro holds at 1.24 near low and off over 5% for month
Gold slightly higher

 

 

Livestock
A few trade at $118 with most offers easing to $122
Boxed beef near high at $197 up $1
Kill normal at 130,000 and 425,000
Pork cutout up $1.95 with loins $2.72 better and hams $4.61 higher
June and July are slow demand periods for beef
The hotter it gets the less we eat

Grain and soybeans
Funds in general are sellers in this risk aversion climate
Crop ratings reduced in corn but weather features showers presently and into next week
Russian wheat exports expected to maintain constant level
US harvest rolls on a record pace
Current Chinese bean stocks are adequate
It is not so much that we have fund selling it is more an absence of buying
Volume is low and that makes for volatility

Financial

End of the month balancing

Dow wraps up worst month in 2 years off 6%

Crude oil down to $86.54 on sagging global demand

Dollar hovers near unchanged at its peak

Euro 1.236 has lost over 6% in month

Gold close to unchanged

IMF waffles onSpainbailout as they are short on cash and resolve

DAX closed down .3%

Livestock

June cattle up $1.45 following lead of boxed beef at its high $197+

June hogs up limit bouncing off its support and reacting to higher pork cutout

Weekend front page features:   $ 2.48 for 73% ground beef, spare ribs, boneless pork chops. 80% ground chuck, 85% ground turkey and beef short ribs

Cash cattle expected at $121 steady

Grain and soybeans

July beans fall to test support at $13.40

July wheat takes out $6.50

July corn off $.2 at $5.67 with support at $5.60

High dollar chokes exports

Rain fall less than expected but more is possible Saturday through Wednesday

Low volumes as speculators pull back from risk

Beware of volatility in thinly traded markets

Falling crude adds pressure to bean oil

Kansaswheat harvest mixed so far

Chinese state auctions limit soybean interest

Technical damage occurring in beans, wheat and corn