Home Market Market Watch Gary Wilhelmi 5/8/2012 PM Comment

Gary Wilhelmi 5/8/2012 PM Comment


Dow comes back from 200 point loss to close 76 lower
Crude oil also rallies off a $2 break
Gold ended close to $1600 support
DAX closing at 10:30 was down 2%
Watch early morning European trade
Greeks ability to pay interest is central theme

Cattle come back from 100 point loss to close $.42 lower
Boxed beef up $.86
Pork weak in ribs and loin’s
Demand poor in all meats
Grain and soybeans

Grains flatten out after short covering rally
Soybeans dropped through support at $14.40 closing at $14.36
Chinese demand is discounted at this point
Chinese corn rumor does not have staying power
Heavy outside market pressure hangs over grains and oilseeds
Corn basis remains strong on tight old crop stocks
S/D Thursday expected to show tight corn and bean stocks
Wheat prospects and left over’s appear adequate


10:58 update

Financial power dive on Greek debt dilemma and inability to pay interest on upcoming paper
Dow off 162
Crude oil down $1.93
Gold has fallen #
$36 to $1603
Dollar firm
China buys 165,000 tons of beans 60,000 old and q65, 000 of new with 40,000 to unknown thought to be China
Chinese also to rumor to be shopping for corn
Cattle off $.92 on uncertain cash
Pork cutout depresses hogs as demand is punk


Greek political gridlock incited new euro concerns
Greek debt payment looms with no money to pay interest
DAX off .9%
Dow called 70 lower
Crude down .55 at $97.39
Dollar up 26 at 79.87
Gold falls $25 to $1615
No US reports today
Dow opening tick off 49 points

Liquidation of meats ending?
June cattle $5-7 under cash
Choice boxes up $.19 with select down $1.43
Kill 125,000 normal as is hog at 413,000
Pork production up 5%
Chinese down or last fourteen weeks
Pork cutout off $.41 with loins down $.68 and hams $.25 lower
Lots turning toward wheat feed due to corn tightness

Grain and soybeans
Plantings: corn at 71%, beans at 24% and spring wheat 84%
Corn emergence 32% and soybeans 7%
Winter wheat condition 63% god to excellent
Thursday’s S/D tight nearby corn and 12-13 swells to near 2 b bushels, beans tight nearby and 12-13 up to around 250m bushels
I have heard corn plantings guesses up 600,000 and beans 700,000 as weather has cooperated
New Chinese corn purchase rumors
Corn basis explodes on current tightness
Soybeans still impaired by last week’s price reversal due to excessive spec longs