Home Market Market Watch Gary Wilhelmi 6-20-12 PM Comment

Gary Wilhelmi 6-20-12 PM Comment

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Financial
Fed extends until the end of the year “Operation Twist” which shifts funds to long term bonds from short term
Other possible measures were hinted at if necessary but not for now.
Dow was off 49 points in late trade
Crude oil dropped $3 to near $81
DAX closed well ahead of Fed announcement
Next event will be the EU summit at months end
Watch for Supreme Court health ruling
Fed separately said that growth will be slow, unemployment higher and in inflation softer
Bernanke also said he hopes things get better in Europe and that does not very encouraging

Livestock
Cash cattle bids reported down to $114
It is long way to breakeven
Boxed beef steady
Lead features: $5.98 select rib eyes, $6.98 skinless chicken breasts (really high) and $2.99 80% ground chuck
Pork cutout up $10 in last week
$100 hogs are real limousines
Hog weights at 272.2# versus 274.4 last week and 168.2 a year ago

Grain and soybeans
Mixed trade
Some moderation in temperatures forecast
Northwestern corn looks good but southern areas of Corn Belt have had only one-half of normal rain
Some corn contracts are being sold back to elevator die to crop concerns
Dollar has been range bound so not much if an influence on exports
Rain into northern China and Canadian, Australian canola areas
Algeria bought 600,000 MT of French wheat
Expansion of bean plantings is coming in S. America attracted by price and cheaper costs of production versus grains