Home Market Market Watch Gary Wilhelmi 6/5/2012 PM Comment

Gary Wilhelmi 6/5/2012 PM Comment

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Financial

Quiet equities awaiting next big event inEurope

Spanish banks an endangered species

Greece approaches EU exit point

Greek election will not prove anything as consensus is unreachable

Greece has no economy upon which to base a recovery

Watch European markets early as they are cumulative indicators as opposed to gas bag analysis

That same view applies to our sick situation

Bernanke to testify before congress with not much to offer

 

Livestock

Cattle offers are at $124

Boxed beef up $.89 select and $ .33 choice

Select beef competes well with more expensive pork

Cash hogs called better

Fathers Day features expected to be typical but concentrated on select grade beef

 

Grain and soybeans

New crop corn and wheat got beat up

US corn sales off 30% losing to S American grain

Brazil new crop soybean sales up 28% thus far

Ukrainian grain exports off 45%

Watch shortage of drought resistant GMO corn seeds

Corn and soybean crop conditions good with beans 65% g-x and corn unchanged at 72%

Clear skies presently in the Midwest with a heat up into next week

Weekend rains were not as plentiful as hoped

Winter wheat 20% harvested

 

Financial

Spanish banks on brink of collapse

Greece closer to exiting EU

Garbled Greek elections 6/17

ISM service sector expected at 53.1 versus 53.5

G7 meeting inFrancein emergency session

Dow called lower

DAX off .8%

CAC up .7%

Dollar 25 higher at 82.81 near its high

Euro holds at depressed 1.2435

Gold up $6 at $1620

Crude oil $83.54 down $ .44

 

Livestock

Cattle show lists larger

Slaughter expected to rise–123,000 Monday

Cash offers at $124

Boxed beef steady on choice and $.50 better select with spread at a wide $12

Two good export weeks but imports have also risen

Select beef competitively priced versus pork

Pork cutout up $ .63 with loin’s $2.99 higher and hams off $ .23

Hog kill 408,000 a little light

 

Grain and soybeans

Financial European ogre haunts all markets

Corn rating 72% good to excellent versus 67% last year

Beans 65%

Illinois corn unchanged at 66% andIowaoff 2% at 85%

Weekly export inspections slightly better beans, light in corn and unchanged wheat

Chinabought 165,000 tons of 12/13 soybeans but that is routine

Clear shies in Midwest, weekend rains were less forecast and next week is called hotter and dryer

Watch Palmer drought Index for measures of Midwest

At the momentIllinoisandIowaare in decent condition

Ultra sensitive corn and bean markets are subject to excessive volatility