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

Gary Wilhelmi 6/6/2012 PM Comment

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Financial

Dow up 286 points is the best gain of the year.

Talk of another stimulus effort motivates over sold markets

Fed regional economy review was mildly positive

Fund specs chase their tails higher

S&P 500 at 1315 with recent high at 1334

Bernanke testifies on the hill tomorrow

Previous twist, QE stimulus efforts have not worked so be on guard

ECB talks of plan forSpainbut banking problems are too extensive to just throw money at

Watch European markets, preUSopening, Thursday

 

Livestock

Cash cattle offers at $123-24

Boxed beef mixed with choice higher and select lower

Father’s Day meat features especially budgetary with no steak on the menu

Loin’s down $3.37

Pork has been losing out to select beef offerings

Hog slaughter weights 275# versus 270.7 a year ago

 

Grain and soybeans

Spec buyers stage a recovery

Electronic trade makes for highly volatile moves into orders up or down

Dollar off 37 points but still near the high and non motivational

Perfect weather with a warming trend over weekend with rains

31% of our beans are grown in the southern fringe states where top soil is 50-84% short so watch it

Export sales Thursday but recent reports have lacked drama

Short S American soybean crops may mean a 40% increase in US bean sales

Russian wheat exports seen lower next year but global supplies appear adequate

 

12:28 update
Coat tailing fund specs chase over sold equity markets higher
Dow up 214, DAX +2.1%, crude $1.58 higher and gold holds up $20
Talk of ECB support for Spanish bank bail out and hints of Fed QE3 this year sparked markets
Grains and oil seeds also rally
Oil world sees US soybean exports up 40% in 12/13 due to S American shortfall
Meats say aligned with their soft summer fundamentals

Financial
Stocks higher on ECB bail out talk, but success has not occurred
ECB leaves rates unchanged
27 nations European GDP steady
Aussie GDP up 1.3% doubles expectations
Chinese minute upticks in econ
DAX up 1.3%
Crude up $1.27 at $85.56
Gold $20 higher at $1637
Dollar index 82.60 22 lower
Dow call higher

Livestock
Less fed cattle numbers
Cash offers $123-24
Boxed beef steady at $195.50 choice
Pork cutout down $.21 with loin
S off $3.37, hams steady and bellies $2/13 lower
Slaughters 127,000 and 404,000
Fathers Day features on the front page $1.48 pork strips, $2.78 round steak and $8.98 walleye filets with an absence of steaks

Grain and soybeans
Grains 5-7 higher over night and lead beans 15 better
Dollar irrelevant just chopping near the high
Beat weather of the year with temps in the 70’s and low humidity
Weekend warm up and next week may be hotter and dryer
Corn 72% good to excellent and beans 65%
Winter wheat 20% cut
Export sales Thursday and have lacked drama of late
Outsides market wobbling with all worries active (Spain and Greece)