Home Market Market Watch Gary Wilhelmi 6/7/2012 PM Comment

Gary Wilhelmi 6/7/2012 PM Comment

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Financial

Dow limps home 46 higher and S&P closes unchanged

Bernanke testimony holds no surprises as few financial arrows remain in the Fed’s quiver

Any further stimulus will require further review

ECB looking at options for a Spanish bank bail out but noting has worked there either

Gold got hammered down $43 and that indicates underlying concerns

Crude up early sagged back to close at $83.94

 

Livestock

Cattle expected to cash out at steady money

Boxed beef mixed

Rise in boxes has squeezed retail margins

No local steak features for Father’s Day

Pork cutout was $1.75 better with loins up $3.10

Beef exports just fair at 18,100 tons

Lead contract cattle closed up over 100 points

 

Grain and soybeans

Financial slumped after agricultural close at1:15

The southern one-third of Illinois,Iowa and Missouriare short of top soil moisture and the delta region is worse.

Monday rains appear to be less then previously forecast so watch it

Weekly export sales were weak in all categories

S/D next week expected to show about a 20 million bushel reduction in wheat, corn and soybeans old crop carry over

Parts of China hot and dry (North)

Almost totally speculative electronic trade comprises about 92% of CME volume

Big computer driven funds dominate the NYSE as well; just watch the absence of people in shots of the trading floor.

 

 

12:39 update

 

Bernanke says nothings expected as he has few arrows left in his quiver

Dow holding up 94

Crude dips to downside

Gold pounded down $43 as there remain deep economic problems

S&P resistance at 1334 with a 1329 high

S/D next week expected to show about 20 m bushels reduction in wheat, corn and soybean old cop carry over

Russian wheat seen down 4-6 MT and China 2-3 MT

Watch dryness in China (North)

 

10:35  update

 

Dow up 104 earlier 199 was in error

Gold falls $28 to $1606

Crude up $.98 at $86

Tread lightly as speculators are in control

 

Financial

Talk of US stimulus and of ECB recapitalization of Spanish banks sets an s speculative fire under equities.

Dow up 199 early

DAXZ 4% better

China cuts rates

Bernanke testifies before congressional committees

Over sold markets stage spec recovery

Dollar down 46 at 81.92

Gold steady

Crude up to $85.46

 

Livestock

Cash $118b -$124 a

Boxed beef mixed with choice off $1

Rising boxed prices have cut retail margins

No local steak features for holiday weekend

Pork cutout up $1.75 with loin’s $3.10 higher, hams $.77 and bellies $4.88 better

Kills 127,000 and 407,000

 

Grain and soybeans

Spec surge extended over night

Beans very choppy

Weekly exports on light side in all

Current weather perfect with a warming coming on the weekend

Rains at top of week have been downgraded

Southern growing area dry

Highly volatile trade so beware