Home Market Market Watch Market Wrap Up 6/27/2012 with Gary Wilhelmi

Market Wrap Up 6/27/2012 with Gary Wilhelmi


EU summit begins tomorrow with limited expectations
Dow up 92 points on 2 year high home sales and positive durable orders
DAX closed up 1.5%
Crude at $80.45 little changed as was the dollar index at 82.57 up 20
Citi Bank down grades retailers
Look to markets for interpretation not the flannel mouthed media

Heat suppresses appetites but is also reduces weights and that was the dominating factor in meats
Cash cattle offered at $118-119 in the south
Boxed beef choice up $.41
Features: NY strips at $6.99 select up from $4.99 a week ago
73% hamburger $1.58 and spare ribs $1.78
Pork cutout fell back to $99.46, but heat rallied the meats

Grain and soybeans
Present hot and dry pattern resembles sun spot activity in the 1930’s dust bowl
Profit taking shaved values with resistance up at $6.73 ½ on December corn and $14.43 ¼ on November soybeans
Financial markets poised for post summit instability
Plantings and Quarterly stocks pending
Stocks are the prime measure of domestic usage and prone for revisions watch out
Corn acres 96 million and beans 75.2
What ever the plantings Mother Nature is calling the play
Corn stocks could be as low as 3.17 billion the lowest level since 2004
Dollar near its high restrains exports
Drought area expanding watch Palmer Drought Index

Market Update 6/27/2012 10:18 ET with Gary Wilhelmi

Dec corn resistance at $6.73 ½
Nov beans at $14.43 ¼
Weekend forecast dry’s out
Canadian canola acres 21.2 million and wheat at 23.8 and both are as expected
Lead contracts at $1 discount to cash in cattle
Hogs at discount to cash

Market Outlook 6/27/2012 with Gary Wilhelmi

Mid week and see ahead of the EU summit beginning Thursday.
Such confabs have historically been solution starved
Spanish PM says time is running out as their economic down turn intensifies
Be on guard for gossip glitches
All market movement minimal
Italian bond rates rise again indicating the risk of ownership
Chinese stimulus talk but that’s cheap
EU leader says Fed is in the twilight zone where they fear to tread

$1.50 corn rally bombs feeder cattle
Cattle supplies are short but so is demand
Boxed beef firmed $1.50 and holds near the high
Packers reaping profits of about $75 while producers lose nearly $140 per head
Cattle kill up 3000 for the week and hogs are 7000 higher
Pork cutout is off $1.83 on carcass to $99.46 with loin’s $/17 lower and hams down
Weekend front page features: lowest quality hamburger (73%) at $1.58 and spare ribs at $1.78 with chicken wings $1.58

Grain and soybeans
The European situation is like a mine field and our home front environment is like wise hostile
December corn was last reported at $6.48 up $ .21, November beans $14.33 $.28 better and July wheat at $7.35 up $.6
December corn resistance is right here, November soybeans are off the chart and July wheat has blown through $7.20 with a round number target of $8.00
All markets have had break outs
It is hot and getting hotter with little rain fall in prospect
This pattern has been without all year
Patterns are hard to break
Basically the southern two-thirds of Illinois, most of Indiana, eastern Missouri and southeast Iowa are on the critical list
Watch the Palmer drought Index as a good long term measure of out current problem which is the worst since 1988
Mother Nature has trumped and then doubled down on the economic crisis but don’t forget about it
Plantings and Quarterly stock at end of week.
96 million cares of corn expected and 75.2 million of beans
Stocks: 3.67 billion corn, 619 million beans and 1.21 billion wheat
Keep your seat belt on and fasten your helmet