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Market Wrap up with Gary Wilhelmi

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Financial
Dow off 138 and was off about that much all session
Crude oil $79.38
Dollar up 16 at 82.44
Euro ends below 1.25
DAX index falls 2.1%
Gold up $18 at $1584
Global demand concerns hound crude and depress stocks
EU summit begins Thursday but no solutions are expected
EU has one currency but multiple fiscal policies and deep cultural divides dating back centuries
45% of S&P company business comes from the EU
A fair question is, what is a greater risk to US equities, is it Europe or our own dysfunctional economy?
I would say it is both compounded by poor leadership on either side of the Atlantic.
Napoleon once said that an emerging China will ultimately tip the balance of economies.

Grain and soybeans
Mother Nature trumped the economic problems in European and here at home.
A further deterioration in crop ratings was expected in the weekly report
Really hot and continually dry conditions were the breakout springboard today
December corn resistance is now at $6.10 and then 6.40, November beans set new highs on the daily, weekly and monthly charts, and July wheat has a spike high up to $7.20
Late planted beans in southern Illinois were put onto deeply dry ground coming out of a snow less winter and now things are much worse
The last such troubled year was in 1988 and if you want to go into the archives, the dust bowl
There has been some rain in dry Eastern Europe
Northern China has also beef short on moisture
Triple digit temperatures coming to the Chicago drawing area this Thursday and I have heard some 110 degree reports out west so watch out for prairie fires as well as the forest variety

Livestock
Hogs got hammered back 200 points off their highs late despite strong pork cutout at nearly $101
The financial markets behavior messed up the meats
Cattle are lurking near their support about $115 after cash fell $3 last week
COF negative with placements at 115% of a year ago
Dollar strength curbs exports of all kinds
The dog days of summer are coming early and that suppresses appetites