Home Indiana Agriculture News Seed Consultants 3/25/2013 Market Closing Comment with Gary Wilhelmi

Seed Consultants 3/25/2013 Market Closing Comment with Gary Wilhelmi

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Financial
Dow ends off 64
The Dutch finance minister first said that the situation in Cyprus could be a template for other struggling European nations, and then backed off that a bit but in the end the markets finished lower.
S&P closed down 6 at 1551 and NASDFAQ fell 10 to 3241
The Dow hits a new all time high before pulling back
The all time high on the S&P is 1565
WTI crude up $.85
Gold strangely quiet at $1603 down $4
Dollar index up 49 at 82.85
The US remains troubled but our banks are in better shape then those in Europe, so the dollar firms

Livestock
Smaller feed lot placements at 86% could not be translated into cattle market strength
Boxed beef need to do better coming into this week off $1.55 on choice
Short covering came to the hogs with June finishing up $1.77 at $91.50
Warmer temps are coming with Chicago up to 50 degrees by the weekend

Grain and soybeans
Just pennies worth of variation in wheat, corn and soybean
Two-thirds of the Corn Belt still has dryness issues
Present snow is just top dressing doing nothing for the depleted sub soil.
Prospective plantings Thursday at 11 AM along with the stocks report
The anticipation is for 97 m acres of corn and 78 m beans
5 b bushels of corn stocks and 940 m beans
Strong dollar inhibits exports
Export inspection total 60 m of grains and soybean whereas 100 m used to be the goal
Corn sales are less than one-half of a year ago
China booked 234,000 tons of new crop soybeans, but that is shy of their pattern

11:17 update

Equities slide down with Dow off 44 and DAX up just .2%
Euro 1.29 and floundering
Dollar index up 48 to 82.87
WTI crude up $1.22 Cattle level and hogs off $ .37 on June
Steady to s shade lower in grains and soybeans

Opening Comment

Financial
Cyprus makes one good bank and one broke hitting Russian accounts hard
This semi solution rallied stocks in Europe with the DAX up 1.2% and CAC plus .9%, but the longer view is no less troubling.
Russian retaliation is uncertain, but they have a history of revenge and look beyond their financial response
Senate finally passes budget but house version is quite different so the conference committee will be intense
WTI crude up $ .69 to $94.44 and has been on a plateau for weeks
Gold also in range off $13 to $1594
Dollar index 82.54 up 16

Livestock
Watch show lists
Cash offered at $129 with the last trade at $125
Boxed beef down $1.55 on choice and $ .96 select
COF as expected on total and marketing’s at 93% with placements light at 86%
Kill 601,000 off 5000 with hogs 2.176,000 down 23,000
Both cattle and hogs on their lows could see short covering but not triggered by spring weather as snow moved up Ohio River Valley
Pork cutout 41 loads with carcass down $ .57 loins $2.26 lower and hams steady

Grain and soybeans
Quietly lower opening
Thursday at 11 AM the prospective plantings will be out with 97 m acres expected in corn and 78 m beans
Stock 5 b corn and 940 m beans
2013 stocks by one private guesser 2 b corn and 261 m beans, but that is a long way off
Corn longs increase 58,000, beans 39,000 and wheat short covering off 9,000
Winter hanging on, but warm up coming
Watch Iowa and Nebraska dryness