Too much political biased talk, inaction and lack of foresight have brought a quartet of problems into the center of debate in Washington. The IRS, AP, Benghazi and Syria are a lot for a lame duck administration to spin. US-Russian tension mounts as Russia moves war ships into their Syrian base and we have military assets in the area.
Stocks powered by computer domination continued to press higher, but look tired. The EU has rung up six quarters of backward economic action. China has been struggling with its hybrid economy, as they are in new ground.
The dollar index went above its 84.10 resistance Friday, and that damage exports. Gold has under gone an extensive spring cleaning dropping well below $1400. The Russian GDP falls to 1.6%. The Federal Reserve is in its debate stage regarding a winding down of their bond buying program.
Corn planting may be up to 60% done, owing to our incredible ability to sock grain seeds in the ground. This action in corn may prove to be a standing eight count, and the crop may be saved by the technical expertise bell. Rains were coming in a mixed pattern going into this weekend. Our yield potential has more than doubled since I was merchandising grain around 1980.
Soybean planting is entering the galloping stage. S American record production is largely in the bin. Brazil approves a port modernization, which may serve to elongate strikes.
Wheat is globally fit, especially in Europe and into the Ukraine. Our, winter wheat, dryness problems are incorporated in the market, and now spring wheat and Canadian plantings is accelerating.
It is a long uncertain development period ahead for us, so don’t assume.
June cattle have been testing $120 support again this past week. June hogs finally humped up over $93.45 resistance Friday. Choice beef ran up to $208.50 in a string of new record highs. Pork has also been firm, but weekend features remain budgetary. Cattle on Feed were estimated at 96% total on feed, 112% placements and 103% marketing’s. Remember these numbers are one month old, so are often in the market.
Cattle processor margins are $160 in the black, but pork is not. Red meat exports have been lax and the strong dollar adds pressure. June hogs went into a power dive falling about $ 1.50 to $91.45 on the idea that pork has peaked. June cattle late is the session was down to $119.45.