Home Indiana Agriculture News Seed Consultants 5/3/2013 Weekly Market Column with Gary Wilhelmi

Seed Consultants 5/3/2013 Weekly Market Column with Gary Wilhelmi


A positive jobs report rammed the stock indexes up to new highs, at the open, with Dow at 15,000 up 160, S&P over 1600 up 18 and NADAQ 42 better at 3384. These were opening market levels
Unemployment fell to 7.5%, but labor force numbers reached a 35 year low
A lot of old fill in type jobs are just extinct
Service sector jobs are at a 9 month low as the sequester sets in.
Hours worked rise as employers extend current worker hours, rather than hiring new people
High frequency trading called illegal front running, and I agree as it distorts trade putting the emphasis on micro seconds of computer speed, rather than real analysis.
EC GDP is projected at just .4% growth
ECB rate cuts have not worked
ECBN rate at .5% has little run to increase stimulation
Draghi, talks of negative interest rates, but that is why people who have money have been moving it over here
WTI crude has moved back up to $95.56
The gas pump was never enticed to ease and is now up to near $4.00 around here.
In Chicago prices are well over $4.00
Gold leveled out at $1467
The dollar index sagged then firmed to 82.46, and that curbs exports
German DAX rallied 1.3% on employment data
More weather delays stall corn, after a few good catch up days.
There is still time to work with in corn and it’s is too early to talk a large move to soybeans planting. Maybe at this point, 500,000 to 1 million acres, which is minimal?
Snow is settling spring wheat plantings as it is complicating short term hogs movement in Iowa and Minnesota.
China cancelled 276,000 tons of old crop beans, but that is just normal repositioning
China also bought 1.1 MT of new beans
Southeast Kansas wheat is not as bad as feared, but overall the dry cold winter has taken its toll.
Resistance in June cattle is now at $128 and 131, at a sharp discount to cash
Boxed beef is within a dollar of its 203 high of $210.31
June hogs have resistance at about $95 and last at $92.90
Features are heavily slanted to cheaper cuts like $1.98 for 73% ground beef, and $1.38 for, grizzly looking pork steak
The record high equities are not influencing the meat counter
At the close: all indexes just off their highs, Crude oil up $1.44, Gold steady, dollar off 12, cattle down $2.00, hogs $ .50 lower, Corn off6 cents on December, soybeans up 15-17 cents and wheat 8 cents lower