Home Market Market Watch Seed Consultants 6/14/2013 Market Watch with Gary Wilhelmi

Seed Consultants 6/14/2013 Market Watch with Gary Wilhelmi


Stocks have been battered about in a wild and crazy computer driven environment. Volatility is assured, as the Fed comes to its June meeting. Nothing may be resolved, but the table is crowded with ticklish issues. A tapering of the Fed stimulus bond buying program has been the spotlight concern. Don’t forget about inflation, it may not be the main event currently, but it’s warming up in the dressing room, and is the Fed’s prime long term mission. Monetary policy on a global basis is a mess, particularly in Asia and Europe.
Economic reports have been mixed and, therefore, not shape shifting. The NYSE is not on Wall Street, it is actually centered in Secaucus, New Jersey where the computers are housed. The same goes for the CME whose computers live in Naperville, Illinois, I understand.
December wheat was in peril early Friday trading at $7.00 or below a key support at $7.06, but as always the close is the only price that counts. December corn dropped below support at $5.40 and was still there early Friday. Support under November soybeans starts at $12.80. Most of our corn has gotten a good drink and is in excellent condition, while some is swamped. The advance forecast out through fifteen days is dry and that would be perfect for the completion of soybeans planting. The corn and soybean on support reflect that condition. There is more than enough wheat in the world, and demand for our product is insufficient. GMO worries in the PNW have largely passed, as indicated by Japan and South Korea’s attitude. Rumors of Chinese soybean cancellations are not unusual; in fact they adjusted purchases out of S America recently, and often must readjust for logistical and crush margin reasons. Argentine framers halt grain movement Saturday through Wednesday, due government policy complaints.
Cash cattle passed at $120 bids with offers at $124. Boxed beef has fallen to $201 or $10 as demand has been lackluster. Pricing for the Fourth of July is no big deal, as that is a hot dog and hamburger holiday. July hog futures were stymied by the $100 level, hogs and pork has shown signs of a seasonal topping. Father’s Day features were mostly beef, but all budgetary. The hog virus appears to have exhausted itself and rumors of Chinese pork buying must be confirmed in the weekly sales, but nothing yet.
The, not surprising revelation that Reuter’s has been selling University of Michigan consumer sentiment data to elite customers is despicable front running or insider trading.