-10-12 AM Comments
The equity markets are expressing the hopes of a new stimulus plan and also the fear that it will not be effective
Dow off 23 and DAX steady
FOMC meeting this week will outline the strategy
Last Friday’s employment report was poor with just 96,000 jobs added, 41,000 taken off of last months estimate and unemployment at 8.1% down from 8.3%, but expressing the fact that more people are just giving up looking for work.
The equities are on their seasonal highs so any disappointment could send them tumbling
The mostly impersonal computer driven tirade tends to feed off its orders, so new highs could occur, but to sustain we need evidence of real improvement.
Weekend Chinese data negative with import demand off 2.8% versus a rise of 3.5% and August industrials production slowed to plus 8.9%.
Equities called lower on Chinese reports
Fed rates stuck at zero into 2015
Crude oil $96.32 off $.10
Gold $1730 down $5
Dollar hovers at 80.31 down 16 after sharp fall Friday
Southern cattle stuck with bids at $124 and offers at $126
Northern cattle traded some at $192 up $2
Boxed beef flat to lower Friday
Short kill week
Pork cutout down $.34, with loins off $2.34 and hams up $.31
Grain and soybeans
Markets flat coming into open
Crop report Wednesday with wide spread of estimates in corn from 9.8 b to 10.3 b and soybeans 2.52 b to 2.6 b.
Corn yields of less than 120 bpa seen by some and soybeans around 35 bpa
Fall like, summer like and some rain this week or OK
We are coming into the reports near the highs so beware
This will not be the final answer as it will take months to figure out real production and quality
A small uptick in wheat trade and we may do better into fall as black sea supplies dwindle.
Financial markets remain a haunting presence