Home Market Market Watch Seed Consultants Market Watch 1-22-13 Evening Comments with Gary Wilhelmi

Seed Consultants Market Watch 1-22-13 Evening Comments with Gary Wilhelmi


Weak earnings by J&J and DuPont were offset by positive Google results
Dow up 62 at 13.712 a new 52 week high
S&P up 6 at 1491 or looking up at 1500
Dollar hung around off 14 and in the middle of its trading range
Brent crude at $111.89 with resistance at $113
Gold steady at $1690
The Dow breakout drew in extra speculative buying at the bell
Apple report this week and they may see the first revenue setback in 10 years

Oversold cattle rallied up $.80 boosted by Japan’s possible lowering of import standards on beef, but that’s not much business
Cash offered at $126
Boxed select beef firmed
Cash hogs were steady
Cold temps don’t mean much and the roads are clear

Grain and soybeans
March soybeans closed up $.22 at $14.51 with the next resistance at $14.90
Beans were bolstered by good export inspections and harvest stalling rains in the Mato Grosso
Dollar a bit lower but in range, only the long view is valuable in regards to the dollar
Corn exports were poor again
Wheat business above last week, profit dominated the wheat market
S Korea bought 50,000 tons of corn, but from S. America
Ethanol production is at a three year low and slipping
Chinese corn and rice imports are at record levels
The plains drought is unrelieved and that’s supportive to wheat

11:53 update

Dow docile
DuPont and J&J earnings slip
April cattle climb $1
Ethanol production at three year low
Wheat price wilts despite worsening drought
Chinese rice and corn imports at record high
Russia not lifting import duties to offset domestic tightness

9:17 update

Existing home sales off 1% puts stocks slightly lower
Bank of Japan asset proposal unnerves European stocks
Warm and dry ahead for S Brazil and Argentina
Drought trend hangs over the grain and soybeans with no relief in sight

 Morning Comment

Earnings mixed as are stock calls
Existing home sales today
Bank of Japan follows Fed in unlimited asset buying and yen is at its highest versus dollar since May of 2010
German investor confidence rises sharply
DAX, however off .7%
Crude oil WTI off $.11 at $96.13 and Brent crude $112.11 with resistance at $113
Dollar index 79.92 down 11
Dysfunction and dictatorial mandates resume in Washington
Apple may show profit slip

Cattle glut moderating?
Higher margins?
Cash offer at $126
Choice beef off $2.36 and select down $1.75
Slaughter 615,000 9000 lower and hog kill 2,227 down from 2, 284,000
Pork cutout 62 loads with carcass odd $.25, loin’s down $1, 82 and hams $.10 lower
Temps cold but roads clear

Grain and soybeans
March corn $7.32 with resistance at $7.50, March soybean $14.43 with resistance at $14.50 and March wheat $7.96 with resistance at $8.10
Spot light on S. America and weather looks good out 10 days
Export sales in grains will have to accelerate sharply to reach targets
Farm selling slowing equals firmer basis
Ethanol plant reduced demand with more coming
Open interest has risen slightly since the report
Consolidation pattern has been a feature