Home Market Market Watch Seed Consultants Market Watch 1/24/2013 Evening Comment with Gary Wilhelmi

Seed Consultants Market Watch 1/24/2013 Evening Comment with Gary Wilhelmi


S&P closes about unchanged after trading over 1500
NASDAQ falls 24 points as Apple dominated index responds to Apple’s 12% loss
Dow held tentatively on to a 46 point gain at a 5 year high.
Brent crude cycled up over $113 at the conclusion
Gold dropped by $19
The dollar index stayed home at 79.98
US PMI 56 up from 54 and European measures were also positive
The deferment of the debt ceiling crisis had no cache.

Cash cattle traded $3 lower in Texas and Kansas, but futures bottomed out and bounced on short covering, the weakest form of buying
Boxed beef is acting as drag on values
COF tomorrow afternoon: total seen at 95.6%, placements 104.1% and marketing’s 93.2%
April hogs held onto a $1.50 rally coming off the lows—again short covering
Resistance is at $90

Grain and soybeans
March beans sold off despite a 510,000 tons sale to China and 113,000 tons to an unknown
March wheat continued its retreat as export demand is absent
Feed wheat usage has picked up in the southern plains and the East Corn Belt
Argentine rains are good for soybeans but too late for some corn
Mato Grosso is 3% harvested with yields above average
Ethanol production was up 1% after a weal trend
Export sales will be out Friday
Early indications are that corn will be more profitable to plant this spring, but it is a long way to fruition

1:51 update

Stocks in a mixed wobbling pattern
Under tow in beef
Lower 4Q pork production
Pork cutout highest since December
French wheat leads in Mid East sales
Ethanol production up 1% has been tending down
Mato Grosso 3% harvested with better than average yields
Rains forecast for Argentina in next two weeks would be well timed

10:48 update

Dow up 69, NASDAQ down 7 and S&P at 1500 resistance
COF: total 95.6%, placements 104.1% and marketing’s 93.2%
Some Texas and Kansas cattle trade at $122 off $3
Cash hogs called steady
April hogs up $1
China buys 510,000 tons of soybeans and 113,000 were sold to an unknown
Chinese PMI at 2 year high is good for demand
Export sales Friday
Volume light uninspired

Morning Comment

Stocks mixed Dow up 45 and NASDAQ down 22 as Apple falls 11% on weak report
Jobless claims at 5 year low at 330,000
PMI expected to slip slightly from last at 54
Leading indicators called up .3%
Natural gas and crude inventories today
IMF projects lower global growth in 2013
WTI crude $95.83 up $.67
Brent crude $112.58 after trading over $113 yesterday
Dollar index 8-.02 up 9 and neutral
DAX up .3%

Cash cattle falls $3 to $122 with offers remaining at $126
Choice boxed $190 little change
COF Friday with larger placements expected
Russian threat to ban US beef and pork, but they don’t buy much
Slaughters 123,000 and 426,000
Pork cutout up $.27 with loins $.19 higher and hams up $.31 on light volume

Grain and soybeans
Light profit taking extended overnight
50% of Argentina gets rain but corn out put is seen shrinking
Ethanol production in decline trend
Positive crush margins boost Chinese soybean demand
Light fund trade as markets consolidate in a trading range
Corn profitability to exceed soybeans in 2013
Feed wheat demand noted in S plains and East Corn Belt
Stock markets at highs have little effect