Home Market Market Watch Seed Consultants Market Watch Morning Comment with Gary Wilhelmi 12/5/2012

Seed Consultants Market Watch Morning Comment with Gary Wilhelmi 12/5/2012

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Financial
Administration plays brinksmanship with fiscal issue
Democrats and republicans fight among themselves as well as party versus party
No mention of entitlement reform and that’s the main culprit
ADP jobs estimate expected at 136,000 versus 158,000 in October
3Q productivity projected at +2.8 versus 1.9% earlier
ISM manufacturing index 53 down from 54.2 foreseen
October factory orders -.1% down from + 4.8
New Chinese stimulus proposals
DAX up .3% and so is CAC
Crude up $.11 at $88.50
Gold down $3 at $1696
Dollar up 18 at 79.79

Livestock
Cash call lower
Kansas offer at $126
Boxed beef steady choice and up $2 select
Feb cattle under 100 day moving average line with support at $129-130
Cattle breakeven projected in the red for 1Q
LA-Long Beach port strike settled and they are the prime beef export facilities
Seasonal swoon in pork demand Government reports delayed by technical problem
Front page features for mid holiday periods: $.78 whole fryers and 73% ground beef at $1.78, other beef offerings and 80% ground pork $2.29

Grain and soybeans
March steady at $7.52 with support at $7.40
Jan beans up 8 at $14.63 and March wheat 3 better at $8.59
Jan stocks next big report will measure domestic usage as ethanol production declines
S/D next Tuesday
Export sales tomorrow
Logistical delays in S America are a long term problem with record crops coming
Rustling of high priced hay a concern as feed supplies are tight



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