Home Market Market Watch Seed Consultants Marketwatch 10:43am Update with Gary Wilhelmi 9/14/2012

Seed Consultants Marketwatch 10:43am Update with Gary Wilhelmi 9/14/2012

SHARE

10:43 update

Dow up 80 and S&P 9 better in rally extension
Dec cattle are $3 over $127 cash
Weekly pork production is at record level
Margins are positive but supplies are voluminous
Argentina boosts corn exports 2.75 MT to 16.45 MT
Diving dollar supports exports
August NOPA crush poor at 124.8 m versus 128.7 expected
Australia remains dry

 

Financial
The Fed goes “all in” in a bold effort to stimulate the suffering economy buying $40b in mortgage backed securities, open ended, with review stipulations after two months
Congress again pushed back the government funding by six months, rather than facing the deep problems that plague us
Economics is called the inexact science as its mass of numbers can be doctored to meet any theory.
The fiscal cliff and government sequester is rapidly approaching, and we play partison politics
In hard fundamental news there are many reports this morning, retail sales, Inventories, industrial production, U of M consumer sentiment, personal income sand spending and consumer price inflation.
Crude oil has been over $100 as turmoil rages in the Mideast
Gold reacted sharply to the Fed decision, crude and current deterioration
The DAX closing post Fed announcement caught up with a 1.5% gain.
The euro is up over 1.30 as the dollar dives to 78.85
Major US equity indexes are now at five year highs

Livestock
Packers push short bought cattle up to $127 up $6 on the week
Boxed beef mixed and watching consumer reaction to rising beef prices when pork is so amply supplied
Watch for a cattle slaughter cut back
Kill Thursday was on par at 128,000
Pork cutout unchanged with loins off $1.03, hams up $4.64 and bellies down $2.93
Hog kill remains robust at 433,000

Grain and soybeans
Night markets firm 6 in corn, 10 in beans and wheat up 15
Rains have improved pastures in the west so watch the dry plains winter wheat area
Harvest is ahead of schedule
Central and northern Brazil is dry but just watch
Soybean 12-13 carry over is projected at a nine year low at 115 m
Chinese corn buying has receded, and watch week to week soybean activity as their economic problems are tightening purse strings
There is a lot of rationing valuation yet to done so be prepared for volatility?