Market Review 7/16/12

7-16-12 PM Comments



Dow off 49 points

S&P down 7 of 8 sessions

Crude climbs to $88.13

Dollar slips 25 to 83.10

Gold $1590 up $2

DAX up .1%

Retail sales down .5% in June was the main negative catalyst

Bernanke to speak of economics before congressional committees

Earnings mixed and can not lift stock values



October cattle fall $ .92 to $120.52 in range for test of $120 support

Boxed beef up $.21 after a $6 drop last week

Cattle feeders losing $200 per head

Feeder cattle off limit as corn races to new high

Extreme heat causing liquidation of herds

Heat also stymies hog marketing

Lead hogs trade below $90

Cash hogs steady to $2 lower

Pork cutout mixed with bellies down $.44

Watch slaughter levels this week as temperatures touch 100 degrees


Grain and soybeans

Continued crop deterioration

Corn 31% good to excellent from 40% last week

Beans 34% g-x from 40% last week

Corn silking 71% versus at 39% average with beans blooming 66% versus 42%

Top soil 77% short and sub soil 71%

Jail break to the upside with more coming

Ethanol margins fall

Feed usage limited

Brazil plans to produce 83 MT of soybeans surpassing the US for the first time, up 25% from last years weather plagued crop.

Argentine wheat slow sowing due to cold and dryness

At the present rate $8.00 will be in our rear view by weeks end in December corn

November soybeans closing in on $16.00

September wheat nears $9.00

I have never experienced such desperate rationing

Current temperatures running 93 or better across the Corn Belt with some 100’s on the way over the next 10 days


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