The Week Ahead: April 1-7, 2013

06:32AM Apr 01, 2013
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via a special arrangement with Informa Economics, Inc.

Employment report | Crop Progress | Export Sales for US pork | Pork cutout prices go 'real time'

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.

Congress is out on the second of lawmakers' two-week Easter recess, but some senators will be visible regarding what appears to be substantial progress in immigration reform talks.

It could be a big week on the economic front as the key Employment report comes out Friday morning. But other data comes before that key update arrives. Monday will bring the ISM manufacturing index report along with Construction Spending, with Factory Orders data on Tuesday and the private-sector jobs report from ADP on Wednesday. The ISM non-manufacturing index is also out Wednesday. Thursday has the jobless claims report with Employment on Friday along with International Trade and Consumer Credit. Leading up to the jobs data, markets will watch for any additional or new events relative to Cyprus or another euro zone country, along with any data or developments out of China. Several Federal Reserve speakers on tap this week may also be a source of market attention.

For agriculture, the week opens with the return of the weekly Crop Progress update, with the focus initially on the situation in winter wheat country and how the crop fared the winter. Traders will be comparing the data released Monday with that released in late-November as the winter wheat crop entered dormancy. The Thursday Weekly Export Sales again will get attention for the level of demand for U.S. corn, soybeans and wheat, particularly from China. And it will mark the first release of data on weekly export sales of U.S. pork to foreign destinations.

Mandatory wholesale pork cutout prices go “real time” today. USDA will publish cutouts based on both voluntarily reported data and mandatorily collected data for some time. However, at some point, USDA will cease publishing the voluntarily reported cutout. The Final Rule establishing Livestock Mandatory Reporting for wholesale pork became effective on Jan. 7, 2013. The rule requires pork processors to submit price and volume information for all pork sales transactions to USDA's Agricultural Marketing Service. Mandatory price reporting for boxed beef cuts and lamb cuts have been in place since 2001. Since Jan. 7, AMS has been releasing the pork data on a seven-day delay to facilitate the pork industry's transition from voluntary to mandatory pork reporting.

Key economic reports and events this week include:

Monday, April 1
Several global financial markets, including Germany and Italy, are closed for Easter Monday.
Economic reports: Selected Interest Rates (Federal Reserve) | PMI Mfg Index | ISM Non-Mfg Index | Construction Spending
USDA reports: Export inspections (AMS) | Crop Progress (NASS)

Tuesday, April 2
Federal Reserve:
Richmond Federal Reserve President Jeffery Lacker and Chicago Fed President Charles Evans discuss monetary policy.
President Obama meets Singaporean Prime Minister Lee Hsien Loong at the White House.
World Bank President Jim Yong Kim gives a speech on poverty.
Economic reports: ICSC-Goldman Store Sales | Factory Orders
USDA reports: Weekly Weather and Crop Bulletin (WAOB)

Wednesday, April 3
Central banks: The Bank of England holds a monetary-policy meeting, as does the Bank of Japan.
Federal Reserve: San Francisco Fed President John Williams gives a speech on the economy and monetary policy at a Town Hall Los Angeles event.
Energy reports: Weekly Petroleum Status Report (EIA) | Weekly ethanol plant production (EIA).
Economic reports: ADP Employment Report | ISM Non-Mfg Index | Weekly Mortgage Rates (Freddie Mac) | ICI weekly money market mutual fund data | Weekly mortgage applications (Labor Dept.) | MBA Purchase Applications
USDA reports: Broiler Hatchery (NASS) | National Dairy Products Sales Report (AMS) | Announcement of Class and Component Prices (AMS)

Thursday, April 4
Federal Reserve: Vice Chairwoman Janet Yellen speaks at the annual Sabew Spring Conference.
Asean financiers meet: The 17th Asean finance ministers’ meeting takes place in Brunei. The 10-member bloc has a population of about 600 million people, or 8.8 percent of the world’s population.
Transportation: Weekly Traffic of Major Railroads (Assn. Of American Railroads) | Grain Transportation Report (AMS).
Energy reports: Weekly US underground natural gas stocks (EIA)
Economic reports: Jobless Claims (Labor Dept.)
USDA reports: Export Sales (FAS) | NASS Dairy Products (NASS).

Friday, April 5
Biotech industry: Future Leaders in the Biotech Industry conference in New York.
Economic reports: Employment | International Trade | Consumer Credit
USDA reports: Peanut Prices (NASS) | Latest US Agricultural Trade Data (ERS)

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.