August 5, 2015 AgriVisor Morning MarketWatch

Wednesday, August 05, 2015
***** Corn futures up 1/2 to 1 cent; soybeans up 10 to 12 1/4 cents at the break; Chicago wheat fractionally lower overnight. *****

   Estimates for the August crop report traded this week: One closely-watched brokerage house is calling corn and soybean yields 165 and 45 bushels per acre, respectively. Informa's numbers will be released today. Bloomberg and Reuters surveys should be published today and tomorrow.
   Weather outlook remains dry for the back half of August: Scattered showers could fall across parts of the Midwest into the end of the week to provide some moisture, which is needed by most. But, the National Weather Service's 6-10 and 8-14 day forecasts are hot and dry. 
   Technicals leaning bearish: Corn futures are not technically oversold yet, so the bears could still have a bit more room to work. The bulls are looking at what could be a potential consolidation phase, a base from which they could kick of a buying campaign. November soybean futures bouncing from their daily pivot and approaching resistance from the 100-day moving average. 
   Oil prices staging a moderate rebound: Futures are up overnight but there remains a lack of enthusiasm from buyers. Weak oil has led commodities lower since the downturn in prices began just more than a year ago. WTI contracts are technically oversold in the near-term. 
***** Livestock markets look to open with strength, but the bulls will have to work to sustain the recent rally. *****
   Hog futures have more than recovered from a rough start to the week. Strong cash markets are leading the way higher. The most-active October contract reached a new one-month high. Prices are working to establish support above the 50-day moving average but are overbought in the near-run.
   Live cattle futures are moving higher as traders expect demand to finish strong into the end of the summer. Beef prices are rebounding and provide some slight support to the board.