Friday, August 7, 2015 AgriVisor Morning Marketwatch

Friday, August 07, 2015
***** Corn fractionally mixed at the break; soybeans up 1 1/2 to 2 3/4 cents; Chicago wheat higher by 1 to 2. *****

   Grains taking on a firmer tone overnight: It has been mostly sideways for corn and soybeans this week. Chances for weekend rains balance out the forecast for a hotter, drier back half of August. The market is mostly quiet because traders await guidance from next week's report. 
   Today's trade all about outside markets: The monthly unemployment report could cause the type of volatility that spills over across all financial markets. Traders will use the numbers to fine tune their expectations for interest rates.
   Delta and Mid-South states enjoy rainfall overnight: Rains were locally heavier in Southeastern Missouri and the northern half of Arkansas. Parts of Southern Illinois and Indiana had received up to two inches on Thursday morning. Scattered showers are in the Midwest forecast for Saturday night and Sunday. 
   Weather patterns posing some crop risk abroad this week: Europe remains hot and dry, with heat spreading into the Black Sea region. Wheat in Argentina could still use a drink. West India is drying out slightly. Southwestern Australia is on the dry side. The Canadian Prairies are welcoming rainfall. 
   Wheat prices staging a rebound: Futures got a boost from a bullish export report on Thursday. At just more than 30 million bushels, sales were double the top end of the trade guess. There was a large and curious tally of sales booked for 'unknown destinations,' with little speculation on the actual buyers. 
   Unemployment numbers meet expectations: Nonfarm payrolls increased by 215,000 in July, exactly as anticipated, leaving the unemployment rate unchanged at 5.3 percent. Traders will now debate the report's implications for a possible September interest rate hike. 

***** Hogs look to hold technical support at the open; cattle likely to trade steady to firmer ahead of direction from the cash market. *****

   Hog futures were hammered on Thursday as cash prices plummeted. Direct hogs in the Corn Belt were nearly $3 lower on the day. Wholesale prices hold steady. 
   Cattle futures will wait for guidance from a cash trade that is expected to more fully develop later today. Packer bids are mostly steady with last week, suggesting that they might have room to improve when negotiations begin.