Friday, August 14, 2015 AgriVisor Afternoon Marketwatch

Friday, August 14, 2015
***** Corn finishes fractionally changed as soybeans drop 10 to 11 cents; Chicago wheat ends higher by 1 to 3 1/4. *****

   There was an alignment among the major weather models that confirmed the forecast's shift toward wetter weather for the second half of August. Producers are expecting a finishing rain late this weekend that could make their crops.
   Pro Farmer will hold their annual crop tour this week. Most are expecting tour results to show yields that do not quite reach what the USDA has penciled in. The burden will be on crop tours like this if the trade is to prove that the USDA analysts are high on their latest yield estimates. 
   The National Oilseed Processors Association (NOPA) will release their July crush figures on Monday. Pre-report estimates call for a number near 141.5 million bushels. Crush demand has again been phenomenal this year, leading the USDA to up their usage estimate by 20 million bushels to 1.86 billion. 
   Outside markets were relatively calm on Friday. Equities were able to rebound while the dollar held steady. Global financial markets are settling after the early week volatility caused by the Chinese currency devaluation. Some are waiting for the other shoe to drop in that they expect other Asian currencies to adjust lower. 

***** Hog futures climb $0.15 to $1.025; live cattle settle lower by $0.12 to $0.55 as feeders end down $1. *****

    Live cattle futures were mildly weaker to end the week. Retail demand continues to provide underlying support to the board. Market participants were talking about Tyson's decision to close an Iowa processor plant because of tight supplies. 
   Hogs finish off the week strong. Cash prices are holding up better than expected. The August contract's expiration leaves the board with a steep discount to the cash market, so futures are doing some of the work on convergence.