Monday, August 24, 2015 AgriVisor Morning Marketwatch

Monday, August 24, 2015
***** Corn futures down a dime overnight; soybeans drop 30; Chicago wheat down 6 to 9. *****

   Global markets selling off on macro-economy worries: Chinese stocks dropped hard on Monday, triggering a selloff in Europe and pressuring U.S. markets overnight. Commodities are broadly lower with soybeans performing the worst of the grains. 
   China at the center of global economy panic: After the country devalued its yuan on August 11th, traders have put a negative spin on their outlook for most markets. The currency move is a sign of economic trouble for China and has bearish implication for demand. 
   Short-run weather forecast mostly benign for crops: Light rains fell over the Western Corn Belt this weekend. Coverage was spotty out East. The two-week outlook remains dry, but temperatures are now leaning hotter for the first part of September. 
   Pro Farmer crop tour wraps up late last week: The final corn yield estimate was 164.3 bushels per acre. As expected, the estimate came in lighter than the USDA's current 168.8. The tour found good potential for the soybean crop and estimates yield at 46.5 bushels per acre versus the USDA's 46.9.
   Production fundamentals not likely to matter much today: Weather and yield estimates will come to guide the trade again soon, but today's action will be dictated by macro market sentiment. We will watch to see just how much liquidation will be featured in the grains as traders take money off the table and wait for the dust to settle. 

***** Hogs and cattle futures likely to start on the defensive as the agricultural commodities sell off overnight. *****

   The Cattle on Feed report was released Friday after the bell. Placements were lower than expected at 99 percent of the year-ago total. The total on-feed number was 103 percent and the marketings tally was 97 percent. The report would likely lend some slight support to prices if it were not for the broad selloff that is gripping the commodity market.
   Same can be said for hogs in that the fundamentals will likely provide little guidance today and prices will be pressured by the broad market selloff.