Tuesday August 25, 2015 AgriVisor Afternoon MarketWatch

Tuesday, August 25, 2015
***** Corn futures drop 3 1/4 to 3 3/4 cents; soybeans up 1 1/2 to 5; Chicago wheat lower by 6 1/4 to 8 1/2. *****

   The grains traded broadly higher overnight before corn and wheat futures broke lower at the open. Corn recovered some of the gains early in the session before drifting lower into the afternoon. Soybeans had a choppy trade but settled up near the middle of the day's 20 cent range. 
   Monday afternoon's Crop Progress report had little influence on Tuesday's grain trade. Condition ratings for corn and soybeans were left unchanged at 69 and 63 percent good or excellent, respectively. The production fundamentals are left largely on the back burner as traders digest various developments in outside markets. 
   A moderate rebound for the broad commodity space was made on Tuesday. Energies led the way, but oil prices were trading well of their session highs by early afternoon. Soft commodities were higher. A dollar bounce limited buying enthusiasm for commodities like corn and wheat. 
   U.S. stocks started higher but were hammered into the close. The market rallied at the open on news of a Chinese interest rate reduction. Coming off an ugly Monday, volatility remained high and the bulls were left defending a bearish selling campaign from the technical crowd. 

***** Hogs trade steady to $1.40 higher with relative strength in the front of the board; live cattle down $0.325 to $0.85 as feeders dip $0.175 to $0.325. *****

   There is strong buying interest in the hogs after a bullish technical reversal was made on Monday. Cash prices are holding strong against expectations for a seasonal dip. Pork's discount to beef continues to help out. 
   Action in the cash market is leaning negative for cattle futures. Boxed beef prices were moderately weaker on the day. The technicals lean negative too, but they do suggest the possibility for a short-term bounce out of oversold territory.