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Wednesday, August 26, 2015 AgriVisor Afternoon Marketwatch

 
Wednesday, August 26, 2015
***** Corn futures erase overnight gains to end lower by 3 3/4 cents; soybeans drop 12 to 16 1/2; Chicago wheat down 4 to 5 1/4. *****

   It was a down day for grains as futures traded low volume and without much fresh input. The country's shift towards harvest mode puts weight on row crop prices. An equity rally failed to provide any spillover support, probably because the dollar ran higher too.
   The weekly ethanol report did not lend any support to the corn market. Production remains strong but may be plateauing. Last week's ethanol output was down 1.4 percent on the week. Corn grind was tallied at 99.96 million bushels and runs above the 98.7 million bushels needed per week to meet the USDA target. 
   Chinese economy worries are still a strong headwind for the soybean market. Stocks in China dropped further on Wednesday despite the government's decision to reduce interest rates. A tumbling stock market and interest rate intervention couple with the surprise currency devaluation to signal potential trouble ahead for Chinese import demand.
   Exports are still the weak link for the wheat market. There has been plenty of activity in the global trade market lately, none of which involved much business for U.S. exporters. U.S. wheat is still uncompetitive on the world trade stage, especially against wheat from the likes of France, Russia, and Ukraine. 

***** Hogs drop $0.35 to $0.825 on Wednesday; live cattle finish fractionally lower as feeders end steady on the day. *****  

    The bulls took a breather after running hogs up sharply on Monday and Tuesday. The board had become near-term overbought and the most-active contracts faced technical resistance from the 100-day moving average. Cash prices did little to help out, with the carcass cut-out dropping $3.36 to $85.83. 
   Cattle futures were able to rebound from a strong early-session selloff, but still finished lower on the day. Wholesale prices were steady on the day and no guidance was given by the cash cattle market. 
 

  SYMBOL IN EVEN SQUARE