Tuesday, September 1, 2015 AgriVisor Afternoon MarketWatch

Tuesday, September 01, 2015
***** Corn finishes weaker by 6 to 7 3/4 cents; soybeans drop 12 1/2 to 13 1/2; Chicago wheat manages gains of 3/4 to 1 1/2. *****

   A broad-based selloff gripped global markets on Tuesday as fears of Chinese economic troubles and a sharp U.S. equities correction took center stage. A disappointing reading for manufacturing activity in China refueled the bearishness that has hung over markets in recent weeks. 
   Chicago wheat futures were able to withstand much of the selling pressure that took hold of corn and soybeans. There was a slight renewal of optimism over the export program after the Monday morning export inspections report featured a very strong tally for last week's shipments. A falling dollar index helped support that improved export outlook. Technical buying also lent a hand. 
   Tuesday's dollar move did not help corn or soybeans. The U.S. dollar still remains weak against the currencies of our competitors. New-crop corn and soybean sales lag well behind last year's pace and are struggling as a result of unfavorable terms of trade. The big buyers, like China, are turning to South America for soybeans while other importers look to South America, the Black Sea region, and Europe for corn and wheat. 
   Corn futures have been making lower lows over the half a dozen sessions since last Monday's volatile trading day. That session's $3.65 1/2 intraday low, along with the August 12 report day low of $3.57 1/2, stand as key levels of technical support for the December contract. The $8.55 low notched in on August 24th for November soybeans is point to watch on the chart. Recent price action suggests new lows for Chicago wheat to be weak lows; not much follow through pressure has yet been observed. 
   All eyes now turn back to the Chinese stock market. There is talk that the Chinese government will want to do all it can to shore up confidence in the market before a World War II celebration that the country has scheduled for Thursday. Stocks and bonds in the U.S. will trade on action in international markets until investors have a look at Friday's unemployment report. Oil prices will take their cue from Wednesday's stocks report after a volatile several trading sessions. 

***** Hog end $0.10 to $0.65 lower; live cattle drop $1.97 to $2.175; feeders down $1.825 to $3.075. *****

   Outside market negativity weighed on the livestock sector just like it did the grains. Beef prices were steady as of midday while pork gained. Hogs enjoy much better technical support than do cattle futures.