Thursday, September 3, 2015 AgriVisor Afternoon Marketwatch

Thursday, September 03, 2015

***** Corn finished 5-6 lower; soybeans finished 4-5 lower, with Chi. wheat 12-16 lower. *****

  •   With the exception of soybeans and products export sales were disappointing.  Wheat sales, 277,500 tons, were at the low end of the range.  Corn sales, 441,000 tons, were below the low end of expectations.  Soybean sales, 1.473 mmt, were again above expectations.  Soymeal sales, 201,300 tons were equally as good.
  •   The USDA reported 883,400 tons of soybeans were sold to China and unknown destination on the daily system.  But, the last couple of years, soybean sales have been robust in September.
  •   France had the low offer on the overnight Egyptian tender, but they still bought 170,000 tons, all from Russia.  The U.S. is said to still be $25 over other origins.
  •   End user demand appears to be steady, but somewhat slow.  Value is good, but little rush to cover needs aggressively with harvest ready to start.
  •   Informa expects the USDA to forecast a 168.8 bu. yield next week, with a 13.688 bln. bu. crop, both close to USDA’s August numbers.  They expect the USDA to project a 47 bu. soybean yield, producing a 3.924 bln. bu. crop.  It’s said, they expect the final crop size to be slightly, but not significantly, smaller.
  •   Outside markets are having some impact, with the strength in the Dollar possibly adding to downward pressure.  But the outside markets were generally mixed with limited implications.

***** Lean hog futures ended $0.10 to $0.57 lower; live cattle futures were $0.20-$.40 higher; feeders ended $1.80 higher to $0.35 lower.  *****

  •   Weak beef demand/prices is weighing on live cattle bids, along with the short slaughter week ahead.  Cash was still trading was low as $140 Thursday.
  •   Wholesale pork is supporting hog prices, but the short slaughter week is undermining packer buying interest and cash hog prices.