Tuesday, September 8th, 2015 AgriVisor Morning MarketWatch

Tuesday, September 08, 2015
***** Corn is a nickel higher ahead of the morning break; soybeans up 7 to 8 1/2 cents; Chicago wheat higher by 6 to 7. *****

   Light rains come for Eastern Corn Belt early in the weekend: Totals were not significant, but Indiana and Ohio enjoyed some much needed rainfall. Scattered showers popped up throughout the Western Corn Belt late Sunday and Monday. The Midwest may stay wet to start out the new week, but the 6-10 day outlook is dry. Temperatures are expected to moderate in the coming days. 
   September crop report issued at the end of the week: USDA will update their World Agricultural Supply and Demand Estimates (WASDE) tables on Friday. Estimates from industry analysts will be published today. A key quarterly Grain Stocks report is due on September 30th. 
   Start of harvest in the Midwest dampens buyer enthusiasm: Grain futures may have limited upside in the near-term if early harvest results in the Corn Belt live up to the trade's optimistic expectations for output this year. Weather should allow good progress over the next few weeks. 
   Corn technicals still neutral in the short-run: Futures broke support from a minor low last week but have held above the key August 12 report day low. Resistance from the 10- and 20-day moving averages sits just overhead. Soybean futures are consolidating within the range opened on the volatile August 24 trading session. A bullish signal line crossover on the daily MACD could be achieved with strength in the November contract today. 
   Outside market conditions generally friendly to the grains overnight: First look has been given to the Chinese stock market lately, which on Tuesday was able to finish higher on an assist from the government. U.S. equity index futures are rallying sharply overnight. Dollar index futures are trading lower in a narrow range. 

***** Cattle futures look to open higher to trade in line with a generally firmer commodity space; hogs likely to hold steady/slightly firmer at the start. *****

   Cash cattle prices may have come down far enough to find some steady buying interest in the weeks ahead. Weather was favorable for the holiday weekend and likely supported robust retail demand. 
   Hog futures enjoy strong bullish technical momentum but are overbought from a short-run perspective. Pork's discount to beef still provides support at the retail level. Inventory purchases ahead of National Pork Month in October help the wholesale market.