Wednesday, September 9th, 2015 AgriVisor Morning MarketWatch

Wednesday, September 09, 2015
***** Corn futures gain a penny overnight; soybeans up 3 3/4 cents across the curve; Chicago wheat up 3 to 3 3/4. *****

   Grains steady to firmer in a quiet overnight trade: Corn futures trade a 3 cent range while the range is 10 for soybeans and 7 for Chicago wheat. Outside market influence is mixed with global equities up, the dollar up, and energies down. 
   Traders largely ignoring the Crop Progress report: Analysts had called for a slight drop of one or two points in the condition ratings for corn and soybeans, but both of the combined good to excellent scores remained unchanged. At 68 percent, this year's good to excellent rating compares with last year's 74 percent. Beans at 63 percent compare with last year's 72 percent. 
   Pre-report surveys still have yields below USDA: Analysts polled by Bloomberg look for corn yield to average 166.5 bushels per acre with soybeans at 46.1. The USDA had yields at 168.8 and 46.9 in their August update. Normally, the USDA is seen as reluctant to make significant adjustments to production forecasts in the September WASDE.
   Funds turn net-short soybeans ahead of the September WASDE: The latest trader positions report had managed money moving short on soybeans in the order of 17,000 contracts, the first net-short that has been held since June. The large speculators are still bullish corn by a net advantage of over 75,000 contracts. 
   Stock market rallies in Japan, China spark another round of buying in the U.S.: The Nikkei in Japan jumped 7.7 percent after having a rough start to the week. The closely-watched Shanghai Composite in China was able to make gains of 2.3 percent. September may yet be another volatile month for world markets as it will include a meeting of Federal Reserve officials and the potential for a U.S. interest rate increase. 

***** Cattle futures likely to inch higher at the open in a test of overhead technical resistance; hogs look to rebound from Tuesday weakness. *****

   Buyers stepped into the cattle pit with conviction on Tuesday while reasoning that the board had been beaten up too badly to this point. Wholesale prices are seen holding up well enough to keep negotiated prices steady when the cash market develops later in the week. 
   Hog futures are taking pause after having enjoyed momentum from a bullish reversal out of August lows. The fundamentals still support a stronger board price outlook, with the potential for seasonal cash strength still ahead.