Thursday, September 10, 2015 AgriVisor Afternoon Marketwatch

Thursday, September 10, 2015

***** Corn settled 5 higher; soybeans 1-2 higher; Chicago wheat futures 5-6 higher. *****

  •    The key tomorrow lies with the USDA reports(see Closer Look).  The trade expects production to be revised down, but because of the crop development state when the data was collected are not certain.  And the s/d reports, for soybeans in particular will be closely scrutinized. 
  •    Export sales come in early morning.  The trade is looking for 1.0-1.5 mmt. for soybeans, 350-600,000 tons of corn, and 250-500,000 tons of wheat. 
  •    The weekly ethanol grind, 100 mln. bu. was slightly higher than the prior week, but remains seasonally slow.    
  •    On Bloomberg’s weekly survey, corn, soybean, and wheat traders still have a bearish bias.    
  •    A major commodity trading bank put out buy recommendations for corn and cotton. 
  •    Grain traders in Argentina raised their forecast of the Argentine corn crop slightly because of slightly more acreage.  A financing squeeze is said to be hurting soybean seed sales.
  •    The Climate Prediction Center is expecting the El Nino to gradually weaken through spring 2016.
  •    Outside markets were slightly supportive to the grains today, especially the softer Dollar and stronger crude oil.  Conflicting economic data is keeping analysts uncertain about Fed moves regarding monetary policy.

***** Lean hog futures ended $.02 higher-$.47 lower; cattle closed $.15-$.80 lower.  *****

  •    Wholesale beef prices slipped again.  Combined with the short slaughter week, it left cash and futures softer.
  •    Wholesale pork prices slipped, helping to keep cash hogs on the defensive, along with the short slaughter week.  Futures responded accordingly.