Monday, September 21, 2015 AgriVisor Afternoon Marketwatch

Monday, September 21, 2015
********** Corn futures closed 7-8 cents higher, soybeans 7 cents higher, and wheat 8-10 cent higher. 

# Wheat was the obvious leader with talk about dryness in southern Russia/Ukraine heading into planting again forcing hedge funds out of short positions.  There was a weekend story on one wire service talking about how hedge fund traders think the situation points to lower prices yet.  
# On the USDA daily system, Mexico was listed as buying 487,680 tons of corn.  240,000 tons of soybeans were sold to unknown, but assumed to be to China.  There’s talk China could buy as much as 5 mmt. of soybeans while their Premier is here next week. 
# Export inspections, 18.5 mln. bu. soybeans, 28.9 mln. bu. of corn, and 22.2 mln. bu. of wheat were about as expected.
# Harvest talk may be the bigger issue with the good weather on tap for the Midwest this week.  Longer range outlooks look promising, with the Midwest to be warm, and the only above normal precip in the Northern Plains.  The trade looked for corn to be 13% done and soy 5% done.  The USDA reported 10% and 7% respectively.  Winter wheat planting is 19% done, slightly behind normal.  The corn condition rating was unchanged at 68% g/e, but soybeans rose 2 points to 63% g/e.  Early yield talk has been somewhat promising, but it’s still early.
#Strength in crude oil rubbed off on soyoil, lifting that product 46 points into the close. 
A weather system is slated to bring rain into Brazil.  Producers in Mato Grosso have been waiting on rain to start planting early soybeans. 
# It’s said 4 Fed Reserve governors have indicated they are in favor of a rate rise.  The pulled interest rate instruments down and capped equity buying.  Crude oil turned higher on weekend reports the number of working oil rigs is declining.  The Dollar firmed on the interest rate talk.  The Brazilian Real dropped to another record low.

********** Lean hogs futures ended $0.35-$0.85 higher; live cattle futures ended $.67-$1.37 higher, with feeders $.62-$1.90 higher.  ***** 

# The bullish leaning COF report Friday diminished selling pressure.  Wholesale beef had a firmer tone, select cuts in particular.  Cash cattle trading was too thin to set a trend. 
# Lean hog futures strengthened with the pressure off cattle, but was underpinned by stronger live and wholesale cash markets.