Tues, Sept 22, 2015 AgriVisor Afternoon Marketwatch

Tuesday, September 22, 2015
********** Corn futures closed 3-4 cents lower, soybeans 10-12 cents lower, and wheat 1-2 cents lower. 

# Good weather and active harvest are deterring buying interest in the grains.  Yield reports tend to be good in many spots, but harvest is not far enough along to get a sense of implications for crop sizes.
# Weakness in the equity sector and crude oil, along with Dollar strength helped keep a lid on grains in the absence of other specific news.
# Chinese Premier Jingping landed in the U.S. today.  It’s thought the Chinese will sign papers agreeing to buy 5-6 mmt. of soybeans, but those won’t all be specific purchase commitments.  It is thought 2 mmt. of the “buys” will come for the current crop.  Signings are expected Thursday.
# The increase in the good/excellent rating for soybeans may have been the biggest negative, but harvest(7%) was a little further along as well.  
# Winter wheat planting was a little slower than expected, 19%.  Rains may slow the pace in the Great Plains.  And low prices and quality issues are expected to deter soft red planting in the Corn Belt.
# The Brazilian Real fell to another new low, prompting more producer new-crop sales.  It’s thought they have 25-30% of the crop priced.  Planting has started in Paraguay.  It’s ready to start in northern areas of Brazil, with producers waiting on late week rains to begin.
# In Russia, it’s said the Economic Ministry is blocking a change to their export tax.  Agr. interests are still pleading their case.  If it doesn’t change, it may help shore up cash prices in the world.
# Equity traders point to commodities as the key to weakness, with commodity traders pointing back.  Persistent talk about the softness in the Chines economy is at play.  The Volkswagen problem, and news from the pharmaceutical sector are playing a part in the decline.  The Fed decision not to raise rates has left the feeling they have little confidence in world economies.

********** Lean hogs futures ended $0.62 lower-$0.10 higher; live cattle futures ended $1.37-$1.60 lower, with feeders $.97 higher-$1.52 lower.  ***** 

# Emotions emanating from the decline in the equity market helped keep cattle prices under pressure.  Heavy slaughter weights are adding to the mix.  The afternoon Cold Storage Report was seen a little negative hinting of soft export demand in August.
# Lean hog futures had a mixed trade with wholesale pork and live hog prices holding firm.  Wholesale demand for National Pork Month is helping support prices.  On Friday, the USDA will release a quarterly hog report.