Tuesday, September 22, 2015 AgriVisor Morning Marketwatch

Tuesday, September 22, 2015
***** Corn futures down 3 1/2 cents ahead of the morning break; soybeans down just more than a nickel; Chicago wheat lower by 4 3/4 to 5. *****

   Outside markets weigh on commodities overnight: It's back to risk-off as equity index futures trade sharply lower and energies give back Monday's gains. 
   Uncertainties over Chinese economy health continue to pop up: The Asian Development again cut its Chinese growth forecast, from 7 to 6.8 percent, saying the decline would hurt commodity exporters. 
   Corn harvest ramping up this week: Clear skies and warm temperatures will allow farmers to make headway in the harvesting the corn crop, which the USDA said yesterday is 10 percent cut compared to a five-year average of 15 percent. Soybeans are ahead of last year's pace and match the five-year average at 7 percent harvested. 
   Corn bulls look to capitalize on technical momentum: A bullish reversal was made on Monday, leaving December futures above support from the short-run moving averages but still below resistance from the 50- and 100-day lines. A bullish zero-line crossover on the daily MACD indicator is close to being made. 
   Ethanol prices continue higher: Robust gasoline demand and tighter inventories have supported a strong rally for ethanol prices in recent weeks. Production, and corn grind, should remain strong well into the fall months. 
   Chinese delegates visit the Midwest later this week: President Xi is in Seattle today to visit a Boeing plant and will stop in Iowa on Thursday. The delegation is expected to sign a purchase agreement for up to 3 million metric tons of soybeans. 

***** Hogs look open steady to lower as futures correct from being short-term overbought; cattle futures likely to have a better start but will face the headwind of weaker outside markets throughout the day. *****

   Cattle futures close higher in response to on-feed numbers: The lower-than-expected placements estimates gave cattle futures a boost on Monday. Heavy animals have placed fundamental pressure on the market, but an improved outlook for retail demand may lend support down the road. 
   Direct hogs trading higher to start the week: Traders are looking to see if the hog market will find support as we head into October's National Pork Month, when the meat will be heavily featured by retailers. Futures benefit from strong technical momentum after clearing the 100-day moving average on Monday.