Thur, September 24, 2015 AgriVisor Morning MarketWatch

Thursday, September 24, 2015
***** Corn futures down a few pennies overnight; soybeans taking on a weaker tone into the break; Chicago wheat off 3 1/2 to 4 cents. *****

# Grain futures trade quietly mixed in a very low-volume overnight session. Further weakness in U.S. equity index futures is serving as a general headwind for the broad commodity space. 
# Chances for rain are creeping back into the two-week forecast. The National Weather Service's 6-10 and 8-14 day outlooks have shifted from below normal to normal chances for precipitation in the Midwest. 
# Brazil's real currency has hit a record low against the dollar. Exchange rate advantages for Brazil and other competitors like Europe, Russia, and Ukraine have been a headwind for the U.S. grain export programs so far in the new marketing year. 
# Japanese policymakers have issued goals to improve economic growth and stem population decline. A stronger Japan would be beneficial to the U.S. agriculture industry, as the country remains a top buyer of our grains. 
# An announcement of soybean purchases agreed to by the visiting Chinese delegation should be made by early afternoon today. Traders are expecting to see 2-3 million tons booked for the current crop and several more for the 2016/17 season. 
# Chicago wheat futures are backing off overnight after having enjoyed a 20-cent rally so far this week. Talk of dry conditions in Australia and Russia has sparked a short-covering spree, but the board is technically overbought for the short-run. 
# Soybean futures are lower on the week but have so far avoided a test of contract lows made earlier in the month. $8.53 on the November contract is a key point of support. 
# Stock traders will be listening for clues on the pending interest rate increase when the Federal Reserve Chair Janet Yellen speaks to Massachusetts college students today. 

***** Hog futures look to have a steady to firmer open; cattle futures likely to start with a recovery attempt after Wednesday's rout. *****

# Cattle futures will try to rebound after Wednesday's limit losses pulled the board into oversold territory. Growing beef inventories and sluggish wholesale demand work together to pressure the market. 
# Hog futures are expected to trade quietly toward Friday, when the quarterly Hogs and Pigs report will be released. Analysts expect the all-hogs inventory number to have grown by 3.6 percent on the year.