Morning MarketWatch: Grain futures holding slight gains ahead of the break.

Thursday, October 01, 2015
***** Corn futures steady ahead of the morning break; soybeans up a few cents; Chicago wheat higher by a nickel. *****

   # Grains trade quietly mixed in the wake of Wednesday’s Grain Stocks report. Fresh news is scarce overnight.      
   # Traders are now looking ahead to the October 9th Supply and Demand update.  Yesterday’s quarterly Stocks numbers will make up the beginning stocks estimates for the 2015/16 balance sheet.  The report is also likely to include yield and acres adjustments.         
   # Meteorologists are tracking a hurricane that could bring some moisture to the Eastern Corn Belt late this weekend.  The two-week outlook is warm and wet for most of the Midwest.           
   # Brazilian growers are starting to run into slight troubles with soybean planting efforts.  The Mato Grosso region is dry while parts in the South are becoming too wet.     # The Indian monsoon season provided the country with 14 percent less rainfall than it normally does.  Dryness has also been a talked-about theme for Australia and the Black Sea region lately.  
   # Parts of the Southern Plains are starting to register as ‘Abnormally Dry’ on the U.S. drought monitor.  Dry weather is becoming a slight worry for a winter wheat crop that is now about one-third planted across the country.  
   # USDA’s revision to the 2014 soybean crop makes it so that the 2015 harvest could be a record.  The Grain Stocks report had last year’s soybean crop down to 3.927 billion bushels compared to the USDA’s September estimate for the 2015 crop of 3.935 billion.              
   # U.S. stock index futures are moderately higher overnight.  Initial jobless claims data will be reported this morning along with two important readings on manufacturing.  Tomorrow brings the monthly unemployment report.  

***** Hog futures look to open steady/weaker in a correction from overbought territory; cattle futures likely to stage a rebound effort after Wednesday’s limit-losses.  ***** 

   # October cattle futures made new contract lows on Wednesday as the cash market started up with sales that were $5-$6 lower on a live basis.  Heavy cattle coming to market continue to pressure prices.           
   # Hog futures continue higher as strong pork demand props up the market.  October 1st kicks off National Pork Month, when the meat will be heavily featured at the retail level.