Morning MarketWatch: Soybeans starting the week with test of key technical resistance.

Monday, October 12, 2015
***** Corn futures steady at the morning break; soybeans up a nickel; Chicago wheat down 2 3/4.*****

   # Soybeans trade higher on Monday morning as corn and wheat futures remain on the defensive.  Traders will continue to digest last week’s Supply and Demand report as they sift through yield reports coming in from the field. 
   # Corn harvest is expected to be nearly 40 percent complete while the soybean crop should be more than half cut.  The weekly Crop Progress report will be moved to Tuesday because of today’s Columbus Day holiday.           
   # USDA’s cut to the soybean acreage estimates lends the market enough support to offset high yield expectations.  
   # Expectations are high for the next soybean crop in Brazil.  Plantings have faced some minor disruptions in Mato Grosso because of weather, but the trade still sees output potential near 100 million metric tons. 
   # Some of the big banks are changing their tune with recent tweaks to their grain price outlooks.  Goldman Sachs suggests that the grains have the least downside risk out of all commodities.       
   # Parts of the U.S. Delta region are facing extreme drought conditions.  Parts of the Great Plains remain dry as farmers plant winter wheat.  
   # The forecast is clear for the next several days before turning wet in the 8-14 day outlook window.  Warmer than average temperatures are expected hang around in the Corn Belt for the rest of the month.                  
   # Outside financial markets are mostly quiet overnight.  Stocks in China rallied on Monday as the Japanese market fell back.  The dollar continues lower as traders speculate that interest rates will not be raised by the Fed in 2015.    

***** Hog futures look to open steady/higher; cattle futures facing minor technical resistance at the start.  *****
   # Cattle futures may find slight support from a cash market that traded higher late on Friday afternoon.  Live sales were up $7-$10 and being done near $127.
   # The cash market lends hog futures support as the October contract approaches expiration this week.  Strong technical momentum is being sustained.