Afternoon MarketWatch: Grains move higher behind the strength of soybeans.

Wednesday, October 21, 2015
***** Corn futures gain 2 to 3 1/2 cent to end near session highs; soybeans up 7 to 9 1/2; Chicago wheat higher by 2 3/4 to 3 1/2. *****
   # Soybeans were leading the way higher on Wednesday as nearby futures attempted to recover support from $9.  Corn spreads were active but prices traded tight ranges.  Chicago wheat moved higher but the front of the board could not reach $5.  
   # A few sales to China were reported this week, first a 132,000 ton soybean sale on Tuesday and now a 40,000 ton soyoil sale today.  
   # Brazil’s real currency was moving lower against the dollar as news broke of an attempt to impeach the country’s president.  
   # Weekly ethanol numbers were reported today.  Production was up fractionally on the week but runs 6 percent higher on the year.  Corn use was estimated at 99.9 million bushels, just slightly behind the 100.8 million needed per week to meet the current USDA target.   
   # Weekly export sales reports are becoming more and more important now that market focus shifts from harvest to demand.  Estimates for tomorrow morning’s report have corn sales near 22 million bushels, soybeans around 55 million, and wheat close to 15 million. 
   # Corn futures are rebounding after a probe below key support at $3.75.  The soybean chart is leaning more bullish as the November contract climbs back above $9 and the 20-day crosses over the 50-day.
   # Chinese purchases of DDG’s were up in September.  Import data showed bean purchases above 7 million tons and up nearly 50 percent on the year. 
   # Growers in the Southern Plains are waiting to see if the forecast for rain comes to fruition in the next 6-10 days.  The winter wheat crop is all but planted and will soon become desperate for moisture.  

***** Live cattle future end $0.32 lower to $0.40 higher; hogs were lower throughout the session before finding some strength late in the day. *****

   # Live cattle futures were fractionally mixed on Wednesday as buyers took a breather to wait for cash markets to develop.  Early bids seem to indicate that cash prices could gain for a third straight week.  
   # Hog futures corrected lower from what was short-run overbought territory.  Midday direct and wholesale prices were a touch firmer.