Afternoon MarketWatch: Trade expectations weigh on corn.

Tuesday, October 27, 2015
***** Corn futures finish lower by 3 to 4 1/2 cents; soybeans gain 6 1/4 to 6 3/4; Chicago wheat finishes fractionally mixed.   ***** 

   # It was Turnaround Tuesday for the grains corn giving up all of Monday’s gains and soybeans recovering most of the previous sessions losses.  Chicago wheat was steady on the day.     
   # Fund traders are actively covering wheat and soy shorts after having amassed bearish positions in the two ag commodities lately.    
   # World weather forecasts support the wheat market.  Soft red wheat in the Midwest is benefitting from the showers falling today, but hard wheat in the Plains could use a drink.  
   # Soy traders are talking weather, too.  Dry conditions in west-central Brazil have disrupted soybean planting efforts.  Growers there won’t be overly concerned unless dryness extends into mid-November.        
   # Soybean futures found some support today from higher palm oil markets.  Expectations for tighter palm output abroad are cause for some bullish enthusiasm.  
   # Crude oil prices were down sharply on Tuesday as inventories continue to build and demand remains sluggish.  News was also circulating about the U.S. government’s intention to draw from the strategic oil reserve starting in 2018.         
   # Grain basis is widening in the Western Corn Belt as elevators fill to capacity.  As of Sunday, Iowa, Nebraska, and Minnesota still have 27, 43, and 19 percent of their corn crops left to harvest, respectively.     
   # Corn futures were pressured by news that a cargo of Brazilian corn was headed to the U.S. Southeast.  Abundant surpluses and favorable currency terms allow the South American producer to compete with small corn crops in the Eastern U.S. Corn Belt.    
   # Stock markets trade quietly lower under the weight of weaker energy prices on Tuesday.  Traders are anxious for the Fed to wrap up this month’s Open Market Committee meeting, which will be held through Wednesday.    

***** Live cattle futures trade weaker by $0.10 to $1.00 but finish well off session lows; lean hogs drop $0.67 to $1.82. ***** 

   # Cattle futures were down hard early in the session but recovered as a better- and earlier-than-expected cash trade developed.  
   # Hog futures continued lower after Monday’s bearish technical move.  Hogs also faced pressure from the WHO study on the link between processed meat and cancer.