Morning MarketWatch: Grains continue trading weather.

Tuesday, October 27, 2015
***** Corn futures down 1 to 1 1/2 cents; soybeans gain a nickel; Chicago wheat drops 1 to 3 ahead of the break.​ *****

   # News is limited overnight and grain futures are reversing moderately from the moves made on Monday.                          
   # Harvest progress numbers are not likely to provide much guidance for Tuesday’s trade.  They came in exactly as expected with corn 75 percent harvested and soybeans 87 percent cut.  
   # The first set of winter wheat condition ratings could help support board prices on Tuesday.  The crop is rated 47 percent good or excellent versus 59 percent at this time last year.  
   # U.S. crude futures are lower overnight as traders expect stocks to build for a fifth straight week.  Crude oil is already stored to near capacity.
   # Remnants of Hurricane Patricia pushed rain up through the Southeast on Monday, with some precipitation reaching the Eastern Corn Belt overnight.  The 6-10 day outlook still calls for near to below normal rain for the Southern Plains.     
   # Soybeans have started the week on the defensive because weather forecasts call for rain in Brazil’s dry Mato Grosso region this week.     
   # Soybean technicals are leaning negative now that the curve has surrendered support from $9 and the nearby contract has dipped below its 20-day moving average.  The corn chart looks friendlier, with December futures bouncing from last week’s test of $3.75.      
   # Outside markets are quiet overnight as financial traders wait for guidance from this week’s Federal Reserve meeting.  There is little chance that interest rates will be raised this month.  Also this week, third quarter GDP and personal income will be reported.     

​***** Livestock futures look to recover from Monday’s sell-off, but strength is likely limited.  ***** 

   # Cattle futures are on the defensive as traders weigh uncertainty over where cash prices are headed.  Beef prices are starting the week lower and add some negativity to the mix.          
   # The fundamental storyline has shifted bearish for hogs as traders factor in seasonal expectations and the technical influences have turned negative as nearby hogs lose support from the 100-day moving average.