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Afternoon Marketwatch: Wet weather sinks grains.

 
Wednesday, October 28, 2015
***** Corn futures end 3 to 4 1/4 softer; soybeans down 7 to 9 3/4 cents; Chicago wheat drops 1 1/4 to 3 1/4.  ***** 

   # Grains traded broadly lower for the entire session with corn and soybeans finishing near the day’s lows.       
   # Weather was an overnight negative for prices as beneficial rains fell over much the U.S. 
   # Rain in Brazil added to the weather pressure.  Dry regions of the country, like Mato Grosso, were receiving much needed moisture and more rain is in the forecast.    
   # Late-day dollar action spells trouble for the grains as we enter the back half of the week.  The Fed meeting wrapped in a way that had traders pricing in higher chances of a December rate hike.          
   # Wednesday’s ethanol report was a touch negative for the market.  Production was down on the week with corn usage at 99.12 million bushels.  Relative to the USDA’s 2015/16 usage estimate of 5.25 billion bushels, the weekly target is 100.87 million bushels.    
   # Weekly export sales are out tomorrow morning.  Traders look for 15 million bushels of new corn commitments, 65 million soybeans, and 16 million wheat.               
   # New daily price limits will be instated next week, corn at 25 cents, soybeans 60, and wheat 35.       
   # Commodities outside of the grains performed well on Wednesday, led by sharp gains in oil and metals.      

***** Live cattle futures drop $0.10 to $0.72; live and feeder cattle contracts move up by their daily limits, $3 and $4.50, respectively. *****
 
   # Cattle futures jumped higher by the limit as expectations for the cash market and gains for boxed beef sparked some bullish enthusiasm.  
   # Hog futures continued lower behind weaker cash prices.  The board is due for a bounce after having reached into technically oversold territory.  
 

  SYMBOL IN EVEN SQUARE