Afternoon MarketWatch: Solid export sales support corn and wheat.

Thursday, October 29, 2015
***** Corn futures gain 3 1/2 to 4 cents; soybeans down 2 1/2 to 3 1/4; Chicago wheat ends higher by 6 1/4 to 9.  ***** 

   # Another mixed session for the grains with corn following wheat higher and soybeans struggling.  The weekly export sales report gave traders guidance, as did world weather forecasts.  
   # Weekly exports sales were solid but unexciting. New corn commitments were better than expected at 28 million bushels but still fall well short of the USDA target pace.  Soybean sales were at the top end of expectations, as were wheat sales.   
   # 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 for growers there.    
   # Argentina is enjoying mostly favorable weather conditions as new summer crops are about to be planted.  Like Brazil, Argentina will face a threat from El Nino during the country’s next summer crop season.  
   # U.S. crude futures traded both sides of unchanged before ultimately slipping short of resistance from the nearby contract’s 20- and 50-day moving averages.       
   # France was able to win some business from Egypt in the latter country’s latest wheat tender.  Egypt bought 240,000 metric tons from France, Romania, and Poland.  Russia will not supply any wheat for the purchase.                 
   # The International Grains Council issued a supply and demand report that projected global grain output falling by 27 million metric tons on the year.  Consumption is expected to rise by 6 million metric tons to 1.991 billion bushels.        
   # The dollar index was lower after the late-session rally on Wednesday.  Stocks were down but finished well off the day’s lows.  Fast-changing interest rate expectations throw volatility in the mix for outside markets.        

***** 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 bulls made only a weak follow-through attempt after Wednesday’s limit-up move.  Prices turned lower after it became evident that cash activity was likely going to stall.     
   # Despite being technically oversold by many measures, hog futures continue lower behind cash prices that are sinking under the weight of seasonal expectations.  Slaughter numbers are up, weights are heavy, and packers are well-stocked.