Morning MarketWatch: Grains trade quietly ahead of export report.

Thursday, October 29, 2015
**** Corn futures fractionally changed in a tight range; soybeans up fractionally; Chicago wheat down 3/4 to 1 1/2 cent. ​*****

   # Grain prices are mixed overnight with soybeans the only taking on a higher tone ahead of the break.  Traders await 7:30 central export sales.    
   # Scattered showers may fall over the Midwest on Saturday, but the next 6 days are otherwise dry.  The latter part of the 6-10 outlook returns higher probabilities for precipitation across the country.  Temperatures are expected to be above to much-above normal through the first two weeks of November.    
   # Fund traders took part in Wednesday’s market by being net sellers of about 10,000 corn and 10,000 soybean contracts.  The large speculators are now close to neutral on their positions in both commodities.  A substantial net-short is still held on wheat.  
   # World wheat prices continue to find support from dry weather forecasts for Russia and Ukraine.  U.S. export data and the results of an Egyptian wheat tender will sustain or offset the bullishness today.      
   # Egypt’s latest wheat import tender is reported to have been met with higher than expected offers from Russia, so France may have a shot as currency terms have recently turned in the country’s favor.    
   # River bids are turning softer as corn exports fail to pick up steam.  The export program currently faces stiff competition from cheap corn in Brazil.         
   # December corn futures are looking to establish chart support at $3.75, but the contract trades with resistance overhead from all of its major moving averages.  
   # One analyst has issued a forecast for palm oil prices to rise by 15 percent through the first half of 2016.  
   # Uncertainty is equating to volatility in outside financial markets after the Fed took a surprisingly more hawkish stance on interest rates this week.  Traders are now pricing in a greater chance for rates to move up in December.  

***** Cattle futures likely to start higher toward a test of technical resistance, but may trade cautiously ahead of cash market development; hogs look to rebound from oversold territory. *****
   # Cattle futures jumped higher on Wednesday as cash optimism was generated.  Higher bids follow surprising gains in the beef cutout.  
   # Same story for hogs as prices fall under the weight of seasonal expectations.  Cutout values are soft but may find some support now that beef prices are hold strong.