Morning MarketWatch: Grains look to finish October with strength.

Friday, October 30, 2015
***** Corn futures trade fractionally firmer on Friday morning; soybeans up 3 cents; Chicago wheat up 2 3/4 to 4 1/4.​ *****  

   # Wheat futures continue higher overnight.  Corn follows behind, but the nearby December contract is running up against resistance from its 50-day moving average.  Soybeans trade at the top end of a six cent range.      
   # Scattered showers may fall over the Midwest tonight and tomorrow.  Weather is expected to clear early in the week before storms move through the Plains and back into the Midwest late next week.      
   # Market participants were surprised to see Russia left out of the latest Egyptian wheat tender.  Worries about the current crop have boosted Russian prices in recent weeks.    
   # There is much uncertainty over the current sentiment of fund traders.  The large speculators have trimmed back the net-long corn position that had been held since early summer and are also about even on soybeans.  There is only evidence that a small bit of the large net-short wheat holding has been covered.        
   # Traders are expecting a higher soybean yield estimate when USDA analysts update the balance sheet on November 10th.  Some suggest additions to usage could offset the bigger crop to leave carryout unaffected.      
   # The dollar is lower against major currencies overnight.  A sharp rally on Wednesday left the dollar index technically overbought, but the chart still leans positive for futures.  Even so, the dollar has recently fallen against the currencies of some of our major grain trade competitors like Russia, Ukraine, and Brazil.               
   # Stock futures are a touch higher overnight.  Traders price in some minor enthusiasm over a budget deal being reached in Washington.    

***** Cattle futures likely to trade lower at the start; hogs look to recover from a technically oversold position. ***** 

   # Cattle futures are looking toppy after the sharp move up out of early October lows.  December live cattle futures have gained an impressive $12 per hundredweight since October 1st.   
   # After a steady grind higher since early July, hog futures are dropping quickly toward a test of contract lows.  Traders are bearish as cash prices drop in response to high slaughter rates and heavy animals.