Afternoon MarketWatch: Grains drifting lower as soy holds strength.

Wednesday, November 04, 2015
***** Corn futures down 2 1/2 cents and sitting on overnight lows; soybeans up 2 to 3; Chicago wheat higher by 3 3/4. ******
   # A mixed trade for the grains so far on Wednesday with futures trading light volume overnight.  Fresh headlines are limited.            
   # Soybeans are up with the help of soy oil.  Stronger Asian palm prices were recorded on Wednesday to lend support to the market.   
   # Farmers should have an open window to help finish up the row crop harvest this week, but rain returns late in the two week forecast.  Temperatures are expected to remain well above normal for the bulk of November.  
   # Wet weather has returned in Brazil with the beginning of their rainy season.  The Mato Grosso region is finding relief from the dry conditions that had disrupted early soybean planting efforts.    
   # Corn prices were able to find strength on Tuesday despite a bearish yield estimate reported by Informa.  The closely-watch group of analysts projected the number at 170.1 bushels per acre, which compares to the USDA October estimate of 168.    
   # Estimates from the Bloomberg survey are circulating.  The average trade guess calls for corn yield to rise to 168.2 bushels per acre.  Soybean yield is projected at 47.5, up from the USDA’s 47.2 in October.  
   # Strength in the energy market is lending some support to the broad commodity space, grains included.  U.S. crude futures have gained more than 10 percent since bottoming out just last week.  
   # Chicago wheat futures are finding solid buying interest at $5 while corn still enjoys chart support from $3.75.  Soybean futures are still behind their major moving averages with the 50-day sitting just overhead at $8.86 3/4.  
   # The dollar index is continuing higher this week. Futures on the index track the dollar’s move against six currencies – the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.  Grain traders keep in mind to look also at the currencies of our major export competitors, like the Brazilian real, which is up on the week against the dollar.           
   # Stocks in China rallied on Wednesday to lend support to international markets.  Investors in the U.S. await Friday’s unemployment report.      

***** Cattle futures look to open steady\higher in a bid to hold onto chart support; hogs futures are threatened with making lifetime contract lows ***** 

   # Hogs trade at five-year lows as large slaughter numbers are keeping pork inventories high.  Demand at the retail level is viewed as tepid relative to current supplies.         
   # Cattle futures are moving lower this week on ideas that recent gains in the cash market won’t hold.  Boxed beef prices have been resilient lately, but fell on Tuesday to contribute to the bearishness.