Afternoon MarketWatch: Broad risk-off sentiment pressures grains

Friday, November 13, 2015
***** Corn futures down 3 to 4 cents; soybeans off 5 to 10; Chicago wheat lower by 1 3/4 to 2 1/2.  Kansas City wheat futures manage the only grain gains, up 1 3/4 on Friday.  ***** 

   # It was risk-off for the commodity trade on Friday as stock markets also sold off and the dollar rallied. Corn futures dropped 14 3/4 cents on the week, soybeans lost 12 cents over five days, and Chicago wheat tumbled 27 1/2. 
   # Solid export sales data for corn and soybeans were shrugged off.  24.3 million bushels of corn were near the top end of trade expectations and 47.8 million bushels of beans were above the average guess.       
   # The CFTC will delay its release of the weekly trader commitment data until Monday because of this week’s Veteran’s Day holiday.  Funds have now amassed a sizable short against the grains.         
   # Crush data from the National Oilseed Processors Association (NOPA) will be reported on Monday.  Traders look for monthly crush near 161 million bushels, which would beat the October 2014 number if achieved.  
   # A large sorghum sale was reported on the USDA’s daily export tracker.  116,000 metric tons of the grain will head to an unknown destination sometime in the 2015/16 marketing year.  Sorghum prices no longer hold the strong premium over corn that they had carried into the beginning of 2015 when China was importing large quantities.  
   # Dry weather is forecasted for the Midwest this weekend.  The two-week outlook remains wetter and warmer than normal for the region.       
   # There’s still a lot of introspection about the Chinese corn situation given the revisions on the WASDE report yesterday.  There was a US Ag. Attaché report from China posted today as well.
   # A sharp drop in Asian palm oil prices weighed on U.S. soy oil futures Friday.  Large palm oil inventories suddenly pressure a market that had been supported by El Nino worries in recent weeks.  
   # U.S. stock markets were sharply lower on weak retail data and continued uncertainty over interest rates.      

***** Live cattle drop $2.10 to $2.97 as feeders decline $2.80 to $3.87; hogs down $1.07 to $1.40.  ***** 

   # Carryover pressure from Thursday’s wholesale beef tumble sent cattle futures lower at the start.  The board continued lower as wholesale prices continued to drop, on Friday by $1.43 and $209.30 in the select and choice values.  
   # Pork cutout values dropped $2.81 on the carcass average and led hog futures lower on Friday.  Production levels remain high at a time when demand is turning seasonally weaker.