AgriVisor Afternoon MarketWatch

Wednesday, November 25, 2015
***** Corn futures gain 2 1/2; soybeans up a dime; Chicago wheat fractionally weaker on the day. ***** 

***No advice on Friday unless updates are needed. *****

   # The USDA’s daily export reporting system included a 190,000 metric ton sale of soybeans headed to an unknown destination during the 2015/16 marketing year.  
   # Ethanol production for the week was a record at 1 million barrels per day.  Corn grind was a marketing year high at 105.84 million bushels.  The pace needed to meet the USDA’s 5.175 billion bushel grind target is 98.
   # Soybeans are finding strength mid-week after Argentina’s new president denied that he was immediately suspending grain export taxes.  President-elect Macri does still promise an eventual cut to the 35 percent soybean export tax and the 20-23 percent wheat and corn taxes.  
   # The dollar was up strongly against the Brazilian real after a corruption probe netted arrests on Wednesday.  The real is still up nearly 14 percent since bottoming against the dollar on September 24th.  
   # Egypt tendered for wheat this week, gathering the cheapest offers from France.  Russia was just $3 more expensive in that country’s best offer.  Free-on-board (FOB) offers are back below $200 per ton.  Egypt ended up buying wheat from both France and Russia, along with some from Romania. 
   # Higher Asian palm oil prices provided some support to the soy market on Wednesday.  Production data out of Malaysia show a 10 percent drop in output so far on the month.  Exports out of the region are also improving.
   # Energy prices were down moderately after the weekly stocks report showed U.S. crude oil inventories growing by 1 million bushels.     
   # A slew of economic data was released on Wednesday.  Weekly jobless claims were better than expected at 260,000.  Durable goods orders beat the consensus estimate and climbed 3 percent in October.  New home sales were 495,000 last month versus expectations of 500,000.         

***** Live cattle trade $0.65 to $0.95 higher in early afternoon trading as feeders gain $0.55 to $0.82; hogs steady to $1.32 higher.  ***** 

   # Cattle futures were able to trade with slight gains on Wednesday afternoon.  Support was given by firmer wholesale beef prices, which were up more than $1 on the midday report.  Cash markets are still quiet with last week’s $127 live deals still standing as the benchmark.    
   # Hog futures were mostly higher but faced technical resistance from the 20-day moving average.  Pork cutout values were lower midday but the carcass average is holding above $70.