AgriVisor Morning MarketWatch

Wednesday, November 25, 2015
***** Corn futures up 1 to 2 cents ahead of the break; soybeans fractionally higher; Chicago wheat up a penny. *****

   # Grains trade quietly higher overnight.  Trading volume is anticipated to be light as we approach the holiday weekend.  News for the grains is somewhat limited, but outside markets have some important stories to follow.  
   # Have a happy Thanksgiving as markets close for trading tomorrow.  Grains will have a shortened session on Friday, trading until 12:05 cst.   
   # Dollar index futures are higher overnight and trading above 100 ahead of some key economic reports on consumer spending, inflation, and jobs.  The dollar is also up sharply against the real after corruption arrests were made in Brazil.       
   # Traders will watch closely developments in Brazil as economic and political troubles continue to pop up in the country.  General instability has pressured the real currency, which has made Brazil’s grain exports relatively more attractive to world buyers.      
   # Dry weather is still an issue for growers in Mato Grosso, Brazil. Parts of the state are up to 8 inches short on moisture normally accumulated by this time in November. El Nino is seemingly disrupting what is usually an active monsoon season by now.
   # Pockets of dry soil still exist throughout the Southern Plains, primarily throughout Kansas. Rain that fell in the past seven days has helped ease some concern and combined with improved conditions in Russia and Ukraine to weigh on wheat prices.    
   # Energy markets were lower as investors expect today’s stocks report to show U.S. inventories building by another 1 million barrels.     
   # The chart still lean bearish for corn futures, but higher highs and higher lows achieved in the previous two weeks are technically promising.  Contracts face resistance just overhead from their 20-day moving averages.          

***** Cattle futures looking to keep momentum from last week’s turn higher; hogs face technical pressure at the open. ******
   # Cash cattle markets started with some light activity early in the week, but bids are now unestablished. Packer margins are negative and do not encourage big buying interest. Expectations for cash weakness continue to weigh on the board.  
   # Hog slaughters are slowing a touch, but still run about 6 percent higher than they did a year ago.  Pork inventories remain plentiful to help encourage the fundamental bearishness.  The most-active February futures contract is struggling to clear resistance from its 20-day moving average.