AgriVisor Morning MarketWatch

Wednesday, December 02, 2015
***** Corn a penny weaker as wheat futures hold steady overnight; soybeans up 1 3/4 to 2 3/4 cents ahead of the break.​ *****

   # Grains continue mostly higher overnight along with some support from a weaker dollar and positive overall commodity market sentiment.  
   # Soybeans are finding strength on news out of South America.  The new President of Argentina won’t take office until December 10th, so some of the bearish reaction to his election has faded.  Brazilian weather worries are also helping to support U.S. prices.       
   # Rains are expected to fall in Mato Grosso, Brazil this week, but totals are not likely to amount to as much as previously anticipated.  Dry weather in northern and north-central Brazil shows the inconsistency of this year’s rainy season thus far.  
   # Fund traders have covered a small portion of their bearish soybean bet so far this week.  During the last reporting week, the large speculators upped their net-short soybean position to more than 50,000 contracts.  Funds remain net-short by nearly 75,000 contracts of corn.                   
   # Soyoil prices have found some support from the new EPA fuel targets.  Consumption could rise by more than 450 million gallons in 2016 as a result of higher biodiesel blending.  Soyoil prices also still maintain support from worries related to El Nino’s potential impact on palm oil production in Asia.   
   # Improved conditions for the winter wheat crop have pressured prices this week. USDA scouts reported better crop ratings on Monday as dry spots in Southern Plains have shrunk considerably.  Falling wheat prices in Europe and Russia also haven’t helped the matter for wheat prices.              
   # Soybean futures are rolling upward with some technical momentum as the January contract looks to make a 62 percent retracement of the mid-Oct to late-Nov slide.  Key resistance from $9 hovers just overhead.  
   # Stocks and bonds could be choppy this week as traders digest some speaking engagements scheduled for Federal Reserve Chair Janet Yellen.  U.s. equity index futures are steady on Wednesday morning.  The dollar is up overnight as traders look for central bank action in Europe this week.    

***** Cattle futures look build on Tuesday’s bullish reversal; hogs also poised to capitalize on favorable chart support. ***** 

   # Traders are talking cold weather in the West being a bullish catalyst for cattle. Wholesale prices holding up so far this week help.  The showlist is expected to grow this week, but improved demand expectations could keep support under cash prices when the market develops later in the week.  
   # Strong pork demand at a time when production is very high helps support hog futures.  The carcass cutout average has held support from $70 and has made gains so far this week.