AgriVisor Afternoon MarketWatch

Friday, January 08, 2016
***** Corn futures settle higher by 4 to 4 1/2 cents; soybeans up fractionally; Chicago wheat gains 9 to 10. ***** 

   # Check Closer Look page for trade expectations for the Jan 12. USDA reports.
   # Without the formidable headwind of widespread anxiety in outside markets that was present through the first part of the week, grains were able to tack on gains during Friday’s session.  
   # The scrapping of circuit breakers in the Chinese stock market allowed some stability to be restored to global equities.  Still, U.S. markets struggled to hold on to early-session gains.  
   # Financial traders reacted to the December jobs report that found nonfarm payrolls up by more than anticipated.  The unemployment rate remained unchanged at 5 percent.  If jobs gains continue to hold strong in subsequent reports, the Federal Reserve may be comfortable making further interest rate adjustments.      
   # Short-covering from the funds was a likely boost to grain prices on Friday.  The large speculators had entered the session holding a substantial net-short on the grains.  Additional short-covering could be observed ahead of next week’s crop reports. 
   # March corn futures were able to recover after a probe below technical support at $3.50 this week, but the contract could not surpass the 10-day moving average on Friday.  March soybeans settled over their 10-day but stopped short of the 20-day.
   # Brazilian farmers are lobbying their government with a request for legal action against U.S. agricultural subsidies.  Farm groups in Brazil contend that the subsidies are a hindrance to the types of fair competition protected by World Trade Organization agreements.  
   # Private forecasters have upped their estimate for China’s 2015/16 soy import estimate to 80 million metric tons.  That number would represent small growth on the year prior.  
   # Earnings season begins for U.S. corporations next week.  The reports have the potential to put the focus back on the balance sheet fundamentals and away from the outside noise that was a product of China drama this week.     

***** Live cattle futures drop $0.55 to $1.17 as feeders drop $2 to $4.60; hogs finish ***** 

   # Light cash cattle volume was trade on Thursday at prices even with last week, so futures did not have much incentive to rally given that they had built a comfortable premium.  
   # Hog futures slipped from intraday highs to finish fractionally mixed on the session.  The midday pork report had the carcass average gaining 99 cents, bringing it back above $70.  Futures maintain friendly short-run chart support.