AgriVisor Afternoon MarketWatch

Friday, February 05, 2016
***** Corn down 2 3/4 cents; soybeans off 6 to 7; Chicago wheat lower by 6. *****

   # Grains suffered under selling pressure from the chart traders as corn, soybeans, and wheat all slipped below their major moving averages.  Outside market influence were unfriendly with oil and equities lower, the dollar up.     
   # Momentum faded for the grains after three weeks’ worth of short-covering campaigns from the funds came to an end.  Money managers aren’t willing to turn bullish as long as the market remains devoid of fresh news.      
   # Next Tuesday’s WASDE update will give traders something to talk about.  Market participants could be set up for a surprise considering the consensus currently calls for very little deviation from the January carryout estimates.       
   # Analysts took a shot at guessing the size of Brazil’s corn and soybean crops.  The average estimate has corn production slightly above the USDA’s January forecast at 81.6 million metric tons.  The consensus is for the soybean forecast to drop from 100 to 99.2 mmt.    
   # Wheat traders showed their caution in dealing with Egypt’s latest tender.  The top-importer was forced to reject all of only four offers that were submitted at elevated prices.  Exporters are wary about sending wheat to Egypt after the country refused to accept a French cargo last month because of phytosanitary issues.           
   # Soybean traders have shifted sentiment after the latest forecast for Argentina has heavy rains falling over the next few days.  Even if the outlook for dry weather next week comes to fruition, growers should still find some relief from dry soils as moisture is accumulated this weekend.    
   # U.S. equities were down sharply on the day as traders priced in the probability of higher interest rates.  The monthly jobs report showed a drop in the unemployment rate from 5 to 4.9 percent as well as some solid wage growth.  Weak earnings from some top technology companies helped weigh on the market. 

***** Live cattle down $0.72 to $1.57 as feeders drop more than $3; hogs down $0.37 to up $0.17. *****

   # Cattle futures fell as traders waited to see where prices in the cash market would land.  Weaker outside markets helped pressure the board.
   # Hog futures held steady on the day while cash and wholesale prices continue higher.  Buyers are cautious in a market that is technically overbought in the short-run.