AgriVisor Afternoon MarketWatch

Tuesday, February 16, 2016
*****Good Afternoon!*****

   # Grains bounce as corn and wheat correct from oversold territory and soybeans benefit from some commercial buying interest. 
   # Fund traders re-upped on their bearish grain bets by more than anticipated in the last reporting week. The large speculators had amassed a net-short of around 100,000 contract of corn coming into today's session. The soybean net-short is back up around 65,000 contractss. 
   # The NOPA crush report disappointed. January crush was 150.5 million bushels compared to estimates of 154 million. Softer crush numbers are a product of sluggish U.S. meal demand, particularly because of increased export competition from the likes of Argentina. 
   # Argentine farmers are still thought to be hoarding a substantial surplus of soybeans despite favorable price levels that have resulted from favorable exchange rates. The Brazilians are in the process of harvesting their soybean crop with the country's crop agency pegging progress at 16 percent on Friday. 
   # An overnight oil rally faded after it was announced that Saudi Arabia and Russia agreed to freezing output at January levels. Many analysts had expected a production cut. 
   # Equities and oil have been trading with a high correlation lately, but the two decoupled today when stocks were able to make considerable gains. It was suggested that the European Central Bank would continue to stimulate the euro economy. 

***** Live cattle end up the $3 limit with feeders higher by $3.77 to $4.47; hogs down $0.22 to $0.57. *****

   # Cattle futures have been closely linked with outside market action in recent sessions and a higher stock market worked in the board's favor on Tuesday. Cash markets are so far undeveloped after two weeks' worth of disappointing deals. 
   # Hog futures dipped moderately lower on some profit-taking near technical resistance and couldn't find any help from softer wholesale markets.