AgriVisor Afternoon MarketWatch

Wednesday, February 17, 2016
***** Corn futures up 3 3/4 to 4 1/4; soybeans up 2 3/4; Chicago wheat higher by 4 1/4. *****

   # Grains finish higher with support lent from outside markets. Buying picked up as futures captured levels of technical support.       
   # March corn rallied above the contract’s 10-, 20-, and 50-day moving averages. Nearby and new-crop soybeans finished over their 100-day moving averages.  Both corn and soybeans rebound after having made a 62 percent Fibonacci retracement of the recent move up.   
   # Market analysts point to short-covering from the funds in their effort to explain the two-day grain rally.  The large speculators had entered the week with a larger than anticipated bear bet.    
   # The weekly reports are delayed by a day because of the President’s Day holiday.  Ethanol numbers will be released tomorrow morning.  Production remains strong despite tight margins and comfortable stocks.  The export sales report will be issued Friday.  U.S. grain export prices are somewhat favorable relative to world rates right now and have sparked some optimism over near-term business prospects.    
   # An oil rally was part of the supportive influence from outside markets. Traders were chattering about world producers ready to agree on new production targets.  
   # U.S. equities are enjoying some follow-through strength after the major indexes were able to avoid notching in fresh lows last week.  Some shoring up of confidence in Europe in Asia helps.         

***** Live cattle up $0.72 to $1.30 as feeders gain $0.52 to $1.50; hog futures higher by $0.70 to $1. *****

   # Cattle futures were able to extend Tuesday gains.  It’s a corrective phase for now it seems, as futures traders still have little guidance from the cash market.  Wholesale prices also inched lower on the day.         
   # Hog futures continue higher despite supplies still being more than abundant in the near-term.  Optimism over the anticipated spring/summer supply and demand balance wins out.