AgriVisor Afternoon MarketWatch

Thursday, February 25, 2016
***** Corn down 4 cents as soybeans give up 6 to 8 1/2; Chicago wheat makes gains of 2 1/2. *****

   # Grains sunk lower as traders priced in new-crop estimates released from the Annual Outlook forum.  Corn futures are off 10 cents through this point in the week while soybeans are down 8 1/2 and Chicago wheat futures hold a few cents worth of gains.     
   # USDA acres estimates were the major point of discussion with government analysts looking for a 2 million acre increase to corn area this year, bringing the total to 90 million.  The related bearishness more than offset any bullishness that would come from a 200,000 acre reduction to the soybean plantings forecast.  While corn acres are projected to rise by 2 million, USDA says plantings to other feedgrains should decline by a similar amount.         
   # Estimates for lower U.S. wheat acres helped to protect prices against bearish global production forecasts from the International Grains council.  USDA projects total wheat acreage to drop 6.7 percent on the year.  
   # USDA trade forecasts were bearish with the government looking for the U.S. to lose further market share.  Chinese grain demand will rise but at a slower pace.  The dim view of export potential comes after a less-than-stellar weekly sales report.    
   # The charts lean ever weaker as corn futures make fresh one-month lows.  March corn settled 7 cents above its lifetime low.  Nearby soybeans also dropped under early-February lows and re-approaches psychologically-important support from $8.50.      
   # U.S. stocks were able to put together a rally as oil futures were able to reverse higher for a second straight session.  Traders still have some worry that a British exit from the European Union will help trigger recession in Europe. Some optimism over emerging market economy potential was talked about.    

***** Live cattle up $0.55 to $1.12 as feeders gain $1.07 to $1.37; hog futures down $0.22 to $0.32. *****

   # More optimism for cash cattle market potential helps propel futures higher.  Bids at $133 live are failing to find much interest from those offering in near $138.                 
   # Traders were quick to take profits on hogs as futures approached recent highs and started to register as overbought on the charts.  Wholesale prices dipped moderately and helped limit buying interest.