AgriVisor Afternoon MarketWatch

Tuesday, March 08, 2016
***** Corn futures gain 3/4 to 1 1/2 cent; soybeans up 2 3/4 cents; Chicago wheat higher by 2 1/2 to 2 3/4.  *****

   # Grains were higher throughout the session but gains faded into the close.  Funds were buyers early in an effort to lighten up their short bets.    
   # Some of the general bullishness over commodities faded as oil prices were unable to sustain upside momentum.  In early afternoon trading, WTI futures were holding just above Monday’s lows.  The weekly inventory report will help give the market some guidance tomorrow.          
   # Equities followed oil lower with buyers having second thoughts about what was sounding like improved sentiment regarding the health of the global economy.  Weak Chinese trade data painted a less rosy emerging-markets picture while negative yields in Japan and worry about banks in Europe cast a cloud over the developed-economy outlook.     
   # Heavy rains are expected to fall throughout the U.S. Delta tonight.  Flash flooding is a possibility for states west of the Mississippi River.  The Midwest will face scattered showers and thunderstorms that will result in less than 1-2 inches of precipitation for most.                  
   # Some export sales for were reported on the USDA’s daily system.  About 25 million bushels of soybeans were sold to an unknown destination for 2015/16 along with 25 million booked for 2016/17.  Another 40 million bushels were committed to China for the new marketing year.  
   # Report day is tomorrow at 11:00 central.  The average guess for 2015/16 corn carryout is 1.86 billion bushels compared with 1.837 estimated by the USDA in February.  The range of predictions for soybean carryout is 440-481 million bushels with an average of 457 million and against a USDA February estimate of 450. 
   # Corn futures are losing technical momentum after seeing intraday gains given up by the end of both sessions this week.  May corn faces overhead resistance from its major moving averages, starting with the 20-day.  The soybean charts shape up just marginally better with the May contract on the positive side of its 100-day moving average.  Key resistance remains $8.90.             

***** Live cattle settle $0.17 to $1.17 higher with relative strength in the front; feeders up $0.80 to $1.10. *****

   # Traders were surprised to see some early-week activity in the cash market.  The deals were done at levels steady with last week, which was viewed to lean bullish.  
   # Hogs were able to firm up late in the session with gains achieved in the deferred months.  Cash sales reported to the USDA were nearly 50 cents lower in the Western Corn Belt.