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AgriVisor Afternoon MarketWatch

 
Wednesday, March 09, 2016
***** Corn futures down 1  to 1 1/4 cent; soybeans higher by 1 1/4; Chicago wheat up 2 1/4 to 3 cents.  *****

   # Report day came and went without injecting much volatility into the mix.  No real surprises on the balance sheets followed from only slight adjustments.      
   # USDA released a new WASDE report at midday.  U.S. corn demand went unchanged with carryout holding at 1.837 billion bushels.  Analysts thought that a reduction to the export target would add to 2015/16 ending stocks.            
   # As traders expected, U.S. soybean crushings were reduced by 10 million bushels, which resulted in the same addition to the carryout.  The average farm price estimate narrowed to $8.25 - $9.25.     
   # A few number changes to note on the world supply and demand projections.  For corn, South American production remains the same while South Africa drops further.  Exports and feed use rise slightly.  Ending stocks are reduced by almost 2 million metric tons.                    
   # For soybeans, world carryout drops 1.55 mmt as a result of better exports and crush.  South American production holds unchanged.    
   # No changes made on the U.S. wheat sheet while world ending stocks drop a little more than 1 mmt on lower production in India.   
   # Traders will move on from the March WASDE and look ahead to the March 31 Grain Stocks and Prospective Plantings reports.
   # Traders will also monitor early planting progress.  Wet weather has disrupted the start of efforts in the Delta.  USDA will not begin regularly monitoring national progress until about the second week of April.  
   # An ethanol production report garnered little attention ahead of the crop report.  Production was down for a second straight week while stocks were up.  Corn grind was still solid at 102.7 million bushels.  The pace needed to meet the USDA’s current 5.225 billion bushel grind target is 98.2 million bushels per week.  
   # Oil rallied without help from the weekly inventory report that showed stocks increasing by more than expected.  Gasoline demand was shown to be running strong.    # U.S. equities were choppy as traders wait to have some guidance from tomorrow’s European Central Bank meeting.  Anticipation of that meeting also helped to keep the dollar directionless.               

***** Live cattle settle steady to $0.37 weaker as feeders finish fractionally mixed; hog futures gain $1.05 to $2.32.  *****

   # Higher boxed beef prices kept the cattle futures curves supported, but buyers were content with staying on the sidelines until more cash deals are struck.    
   # Hog futures held support from the week’s lows and put together a solid rally.  Wholesale gains were achieved after prices had been holding flat in recent days.  
 

  SYMBOL IN EVEN SQUARE