AgriVisor Morning MarketWatch

Wednesday, March 09, 2016
***** Corn, soybeans, Chi Wheat all down fractionally at the break. ***** 

   # Grains drift lower overnight after a somewhat weak close on Monday. Soft commodities are down.  Gold and silver are up with copper down moderately.  Energies are a touch higher.  
   # Report day.  After the Outlook Forum and ahead of the March 31 reports, the March WASDE usually doesn’t offer much in the way of fireworks.  But, with the market having been somewhat wanting for fresh news, there is always the potential for some resulting action.  Analysts look for only small increases to corn and soybean carryout estimates.  
   # On Tuesday, funds were doing some light short covering on a bearish corn position that had totaled more than 200,000 contracts coming into this week.  The large speculators did a good share of short covering on the soybeans last Friday, now down to a net-short of around 65,000 contracts.  The short Chicago wheat position hovers around 100,000 contracts.           
   # Up to 10 inches of rain have accumulated in parts of northwest Louisiana in the past 24 hours with heavy precipitation also collected throughout Texas, Oklahoma, Arkansas, and Missouri.  Storms should continue to move through the Delta today.  
   # The weather outlook for the Midwest has a trough moving in from the East during the next 6-10 days, bringing with it a return of cooler, drier conditions.  The long-range outlook still remains wet and warm, though.     
   # Higher U.S. soyoil futures are supporting the complex overnight.  Edible oil markets are being lifted by expectations for further cuts to palm oil production in Malaysia and Indonesia.  While U.S. soybean futures are flat on the year, soyoil prices have gained about 1.3 percent so far in 2016.       
   # There has been talk of some rain possibly disrupting harvest in Brazil this week, but growers there are still well on track to get their crops out of the ground in time.  Brazil is about half way done with the soybean harvest with progress on the corn crop not far behind.     
   # Futures gains point to a higher open for the major U.S. stock indexes.  European markets were up in anticipation of friendly news to come out of the ECB meeting this week. Higher oil helps all around.     

***** Cattle look to start steady/firmer as hog futures open similarly.  ***** 

   # Cattle futures made gains on Tuesday as traders learned of cash sales being made in Texas at levels even with last week.  Futures buyers will approach with caution until they learn the cash market will develop similarly in other states.          
   # Hog slaughters are running a bit higher than last week but demand is expected to keep up.  The futures trade is becoming somewhat of a technical game as market participants wait to see how the spring/summer supply and demand fundamentals start to unfold.