AgriVisor Afternoon MarketWatch

Friday, March 11, 2016
***** Corn up 2 to 3 1/2 cents; soybeans gain 6 1/4 to 6 3/4; Chicago wheat down fractionally. *****

   # Corn and soybeans held gains throughout the session while wheat finished slightly weaker but well of the intraday lows.  An oil rally led the way for commodities with spillover support from higher a higher stock market.  
   # This week’s crop report ultimately proved friendly to the grains. U.S. corn carryout was not revised higher as most expected while ending stocks estimate for world corn, soybeans, and wheat were all lowered.           
   # Copper prices were up on Friday.  The metal is known as ‘Dr. Copper’ for what its strength says about the health of the economy.  Iron ore made a much talked-about 19 percent jump earlier this week in a move that signaled some restored confidence in China’s economic prospects.        
   # The Brazilian real currency firmed up further against the dollar at the end of the week.  Some recent stability in the emerging market currencies has diminished some of the headwind that unfavorable trade terms had created for U.S. export prospects.    
   # A new U.S. planting season has begun with delays in the Delta states.  Heavy rains totaling up to 10 inches have fallen throughout the region this week.  The major weather models are in disagreement over whether or not the southern U.S. will remain abnormally wet throughout the next two weeks, but there is that possibility.               
   # A hefty 170,800 tons of corn exports flashed across the USDA’s daily sales reporting system this morning.  The bushels are headed to Japan in the 2015/16 marketing year.  Traders were somewhat surprised to see a cargo of corn switched from the ‘unknown’ destination category over to China.         
   # Stock bulls were happy with the European Central Bank (ECB) decision to cut rates and further their quantitative easing initiatives.  Traders are also putting down bets against the odds of a U.S. interest rate increase.  The Federal Reserve will meet next week.     

***** Live cattle futures settle $0.47 to $1.50 higher as feeders gain $0.67 to $1.12; April hogs finish $0.35 lower as the deferred months close steady to fractionally firmer. *****

   # Bids in the cash market appeared at steady to higher levels and the futures market responded favorably.  Dressed sales were being booked at $220.  April live futures were able to settle to a new 3-month high but the contract approaches overbought territory on the charts.  
   # The morning cutout report placed some pressure on hog futures because the carcass average dropped $1.52.  Traders then took a dim view on cash market potential. The charts still lean bullish.