AgriVisor Afternoon MarketWatch

Wednesday, March 30, 2016
***** Corn futures down 5 to 6 cents; soybeans off 6 to 7; Chicago wheat drops 10 1/2 to 12 3/4. *****

   # Wheat led the way lower as traders were betting that some rain would be creeping into the forecast sometime during the rest of the week.  Some very light, localized rains fell throughout Kansas last night.  
   # A wheat sell-off sparked some profit-taking on corn and soybeans.  Corn futures go into the last day of the month holding gains of 13 cents while soybeans are up 56 cents in March.  
   # Ethanol production was down again on the week but continues to run well above last year’s pace.  Corn grind was a strong 104.2 million bushels and comfortably ahead of the 97.4 million needed per week to meet the USDA’s current 5.225 billion bushels target.  
   # Feed users in Brazil turned to their neighbors in Argentina and Paraguay to buy some corn.  A total of 500,000 metric tons was purchased and will hold the buyers over until Brazil’s second crop can be harvested.
   # Weekly export sales will be reported tomorrow morning.  Traders expect to see new corn bookings near 35 million bushels.  Soybean sales should come in around 15 million bushels with wheat probably struggling to reach 10 million. 
   # Oil futures couldn’t hold strong early-session gains.  The weekly stocks report showed domestic inventories growing by another 2.3 million barrels last week, but production is still definitely on a path lower.  Gasoline demand continues to be robust.  
   # Stock markets enjoyed some follow-through strength after yesterday’s comments from Fed Chair Yellen.  The central bank has indicated that it will remain ‘cautious’ with future rate interest rate hikes.       

***** Live cattle down $2.50 with feeders down $3.50 to $4.12; hogs off $1.30 to $1.57. *****

   # The wholesale market fell lower and with the cattle futures curve.  Both live and feeder cattle futures snowballed early and were not able to recover.  Live cattle futures gave up technical support from their major moving averages on the move down.       
   # Traders developed some pessimism over the cash market and were rushing to take profits on Wednesday.  A correction for the market won’t come as a surprise now that we enter a period will demand can slump ahead of the more-active post-Memorial Day season.