AgriVisor Morning MarketWatch

Wednesday, April 13, 2016
***** Corn up 2 1/4 to 4 1/2 cents; soybeans up 7 3/4 to 8 1/2; Chicago wheat up 2 3/4. *****

   # It’s an active overnight session with the grains higher all around.  Fund traders look to be the heavy buyers, both covering corn and wheat shorts and adding new longs to their bullish soy bets.     
   # Trading volume was very high for corn on Tuesday but fell behind that of March 31st.  Volume for soybeans was the highest since last year’s June Stock and Acres reports.  Open interest increased for both corn and soybeans.  
   # Trade numbers from China stoke positive sentiment for the grains.  Exports of all goods were up last month to help invigorate the China’s economy.  Soybean imports were also shown to be a record for March.  
   # Thoughts of improving health for emerging markets like China support industrial metals overnight.  Oil futures face technical resistance after a several-session run to the upside.  Soft commodities are mostly lower.        
   # Grains start the session higher despite a strong rally in the dollar that keeps a lid on many other commodities this morning.  The Brazilian real currency is steady after large gains have been achieved recently as a result of progress in efforts to impeach Brazil’s president.  
   # Planting in the Midwest has started in earnest this week.  Most of the region should stay dry at least through Monday.  Delays continue to be faced in the Delta after the recent few days of rainfall.  Weekend rains look to be headed to the Southern Plains where stressed winter wheat crops could use the moisture.
   # Traders are keeping an eye on hot conditions that threaten the second corn crop in Brazil and wet weather that hurts harvest-ready crops in Argentina.    
   # Strong markets in Europe and Asia have provided spillover support to U.S. equity index futures this morning.  JP Morgan’s 1st quarter earnings were down but better than expected.  Economists fear that the new earnings report season will show companies to have suffered a drop in profits of up to 10 percent on the quarter.   

***** Cattle futures face technical resistance at the start; hogs look to start steady/firmer.​ *****

   # The cattle market should benefit from some slight optimism that higher wholesale prices lend to expectations for the cash trade.  Warm weather forecasts are likely to have packers working to get ready for an early start to the summer grilling season.      
   # The pork market was a touch firmer on Tuesday and can help support futures if gains are sustained through mid-week.  June hogs face some technical pressure after giving up support from the 10- and 50-day moving averages but also approach oversold territory.