AgriVisor Morning MarketWatch

Monday, April 18, 2016
**** Corn down 1 to 2 cents ahead of the morning break; soybeans up 3; Chicago wheat up 3.​ *****

   # Friday’s Commitments of Traders report helps to buoy corn and wheat prices overnight.  Traditional funds were shown to have covered less corn shorts than had been anticipated while adding more weight to their bearish wheat bets.  Fund traders added length to the soybean net-long, which now stands at over 100,000 contracts.   
   # Prospects for the winter wheat crop improved after rain fell in the Southern Plains this weekend.  Wet weather should stick around in the region through today.  
   # Skies were clear in the Midwest this weekend.  The region will catch some of the remnants of the system currently moving through the Plains by midweek.  The forecast has another dry weekend preceding a wet start to next week.  
   # Farmers in the Midwest have had a good start to the planting season.  Those in the Delta continue to face delays because of wet weather.  This afternoon’s Crop Progress report should show the nation’s corn crop around 10 percent planted.  
   # Current soy bullishness is partly a result of weather troubles in Argentina.  Crop losses are mounting after flooding in recent weeks.  The forecast remains wet for the country’s northeast region, but dries out a little bit for the rest.  
   # No deal came from the weekend meeting among OPEC producers.  Oil bulls had been betting on a production freeze agreement.  WTI futures were down as much as $2.75 overnight.
   # A vote on the impeachment of Brazil’s president passed the lower body of parliament this weekend and will now move on to the senate.  The Brazilian real is up on the news with traders thinking a new government would help restore confidence in the economy.       

***** Cattle futures look to start firmer on better fundamental sentiment, hogs steady to firmer on a technical rebound.​ *****

   # Data on trader positions confirms that fund liquidation was a pressure on the cattle market last week.  Futures should find support at the start of the week in response to recent strength in cash and wholesale markets.                 
   # Pork production is moving lower as demand starts to pick up.  Still, supplies are not yet tight enough to enthuse futures traders.