AgriVisor Afternoon MarketWatch

Tuesday, April 19, 2016
***** Corn closes higher by 3 1/2 to 6 1/4; soybeans up 28 to 32; Chicago wheat up 13 to 13 1/2. ***** 

   # A weaker dollar encouraged buying across the commodity space.  Metals were the leader, but grains and energies were not far behind.
   # Traders continue to talk about adverse weather conditions in South America.  Brazil’s second corn crop is threatened by heat and dryness while Argentina’s soybean crop is suffering losses from flooding.  
   # Nearby corn futures are testing technical resistance from their 200-day moving average.  Position within the Bollinger Bands and a Relative Strength Index near 70 suggests futures are technically overbought.  Soybeans made an extremely volatile move up and finished above daily pivot resistance on their way to making new six-month highs.  
   # Fund traders probably pared their bearish bet on corn futures to something just less than 100,000 contracts today. The position had been net-short by more than 200,000 contracts at the beginning of March.  Money managers are adding to a soybean net-long that now approaches 125,000 contracts.   
   # Producers will have made a great deal of planting progress before weather turns wet in the Midwest Wednesday and Thursday.  The forecast has another clear weekend coming for most of the Corn Belt.  Planting progress for the corn crop was 13 percent as of Sunday.  
   # Crude oil rebounded after a lower trade on Monday followed the failure of OPEC producers to reach a production freeze agreement.  WTI futures trade about $2 short of their 200-day moving average.  

***** Live cattle down $0.27 to $0.60 as feeders drop $0.27 to $0.77; hog futures finish higher by $0.77 to $1.35. ***** 

   # Wholesale prices set back today; traders did not expect last week’s strong beefs gains to be sustained.  Cash expectations for this week are not overly friendly.           
   # Hog traders took the opportunity to cover shorts and capitalize on technical support.  The June contract’s settlement above its 100-day moving average should help spark some buying interest.