AgriVisor Afternoon MarketWatch

Thursday, May 12, 2016
***** Corn futures settle higher by 10 1/4 to 11 1/4; soybeans down 4 3/4 to 6 1/4; Chicago wheat up 7 to 9.  ***** 

***Check Corn Advice.

   # Traders were seen unwinding long soy/short corn spreads.  Funds were taking profit on soybeans after running up their net-long to more than 200,000 contracts.  The idea is that there is more length to be added to the newly-bullish corn bet ahead of the production season.  
   # Soybean futures closed lower for a second straight day, only the second time two consecutive lower closes were made since March 1st.  Levels of potential support are $10.50 and the report day low of $10.23 1/2. 
   # Weekly corn sales were good for corn, not so good for soybeans.  New corn sales were 43.5 million bushels and near the top end of expectations.  Soybean sales were near the bottom end at 7.8 million and sales for the 2016/17 book were virtually zero.  
   # Also positive in export news for corn, a 210,000 metric tons sale was announced.  All daily sales over 100,000 metric tons are announced by the USDA.  The four cargoes are headed to Saudi Arabia for 2015/16 delivery.
   # NOPA crush will be reported on Monday.  Analysts look for April soybean crush to come in near 149 million bushels, which would be down from 156.7 in March and 150.4 in April 2015.
   # Some numbers on farmland values were reported today.  The St. Louis Fed found values in its district (including land southern Illinois) fell 6.4 percent in the first quarter.  Non-irrigated farmland in the Kansas City Fed District fell 4 percent on the quarter.
   # It has been a volatile week for U.S. stocks, with more than a couple up or down 200 point days for the Dow.  Jobless claims came in higher than expected this week at 294,000 versus expectations of 265,000.  Despite some shaky economic data reported as of late, some economists are expecting a June interest rate hike.     

***** Live cattle futures down $0.25 to $0.75 as feeders drop $2.02 to $2.85; hogs up fractionally.  ***** 

   # Live cattle futures started with a test of Wednesday’s lows but rebounded quickly after, and then sunk lower into the close.  The bearish outside day will likely trigger additional technical selling on Friday’s open.  A higher start to cash dealings failed to support futures.                   
   # Hogs started higher with technical momentum on their side.  Higher wholesale prices helped sustain the gains.  The midday carcass average was $83.99, up $0.92.