AgriVisor Afternoon MarketWatch

Monday, May 16, 2016
***** Corn futures up 1 3/4 to 3 1/4; soybeans finish fractionally mixed; Chicago wheat settles steady. ***** 

   # U.S. corn plantings were called 75 percent done, as expected.  The Crop Progress report tallied soybeans 36 percent planted, also a number that was fully anticipated.
   # Illinois corn was estimated at 83 percent planted compared to 92 percent a year ago and 76 percent for the five-year average.  Iowa is at 88 percent versus 89 percent in 2015 and 78 percent for the average.  Notably behind pace are Indiana and Ohio.  
   # Winter wheat condition ratings did not improve as anticipated.  The nation’s crop is called 62 percent good or excellent, which is even with last week.  Analysts were looking for a one or two point bump.   
   # The closely-watched analysts at Informa updated their acres estimates.  They call 2016 corn acres 93.4 million compared with the USDA at 93.6.  Soybean acres are estimated at 83 million versus USDA at 82.2.  
   # Export inspections were strong for corn last week at 43.7 million bushels.  Soybean shipments were just 7.2 million with wheat also low at 13.5.  
   # A 128,000 metric ton corn sale was announced by the USDA.  The grain will head to South Korea for 2015/16 delivery.  
   # A favorable weather forecast for the next 5 days helped to weigh on the grain market.  The National Weather Service maps assign high chances to warm temperatures over the next two weeks, but both the 6-10 and 8-14 day outlooks lean wetter than normal.  
   # NOPA crush came in about as expected, maybe a touch on the low side, at 147.61 million bushels.  USDA bumped up the 2015/16 crush target by 10 million bushels to 1.88 billion on the May WASDE.  
   # It was another bid day for oil with prices up after Goldman Sachs moved its second-half 2016 forecast up to $50 per barrel. The decline in global production levels has accelerated in recent weeks because of wildfires in Canada and violence in Nigeria.  

***** June live cattle down $0.40 as the back months gain $0.75 to $1.12; feeders higher by $1.25 to $1.62; hog futures settle steady to $1.07 with relative strength in the front of the curve.  ***** 

   # More bear spreading was featured in the live cattle futures market with the June down and the deferred months higher.  Boxed beef rose further.  Choice cuts were $221.99, up $3.43 and select $208.25, up $2.30 on the midday report. 
   # Hog futures moved higher to price in better expectations for the cash market.  Higher wholesale prices helped out.  June hogs made new lifetime highs on the move.