AgriVisor Afternoon MarketWatch

Monday, May 23, 2016
***** Corn futures up 2 3/4 to 3 1/4; soybeans down 13 1/4 to 15 3/4; Chicago wheat down a nickel. ***** 

   # Soymeal did not feature the same strength that rallied the complex last week.  Meal futures were pressured by technical sellers after the nearby contract settled above its upper Bollinger Band on Friday.     
   # Fund traders were seen taking profits on the giant soy long they have been holding.  Speculators do not yet have the same bullish motivation that they had when building a record net-long soybean position in 2012. The position currently hovers near 200,000 contracts.
   # Speculators were also unwinding long-soy/short-corn spreads throughout the session.  Funds were estimated to have come into the week with a net-long of 60,000 contracts, so the idea is that more length can be built within that position.  
   # Export inspections were fully anticipated for corn and wheat but missed the mark for soybeans.  Corn shipments totaled 42.4 million bushels, soybeans at 2.8 million, and wheat at 11.1 million.  
   # Some of the negativity related to low soybean shipments was offset by daily sales announcements of 20,000 metric tons of soybean oil purchased by an unknown buyer in 2015/16 and 140,000 tons of soybeans headed to an unknown destination in 2016/17.  
   # The Australian Bureau of Meteorology will issue an update to its El Nino/La Nina tracker on Tuesday.  NOAA data on sea surface temperature have recently shown the equatorial Pacific having cooled to a neutral level.  
   # The forecast leans wet for much of the Midwest this week.  The Eastern Corn Belt should be spared from storms until Wednesday.  Both 6-10 and 8-14 feature high chances for temperatures to run above normal.  
   # The Dow Jones Industrial Average was steady late this afternoon after trading both sides of unchanged throughout the session.  A rally for Apple stock helped to keep the major indexes supported against pressure from the rest of the technology stocks.    

***** Live cattle down the $3 limit as feeders locked at $4.50 lower; hog futures settle lower by $0.77 to $1.12.  ***** 

   # Cattle futures tanked in response to Friday’s Cattle on Feed report.  Last week’s cash deals near $130 make for a large premium over futures and could help support the board.  Boxed beef prices were steady on the midday report.  
   # Weakness from the cattle market spilled over and helped pressure hog futures.  Hog futures would have likely faced pressure anyway with a bearish bias having developed for cash market expectations.  The carcass cutout average was up $0.92 as of midday.