AgriVisor Afternoon MarketWatch

Wednesday, June 01, 2016
***** Corn futures rally 7 3/4 to 9; soybeans up 11 1/2 to 21 1/4; Chicago wheat higher by 9 1/4 to 10 1/2. ***** 

   # Nearby soybeans futures crossed $11 for the first time in nearly two years.  The July contract settled just a tick short of the mark, though.  Soybeans are working on completing an eight straight week with gains.
   # Funds were back to building their bullish corn and soybean bets, having entered the session with a net corn long of about 70,000 contracts and long soybeans by 200,000.  They were expected to have been net buyers of 12-15,000 soybean contracts and 10,000 corn on the day. 
   # Higher prices for soybeans coming out of Brazilian ports and a better market for Argentine corn helped to keep traders optimistic about prospects for the U.S. trade programs.  There is also chatter to be heard about the Chinese looking to source U.S. beans for fall.  
   # USDA’s Fats and Oils report tallied April soybean crush at 158 million bushels, which was better than an average trade guess of 156.8 million.  The number was down on the month but even with last year’s April count.    
   # Solid planting progress numbers and a favorable first-look at condition ratings for corn were shrugged off by the bulls.  Good weather early in the season is partially outweighed by chances of La Nina developing sometime during the summer.
   # The June 10 WASDE report approaches quickly.  Traders will not look for any major surprises from updates to the U.S. tables.  Demand estimates for the old crop could be tweaked, but U.S. supply numbers are not likely to be touched before the June 30 Stocks and Acres data can be worked in to the new crop.    
   # Dollar index futures are being turned away from its 100-day moving average.  The currency is supported by expectations for another interest rate increase this year.  More currency volatility is promised to follow Friday’s jobs report because of the data’s bearing on the Fed rate hike decision.       

***** Live cattle down $0.60 to up $0.32; feeders down $0.17 to $0.67; hogs up $0.57 to $1.35. ***** 

   # Cattle futures bounced off session lows after higher midday beef prices relieved the market of some pessimism.  Choice cuts gained $1.40 while select were up $0.54.  Cutout values are 10-15 percent lower than they were a year ago and should attract solid consumer interest in the summer months ahead.            
   # Hog futures gained on traders’ optimism over potential for the cash and wholesale markets.  All components of the carcass cutout average improved expected for loins and ribs.  Direct hogs were reported higher by $1.37 in the Western Corn Belt.