AgriVisor Afternoon MarketWatch

Tuesday, June 07, 2016
***** Corn futures up 1/2 to 3 1/4 cents; soybeans gain 3 to 12; Chicago wheat settles higher by 1 1/2 to 2 3/4. *****

   # New corn highs were achieved after bears failed to capitalize on early-session weakness.  The soybean futures trade featured another session bull-spread unwinding, but strength for the new-crop contracts was not enough to push the November contract past new highs made on Monday.  Chicago wheat retreated from session highs but did not give up the $5 mark.
   # Traders decided it was too early for crop conditions to mean very much to the market.  Monday’s Crop Progress report found the corn crop rated better than expected at 75 percent Good or Excellent.  The soybean crop was judged 72 percent G/E versus 69 percent last year.  
   # Another daily soybean sale was reported, this time 180,000 metric tons headed to China in the 2016/17 marketing year.  Chinese demand for U.S. beans is expected to remain strong in the coming weeks as the top-importer still has needs to secure for the fall season.  
   # Temperatures were cooler today ahead of the expected Midwest warmup.  Showers are not forecasted to return to the region before Sunday.     
   # Brazil’s second crop corn is threatened by cold temperatures that are descending upon the southern part of the country this week.  Wet weather is still a worry for coffee growers in the major production region straddling Sao Paulo and Minas Gerais. 
   # Estimates are in for the Friday WASDE report.  Analysts surveyed by Reuters average up to call for 2015/16 corn carryout to drop 31 million bushels while soybean ending stocks adjust downward to 385 million bushels.  Without any significant changes expected for 2016/17 demand, the new-crop carryout levels should drop by a similar amount because of lower carry-in stocks. 
   # More likely to have surprise potential than updates to the U.S. corn and soybean tables are changes made for the South American production numbers.  Analysts look for further reductions to estimates for Brazilian corn and Argentine soybean output levels.  
   # WTI crude oil futures notched in fresh six-month highs today. U.S. stockpiles are starting to come down along with production.  Analysts expect to see tomorrow’s weekly inventory report show stocks having fallen 3.1 million barrels last week.   

***** Live cattle up $0.45 to down $0.57; feeders steady to $0.07 to $0.30 lower; hogs down $0.40 to up $1.10. ***** 

   # Cattle futures were turned away from session highs for a second day in a row.  Traders are not convinced demand can stay strong enough to sustain recent beef gains.                       
   # Hog futures finished uneven on bear spreading that was featured throughout the session.  Cash and wholesale prices moved fractionally in opposite directions with the pork cutout weaker.