AgriVisor Morning MarketWatch

Wednesday, June 22, 2016
***** Corn down 1 1/2 to 2 1/2; soybeans off 2 1/4 to 4; Chicago wheat up 3. *****

   # Corn futures went back on the defensive late in overnight trading.  The session is active as market participants reassess their outlooks after Tuesday’s fallout.  This week’s rains have gone a long way in shifting attitudes.
   # Corn trades an expanded set of 40-cent price limits today after the July and December contracts settled limit-down 25 cents on Tuesday.  Soybean limits remain at 65 cents, wheat at 35 cents.      
   # Corn futures volume was above average on Tuesday.  Open interest declined 10,000 contracts with heavy liquidation for the front month.  New shorts were opened on the new-crop contracts.    
   # Fund traders were estimated sellers of nearly 50,000 contracts of corn on Tuesday.  Also selling a little more than 10,000 soybeans, both corn and bean net-longs are thought to hover at 200,000 contracts apiece.  
   # Rainfall totals amounted to a couple inches or more in parts of eastern Iowa and northwestern Illinois over the course of Tuesday evening.  Storms continue to roll through the Midwest this morning. 
   # Weather is the dominant influence now, but a looming couple of crop reports will start to demand attention from the trade.  Estimates for acres are all over the board, with some of the most aggressive calling for a 3 million acre increase to soybean plantings.
   # Traders expect to see crude stocks drop by another 1.5 million barrels this week.  The energy inventory report will be issued at 9:30 central.  An expired July contract leaves August WTI futures trading just above $50 a barrel this morning.  
   # The British vote Thursday on whether or not to leave the European Union.  A win for the ‘leave’ camp has greater potential to be perceived as a negative for global markets.  The dollar would be expected to strengthen on weakness for the pound and euro.      

***** Cattle futures likely to benefit from follow-through buying at the start; hogs likely to have another uneven open. *****

   # Estimates for the Cattle on Feed report are starting to circulate.  The average guesses expect to see total on-feed up 2 percent, placements up 9 percent, marketings up 5 percent.  
   # Hog futures are in a minor consolidation phase as traders await Friday’s Hogs and Pigs report.  The cash market has started the week on the defensive but finds support from an improved wholesale trade.