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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.     
 

  SYMBOL IN EVEN SQUARE