AgriVisor Afternoon MarketWatch

Monday, June 27, 2016
***** Corn finished fractionally changed; soybeans rally 25 to 30 cents; Chicago wheat falls 6 3/4 to 8. *****

   # Soybeans found support from traders that see hedge fund managers sticking with their bullish bets.  The latest CFTC report kept the fund net-long at 200,000 contracts.  The large speculators seem to want to stay long until more is known about late-season weather prospects.   
   # Weather is mostly a negative for the corn market as rain falls throughout the Plains and into some of the dry areas of Missouri.  Cooler temperatures expected for the next few weeks bode well for the crop.  
   # Traders shrugged off a solid corn inspection number this morning.  Weekly shipments of 57.13 million bushels beat last week’s strong total.  Cumulative inspections still run at just 73 percent of the USDA sales target.
   # The soybean inspections tally was not all that hot at 10 million bushels, but the slightly-disappointing reading was offset by a daily sales announcement that had 132,000 tons headed to an unknown destination in 2015/16.  
   # December corn futures held onto support from their 100-day moving average at the close but settled below the 200-day, which has started to dip lower from $3.95 3/4.  The give-up of early gains leaves today’s high at $4.01 3/4 as a level of important resistance.  November soybeans put in a settlement above $11 and have a test of resistance just ahead from their 20-day moving average, which is still trending up from a current $11.17.     
   # Traders are looking ahead to Thursday’s grain stocks/acreage reports.  Traders are looking for plantings: corn 92.78 mln. acres, soybeans 83.95 mln., spring wheat 11.49 mln. and durum at 2.0 mln.  June 1 stocks are expected to be 4.52 bln. corn, 831 mln. soybeans, and 983 mln. wheat. 
   # Losses for the Dow Jones Industrial average have totaled up to 900 points over Friday and Monday alone.  The Brexit vote outcome has put a strong bid under the dollar as investors seek safe haven.  Crude oil and most other commodities are put on the defensive as a result.  

***** Live cattle finish $1.15 to $1.42 higher; feeders up $0.72 to $1.22; hog futures drop $0.50 to $1.47. *****

   # Friday’s Cattle on Feed report was bearish on its face, but traders did most of the pricing in of a high placements number before the report was issued.  Starting off the week, futures rebounded toward a cash market that traded $116-$118 live last week.    
   # Friday’s hog market did not price in beforehand what turned out to be an unfriendly Hogs and Pigs report, and so the related negativity combined with bearish outside market influences to pressure hog futures at the start of the new week.