AgriVisor Afternoon MarketWatch

Wednesday, July 06, 2016
***** Corn futures drop 8 1/4 to 9 1/2 cents; soybeans down 2 1/2 to 10 3/4; Chicago wheat lower by 3 3/4 to 5 3/4 ****​*

   # Another round of showers falling across the Corn Belt this morning pressured the grains lower.  Those areas in the northern Midwest caught rains that they missed and others enjoyed over the holiday weekend.  
   # Soybean futures made a notable recovery off their session lows.  November futures finished in the top fourth of the day’s trade range as buyers stepped in to capitalize on oversold short-term technical parameters.  
   # The two-week outlook maps call for greater chances of above-normal temperatures, above-normal precipitation.  Storms are expected to continue popping up throughout the Midwest over the next few days.
   # Wheat futures are at a 10-year low as a bumper U.S. winter crop is expected to leave ending stocks as high as they have been in 29 years.  Also weighing on the market are big crops being taken to market in the Black Sea.
   # Historically-elevated condition ratings help to pressure the corn market.  The U.S. crop is tagged 75 percent Good or Excellent versus 69 percent a year ago.  Corn silking progress was estimated at 15 percent as of Sunday compared to 10 percent last year.  
   # Minutes released from the June Fed meeting today suggested that central bankers found the weak May jobs report disappointing enough to make them more uncertain about the economy’s ability to withstand an interest rate hike this year.  The June meeting was completed before the Brexit vote surprise, which may make Fed decision-makers even less likely to push for higher rates.    

***** Live cattle down $0.60 to $0.90; feeders steady to $0.50 higher; hog futures drop $1.67 to $2.62. *****

   # Cattle futures turned lower from technical selling but found support from firmer wholesale prices.  There have been no cash deals yet this week to report and bid levels are undefined.  
   # The attitude in the hog market continues to shift bearish as demand enthusiasm no longer outweighs pessimism over rising production.  A 10 percent tumble from the June high leaves August hog futures close to technically oversold territory.