AgriVisor Afternoon MarketWatch

Thursday, August 04, 2016
***** Corn down 3 to 4 1/4 cents; soybeans steady to up 2 1/2; Chicago wheat down 5 1/4 to 7. *****

   # Other than a weekly export sales report that was as solid as expected for corn and soybeans, fresh news was very much limited for the grain trade.  There were no major changes of opinion on weather to speak of.  Outside markets were of little influence to the grains. 
   # Little fresh news had trading volume light on the day.  Estimated corn volume was near 265,000 contracts compared to an average for the year at 385,000.  Soybean volume was very light at 100,000 contracts and the lowest in more than a year.  
   # The consensus view being that there exists no imminent weather threat for U.S. row crops, soybean futures gave up all of the day’s gains before the close while corn settled on the session lows.   
   # Strong export data of late hint to bargain hunting on the part of global buyers.  Sizable soybean sales were announced Monday and Wednesday on USDA’s daily reporting system.  Weekly sales of more than 1 million tons beat expectations this morning.  
   # Old-crop corn sales of 13 million bushels were strong but also short of 17 mbu last week.  Cumulative sales run ahead of USDA target for 2015/16 but shipments are behind pace to meet the current 1.9 billion bushel goal.  
   # Wheat export sales were not as strong as they were for corn and soybeans and helped to weigh on futures today.  Also negative for prices are an easing of worries related to weather in Europe.  
   # The United Nation’s Food and Agriculture Organization updated its global food price index to show drop in values of about one percent on the month.  Lower prices for grains and edible oils were cited as the primary contributors of a lower index.
   # A private crop tour in central Iowa found yield estimates falling short of last year’s survey of the region.  MDA Weather’s tour of seven counties found an average corn yield of 184.5 bushels per acres versus 186.1 for the area in 2015.
   # Nearby WTI crude futures made a technical rebound to clear their 50-day moving average.  The major equity indexes were flat on the day as traders looked ahead to tomorrow’s jobs report.  Dollar index futures were up slightly on a softer pound.  

***** Live cattle futures drop $1; feeders steady to $1 lower; hogs off $0.65 to $1. ***** 

   # Early cattle gains were erased by midday on some light profit-taking.  Traders were taking money on longs ahead of a cash trade that is not expected to develop fully until Friday.      
   # Hog futures made new contract lows before finishing near the middle of the session ranges.  Traders shrugged off strong early gains for wholesale after having seen those prices reverse back lower toward the close of markets over the past few days.