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AgriVisor Afternoon MarketWatch

 
Wednesday, August 10, 2016
***** Corn up fractionally; soybeans down a nickel; Chicago wheat up 2 3/4 to 4 3/4 cents. *****

   # Soybean futures fell for the first session in six.  Wheat was the best performer on the day as demand optimism was ratcheted up.  Corn futures also climbed on strong export data.
   # No daily sales soybean sales to report for a change, but a flash corn sale was announced.  143,650 tons of corn will head to Mexico during the 2016/17 season.  
   # A string of daily export sales announcements last week will make for a big set of numbers come tomorrow’s sales report.  Analysts look for new 2016/17 corn sales near 1 million tons with new-crop soybean additions north of 2 million.  Wheat sales should tally something near 450,000 tons.  
   # USDA looked aggressive starting out with some high corn and soybean exports when a first-look at 2016/17 demand projections were given in May; however, U.S. analysts are starting to expect those trade targets to rise further.  China is on track for another record year of bean imports while South America will provide very little corn to world buyers this season.    
   # Traders at the French cooperative InVivo expect that shipments of soft red wheat from France to countries outside of the European Union will fall 62 percent this year.  A wet season leaves the French wheat crop down 30 percent on the year.     
   # Ethanol production was up for another week to use a robust 104.2 million bushels of corn.  Use of corn is currently running short of the pace needed to meet the USDA grind goal.  Corn competes with sorghum as an input for U.S. ethanol, with sorghum recently contributing 2-3 million bushels per week to output.  
   # Officials from Brazil’s Ministry of Ag has requested through the proper government channels an approval to allow U.S. corn to be imported.  Brazil faces a shortfall on corn after a dry season for the second crop.  USDA analysts should again lower their estimate for total Brazil corn output this Friday.
   # U.S. crude stocks grew by 1.055 million barrels last week versus expectations of a 1 million barrel draw.  Gasoline and distillate inventories were lower than expected on the week.        

***** Live cattle and feeder cattle futures drop fractionally; hogs up $0.20 to $0.95. ***** 

   # Cattle futures dropped just fractionally on the day as traders starting taking profits near where the October contract was running into technical resistance.  Wholesale prices were a touch firmer on the midday report.  Cash bids surfaced near $116 live, but no deals were yet booked.   
   # Hog futures gained for a change as buyers observed higher wholesale prices.  The Midday cutout found the carcass cutout average up $1.40, but that reading has been volatile lately.  There is still not a lot of optimism over cash market potential.       

  SYMBOL IN EVEN SQUARE