AgriVisor Afternoon MarketWatch

Thursday, August 11, 2016
***** Corn down 1 to 1 1/2; soybeans up 1 1/2 to 5 1/4 cents; Chicago wheat down 1 1/2 to 5 1/2. *****

   # A very strong weekly grain export sales report provided little support to the market.  New soybean sales for the new-crop were a whopping 2.79 million tons.  Corn sales also reached over 1 million tons.
   # China continued to show buying interest with a flash sale reported by the USDA – 120,000 tons of U.S. beans headed to the top-importer in 2016/17.  Another 129,000 tons was reported sold to an unknown buyer. 100,460 tons of soymeal was booked for delivery to Mexico as well.   
   # Rain was falling across the Iowa/Minnesota/Wisconsin today.  Showers and thunderstorms are expected to pop up throughout the Corn Belt through the end of the weekend.  The 6-10 day outlook leans drier than average.
   # Soyoil futures were again the leader of the soy complex today.  The U.S. market is enjoying strength spilled over from higher Asian palm oil prices.   September soyoil futures are up 8 percent since their late-July low while soybean futures are up less than half that over the same period. 
   # November soybeans futures have clearly struggled with technical resistance from their 20-day moving average, having been turned away from it in each of the past three sessions.  The August low at $9.43 lends support while a high at $10.06 is another point of resistance.  
   # The Brazilian corn crop is due for another sizable downgrade on tomorrow’s report as results from the country’s second crop harvest continue to disappoint.  Brazil’s crop agency Conab recently projected total output at 68.5 million tons versus the USDA July estimate of 70 mt.  
   # The major U.S. equity indices were higher in a broad-based rally.  Dollar index futures were up moderately while treasuries dropped.               

***** Live cattle down $0.37 to $0.82; feeders down $1 to $1.77; hog futures steady to $1.32 lower. *****

   # Cattle futures came off their lows but finished weaker despite better wholesale prices and growing optimism over cash market potential.  Traders were taking some profits where live cattle futures were running into technical resistance.  
   # Hog futures turned lower after the October ran into selling pressure from its 20-day moving average.  Further losses were generated after pork prices gave up recent gains and then some.