AgriVisor Afternoon Marketwatch

Wednesday, August 24, 2016
***** Corn futures ended 1 lower, soybeans mostly 8 lower, with Chicago wheat 1-4 lower. ***** 

   The Pro-Farmer tour results were the dominant feature in the grain pits Wednesday.  The Indiana(173.42) and Nebraska(158.60) corn yields were off the tour results the last two years, years in which records were set.  The soybean pod counts for both though were near the tour counts the last couple of years, hinting soybean yield potential is good.  Illinois data will be released tonight. 
   Again, there was no soybean export sale to announce, but there was a 101,600 ton sale to unknown.    
   Export sales come tomorrow morning.  The trade is looking for 1.1-1.5 mmt. of soybeans, 900,000 to 1.2 mmt. of corn, 400-600,000 tons of wheat, and 90-300,000 tons of soymeal.
   There is some talk about heat for France/Germany, and possibly into the Black Sea region that could impact the corn crops slightly, but the trade mostly ignored. 
   There’s still a lot of talk about the cancelled Egyptian wheat tender.  It seems sellers are still hesitant to deal with Egypt in the wake of the ergot problem, and are not offering Egypt the most competitive offers.  The move was seen as a move to bring sellers more in line with offers they give other buyers. 
   Our short term weather forecasts has this weather system sweeping across the Midwest, with light, moderate amounts of moisture.  Temps will warm a bit, but still be generally mild.  The longer range forecasts are starting to turn warmer, drier, especially in the Great Plains and southwestern part of the Corn Belt.  N. Plains are expected to have normal temps/slightly above normal moisture.  
   Corn basis was is showing signs of slippage with the harvest fast approaching.  Soybean basis is somewhat stronger because of the demand ingredients.         
   Financial/forex markets remain mostly quiet, with traders looking ahead to Friday’s GDP data and Yellen’s speech at the annual Jackson Hole Fed symposium.  But for the first time in a few days, there seemed to be general weakness across a number of investment sectors, commodities included. 

***** Live cattle futures ended $0.52 to $1.22 lower, feeders mostly ended $0.92-$1.37 lower, with hogs $0.20 to $0.87 lower.  *****  

   Wholesale beef prices ended near steady, with choice at $200.32.  Cash cattle slipped slightly in a moderate trade, with live at $114-$116 and dressed at $181-$183. The lower cash prices were the bigger downward drag on futures.  Packers are making money slaughtering hogs.  
   Wholesale pork prices ended near steady, with the #2 cutout at $75.61.  Cash hog prices slipped slightly with packers still getting offered moderate supplies.  Packers are still making good money.