AgriVisor Afternoon MarketWatch

Wednesday, August 31, 2016
***** Corn fractionally changed; soybeans down 5 1/2 to 7 3/4 cents; Chicago wheat down 2 1/4 to 5, Sep KC wheat up 3 1/2.​ *****

   # Corn futures dropped 33 cents through August while soybeans lost 72 1/2 and Chicago wheat fell 46 3/4.
   # A large set of flash sales was announced by the USDA this morning.  187,000 tons of soybeans were sold to China, 275,000 tons of corn to Mexico, and 138,000 tons of HRW wheat to an unknown buyer.
   # The flash wheat sale was the first of its kind in quite a while.  The sale comes as U.S. wheat exports have become very competitive relative to supplies in Russia and Ukraine.    
   # Ethanol production was high again last week and used over 100 million bushels of corn.  Processors look to be on track to meet the USDA’s goal of 5.2 billion bushels that was revised down from 5.225 billion on the August WASDE report.
   # Traders are eager to see the Thursday morning export sales report.  New corn sales for 2106/17 are expected to come in near 1 million metric tons (39.4 million bushels).  Soybean commitments should add up to around 50 million bushels with wheat sales at 16.5 mbu.
   # Egypt was forced to cancel its latest wheat tender after having it matched with only one offer.  Sellers are not enthusiastic to deal with Egypt after country officials chose to set ergot fungus tolerance levels at zero for all wheat imports.  
   # Crude oil prices dropped after the weekly stocks report found U.S. inventories rising by 2.3 million barrels when a build of 1.2 million was expected.  U.S. crude exports have been running strong but there remains worry that domestic consumption cannot keep pace with production.

***** Live cattle futures down $0.90 as feeders finish lower by $0.90 to $2; hog futures up $0.12 to $0.80. *****

   # Cattle futures headed lower after a better start.  Early cash deals have been made at disappointing levels this week and cutout values were taking on a weaker tone around midday.  Bulls do not have much to be excited about now that the approaching holiday weekend will mark the beginning of the end for summer grilling season.           
   # Hog futures were building on technical momentum while they had little support from the fundamentals.  The midday USDA report had trades negotiated in the Western Corn Belt marked down $2.24 to a $58.09 average.