AgriVisor Afternoon MarketWatch

Thursday, September 01, 2016
***** Corn up 7 to 9 1/2 cents; soybeans flat to up 2; Chicago wheat gains 6 1/4 to 7 1/4.​ *****

   # December corn futures finished higher on a correction out of oversold territory.  The RSI registered 37 on the close.  December corn is still behind its 10- and 20-day moving average.  More formidable chart resistance is intact at the August 19 high of $3.44 1/4.
   # The weekly export sales report was just a touch disappointing relative to expectations, but it was followed up by another pair of daily sales, 129,540 tons of corn sold to Mexico and 147,000 tons of soybeans sold to an unknown buyer.
   # Year-to-date soybean export commitments stand at 1.97 billion bushels for the 2015/16 season versus the USDA target of 1.88 billion.  Analysts suggest a revision of the September export goal would offset a potential new-crop yield bump to keep carryout about flat.  
   # The 2015/16 trade season will end with Mexico the top buyer of U.S. corn, taking over the number one spot from perennial leader Japan.  Exports to Mexico currently stand higher by 16 percent on the year while shipments to Japan down 12 percent.  
   # Reuters reported the Japanese Ministry of Ag’s decision to re-allow the importation of U.S. white wheat after previously barring shipments due to worry about their inclusion of GMO’s.  
   # Parts of the upper East Coast received rain today, as did the Florida Panhandle, where Tropical Storm Hermine will make landfall early tomorrow.  Meteorologist have upped the likelihood that Hermine will become a hurricane.  
   # Friday kicks off an expected dry stretch for the Midwest.  Chances for rain return by Tuesday or Wednesday of next week.  Temperatures are expected to warm up through the first half of September.
   # U.S. crude prices dropped as fund traders liquidated long positions due to eroding positive sentiment.   

***** Live cattle futures down $2.57 to $3; feeders off $3.22 to $3.82; hogs up $0.47 to $0.52. *****

   # Beef export sales were down on the week but still run more than 10 percent higher than a year ago.  Strong export demand has not been enough to combat sluggish domestic consumption.             
   # Hog futures held on to moderate gains despite the cash market continuing in the opposite direction.  Slightly improved strength for wholesale pork prices has triggered some optimism.