AgriVisor Morning MarketWatch

Thursday, September 01, 2016
***** Corn futures 1 1/2 higher as soybeans trade up by 2 to 3 cents; Chicago wheat up a nickel. *****

   # Grains trade light volume overnight, mostly higher, but not by as much as before a somewhat disappointing export sales report was released. 
   # New corn sales for the 2016/17 season were on the light side at 647,500 tons, but old-crop bookings of 214,100 tons were solid.  Soybeans sales were 107,500 old and 1.48 million new, above expectations.  Wheat sales were light at 279,400 tons.  
   # U.S. grains are currently very competitive in the world trade market.  Exporters in the U.S. have an edge over South American traders on both corn and soybeans.  Wednesday’s flash wheat sale was a sign of progress for competitiveness in that market, but U.S. wheat remains underpriced by Black Sea supplies.    
   # Weather watchers are keeping an eye on Tropical Storm Hermine, which is expected to make landfall in Florida early tomorrow morning.  The storm is expected to bring 10 inches or more to the East Coast over the next five days.
   # The next five days are expected to be dry for most of the Midwest.  The back half of the two-week forecast includes higher precipitation chances for the Corn Belt.  Temperatures should warm up for most of the country over the next several days.  
   # Eight USDA agency offices in five states were closed early this week due to anonymous email threats.  The closed locations were outside of the Midwest and included those that housed the Forest Service and the Food Safety and Inspection Service, among other agencies.  
   # The USDA’s daily look at cash prices paid to farmers by country elevators tallies a central Illinois corn average at $2.88 with soybeans at $9.59.  The Interior Iowa numbers are $2.70 corn and $9.09 soybeans.  
   # Stocks, bonds, and currencies trade quietly as market participants wait for tomorrow’s jobs report.  Economists look for 180,000 new jobs to have been added in August.        

***** Cattle futures look to close the week with choppy trade action; hogs have some upward momentum to benefit from. ***** 

   # No follow-through to the upside on Wednesday after a strong Tuesday for cattle futures.  Weaker cash deals were a cause of pessimism early in the week; much more cash activity is not expected ahead of the long holiday weekend.    
   # There is not much bullishness to report regarding hog fundamentals, but traders seem to be taking on the mentality that prices have fallen to low enough levels that they will start to spur better demand.