AgriVisor Afternoon MarketWatch

Tuesday, September 06, 2016
***** Corn up fractionally; soybeans close higher by 5 3/4 to 9 1/4 cents; Chicago wheat down 2 to 3. *****

   # A dry weekend went a long way in putting the Midwest corn crop close to harvest. There is some slight worry about the next few weeks turning cooler and wetter for the Corn Belt as disease is showing up.
   # Soybean futures were supported by a strong export inspections report.  The weekly soybean shipments tally was 45.3 million bushels versus 33.9 mbu the previous week.  Corn shipments were also strong and up on the week at 57.8 mbu.  
   # A strong run for corn and soybean shipments at the end of the marketing year will likely show up in upward-adjusted export estimates from the USDA.  Analysts expect that corn exports for 2015/16 will rise by about 10 million bushels while soybean exports climb another 50 million.   
   # Egypt’s zero-tolerance stance on ergot fungus was re-affirmed this week with the country’s health ministry matching the ag ministry with similar regulatory action.  Wheat exporters are faced with the dilemma of deciding whether or not to offer wheat to the world’s top buyer knowing that their cargos could end up being rejected.     
   # A weak dollar was generally supportive of the commodity space.  Strong economic data out of Britain rallied the pound while a disappointing reading for U.S. service sector health also helped influence the move.  

***** Live cattle futures down $1.55 with feeders off $2.35 to $3.87; hog futures drop $0.62 to $1.82. ***** 

   # Cattle traders are not optimistic about the prospects for beef demand post-Labor Day.  The silver lining in a currently-bearish fundamental environment is that a good deal of marketings have been put forward and should allow production levels to decelerate at a quicker-than-expected pace this fall.  
   # More of the same for hogs with wholesale prices firming while cash drops.  December futures gapped lower at the open and stand just about 50 cents off the contract low.