AgriVisor Afternoon MarketWatch

Friday, September 16, 2016
***** Corn futures jump 7; soybeans gain 15 cents; Chicago wheat up 1 to 3.  *****
   # Another low-volume day for the grains featuring some short-covering ahead of the weekend.  Wet U.S. weather forecasts provided slight fundamental support.  Grains successfully shrugged off bearish action in outside markets.
   # A Friday rally for corn still left December futures down 4 cents on the week.  November soybeans dropped 14 1/4 while December Chicago wheat finished flat over the five sessions.  
   # A wet two-week forecast is friendlier to farmers in Brazil, where soils have stayed dry for some time.  The rain will help newly-planted corn and recharge soils ahead of the soybean sowing season.  
   # Brazilian feed users could turn to the import market to source corn after a dry season made for a short second crop there.  Conab projects potential corn imports of up to 1.5 million tons this year, some of which could come from the U.S. 
   # The South Americans will look to secure larger surpluses of corn by planting more acres to the grain this season.  Brazilian farmers will look to take advantage of relative corn price strength by planting more first-crop corn while those in Argentina are planting corn to avoid soybean trade taxes that are not coming down as expected. 
   # Exporters presented Egypt with no offers for the country’s latest wheat tender.  The top-importer needs wheat to satisfy food demand and will likely have to scrap its zero-tolerance ergot fungus policy in order to buy some of the grain.    
   # Wet weather has been in the way of U.S. farmers ready to harvest row crops but also lent some support to grain prices at the end of the week.  Two inches fell over a wide swath of Iowa overnight with even heavier totals collected along the state’s border with Nebraska.  Up to three times the normal amount of precipitation has fallen in northern Missouri over the past month.  
   # Little has changed on NOAA’s two-week maps that still lean warm and wet for the Midwest.  A high pressure system is expected to move through the center of Corn Belt this weekend and may provide a few dry days before water returns. 
   # The dollar index made a large jump to price in near its 200-day moving average.  Traders were weighing the continuation of loose monetary policy abroad against expectations for a 2016 rate increase here at home.  The Federal Reserve meets on September 20-21.   

***** Live cattle futures gain $0.92 to $1.07; feeders up $0.95 to $1.52; hogs settle higher by $0.32 to $0.62. ***** 

   # Cash cattle deals were registering in near $110 live, or about $5 higher than the previous week.  Beef cutout was flat values were flat on the midday report but had room to improve after better cash numbers started coming out.     
   # Hog futures enjoyed some spillover strength from a higher cattle market, but gains were limited by pessimism regarding the near-term production fundamentals.