AgriVisor Afternoon MarketWatch

Tuesday, September 20, 2016
***** Corn up 2 3/4 to 3 1/4 cents; soybeans higher by 16 to 17 1/4; Chicago wheat flat to up 2. *****

   # A delayed start to harvest in the Midwest is a storyline starting to gain some traction.  Wet weather is slated to return to the region late this week and may possibly stick around through the bulk of the next 14 days.  The already-wet northwest corner of the Midwest is forecasted to receive rains first.  
   # China showed back up on the daily sales announcement system, buying 110,000 tons of U.S. soybeans.  Traders there are back from taking their Mid-Autumn holiday and are making purchases ahead of China’s National Day holiday on October 1st.  
   # Analysts are starting to hone their estimates for the September 30 quarterly Grain Stocks report.  Final 2015/16 corn and soybean carryout totals will be produced from the numbers and will have a chance to flow through to the new-crop balance sheets on the September 12 WASDE report.
   # It was an outsized rally for soybean oil futures on the day with the most active December contract extending its two-day gain to 5.5 percent.  That commodity is benefitting from sustained strength in the Asian palm oil market.  
   # Stats Canada estimates confirm high potential for Canadian wheat production.  Projections for the Australian crop also continue to grow.  The world may be awash in wheat, but buyers are having a tough time securing high quality supplies for milling use.  
   # December corn futures settled over their 50-day moving average but stopped short of August and September highs of $3.43 1/4 and $3.44 1/4.  November soybean futures crossed $9.90 to make a new high for the month but trade under the August top of $10.20.
   # The dollar index was up against its 200-day moving average as the euro and pound dropped.  Currencies likely have an active Wednesday ahead of them as the Federal Reserve Open Market Committee meeting wraps up with a decision on whether or not interest rates will be bumped higher.        

***** Live cattle futures down $0.22 to $0.30; feeders off $0.12 to $0.95; hogs up $0.62 to $0.90. *****

   # Cattle futures were choppy as boxed beef prices were flat and the cash trade remained inactive.  December live futures broke under yesterday’s low but held support from the contract’s 20-day moving average.  
   # Hog futures held gains with higher wholesale pork prices offsetting further weakness in the cash market.  USDA’s Midday pork report had the carcass cutout average up $0.56 to $80.83 while direct hogs were mostly $1 lower.