AgriVisor Afternoon MarketWatch

Wednesday, September 28, 2016
***** Corn futures down 2 1/2 to 2 3/4 cents; soybeans off 5 3/4 to 7; Chicago wheat fractionally mixed. *****

   # Corn traders shrugged off huge flash sale.  1.58 million tons of corn (two-thirds for 16/17 delivery) were sold to Mexico.  Today’s sale was the fourth biggest daily corn on record.  
   # Flash sales of 133,000 tons of soybeans to China and 211,171 tons to an unknown buyer were reported.
   # Larger daily soybean sales are expected to flash across the screen tomorrow.  Chinese buyers are becoming more active ahead of their country’s National Day Golden Week holiday.
   # Thursday’s weekly export report is expected to show corn sales below last week but elevated on the year, something near 35 million bushels.  Soybean sales are estimated at 45 million and wheat near 15 million.
   # Reuters issued a look at historical outcomes of the September Grain Stocks report.  Deviations from the average pre-report trade guesses were 8.6 percent for corn and 14.3 percent for soybeans.
   # Heavy rains accumulated in the northern Midwest over the past few weeks swelled the Mississippi River by enough that some locks in Illinois and Missouri are expected to close temporarily.  
   # Ethanol production was up on the week by 0.8 percent and higher on the year by 4.9 percent.  Corn used was estimated at 101.2 million bushels, which is right on pace with the grind level needed per week to meet the USDA’s marketing year target of 5.275 billion bushels.  
   # Market participants await Friday’s Grain Stocks report.  Analysts expect corn inventories leftover from the 2015/16 season to total 1.75 billion bushels versus the USDA September estimate of 1.71 billion.  Soybean stocks as of September 1 are estimated at 201 million bushels versus USDA September 195.  Those being average estimates, the ranges of guess are wide, of course.
   # Oil futures rallied sharply on renewed optimism over OPEC production cut potential.  Speculation was that Iran would up production while the rest of the cartel scales back, maybe starting by the end of the year.         

***** Live cattle futures down $0.35 to up $0.50; feeders gain $1.17 to $1.45; hogs steady to $0.25 higher. *****

   # Cattle futures bounced out of Wednesday’s limit-lower close, helped by technical buying and eventually strength for boxed beef.  Cash deals are starting out near $103-$104 live.     
   # Wednesday was a choppy, lightly-traded day for hog futures.  Yet another new low was notched in for the December contract before it turned back higher for the session.  Cash and wholesale markets were mostly flat.