AgriVisor Morning MarketWatch

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

   # A low-volume, relatively news-less trade for the grains overnight.  Harvest progress dampens buyer enthusiasm.  Some traders opting to sit on the sidelines ahead of Friday’s Grain Stocks and Small Grains reports.  
   # Soybean bulls look to take advantage of Tuesday’s reversal out of session lows.  The day’s $9.53 1/2 high stands in the way before November futures would reach more formidable resistance from the month’s $9.94 high.
   # Tuesday was a wet day for the Eastern Corn Belt.  Light rainfall totals also fell across northern Wisconsin and most of Michigan.  The same regions have the highest chances for rains again today.  The outlook shifts for the 6-10 day period with the map leaning wetter west, drier east of central Illinois. 
   # Improving U.S. export prospects are giving a small lift to wheat prices.  Buyers are expected to turn to the U.S. in their efforts to find quality milling wheat. Wheat exports are currently up 25 percent over last year.
   # Traders await any possible export announcements that would come when the USDA reports sale of more than 100,000 tons each day at 8:00am central.  China was a small buyer of soybeans yesterday and will be expected to make some additional deals ahead of the country’s October 1 National Day holiday.
   # U.S. grains suffer from some slight spillover weakness coming from international markets.  Grains finished the session lower on China’s Dalian exchange.  Palm oil futures fell in China, as they did on the Malaysia Derivatives Exchange.      
   # Outside markets are quiet overnight.  Dollar futures trade flat and are of little influence to the grains; however, oil futures are making a rebound to become less of a headwind for the commodity space than they were on Tuesday.  

***** Live cattle futures start with expanded limits of $4.50; hog futures look to benefit from a technical rebound.  *****

   # Cattle futures traded limit lower on Tuesday on ideas that beef production will hold stubbornly high through the fourth quarter of the calendar year.  Showlists are longer this week to add to the negativity.  
   # Wholesale pork prices dropped on Tuesday but packer margins remain elevated.  Weights and slaughters run high and keep cash prices on the defensive.  Friday’s Hogs and Pigs report will provide some guidance to the futures trade into next month.