AgriVisor Afternoon MarketWatch

Friday, October 07, 2016
***** Corn futures down fractionally; soybeans down 1 3/4 to 2 1/4 cents; Chicago wheat off 1 to 2 1/2. *****
   # Government officials will be off for Columbus Day on Monday.  The markets will still be open, but cash will not move.  
   # Traders have expected wheat exports to pick up as global buyers look to the U.S. for quality milling stocks.  Accumulated exports are up considerably on the previous year, but the sales pace could suffer if the U.S. remains the high-cost supplier.  
   # Brazilian officials have paved the way to allow imports of U.S. GMO corn after a drought-reduced second crop leaves feed users with dwindling, high-priced inventories in their domestic market.  
   # December corn futures had an inside day today, remaining also above the contract’s major moving averages.  On balance volume is slipping fast than price and the latter may be poised to catch up with the former.  
   # Yesterday’s rains kept many out of the fields this morning.  The weekend is dry for most in the Midwest.  A brief cold spell is expected before temperatures warm up again in the 6-10 day timeframe.  
   # Market participants are looking for possible grains strength to kick off once farmers are through the half way mark with harvest, which may occur by the middle of next week.  Price seasonals show the tendency for corn and soybeans to rally into the beginning of November.  
   # Market reaction was somewhat muted in response to the September jobs report.  A disappointing set of numbers included nonfarm payrolls increasing by 156,000 versus a +175,000 consensus.  The unemployment rate rose by one-tenth of a point to 5 percent.  Odds of a November rate hike from the Fed were lowered but a December change is still very much on the table.  

***** Live cattle futures down $0.05 to up $0.12; feeders flat to $0.35 lower; hogs down $0.57 to up $0.45. *****

   # Cattle futures traded flat behind a steady wholesale market and inactive cash trade.  The October contract is having trouble building momentum after the early week rebound and is being turned away from its 10-day moving average.                 
   # More spreading for hog futures on Friday to lead to a mixed close.  The market is sure to remain on the defensive as long as slaughters and weights are still trending higher.