AgriVisor Afternoon MarketWatch

Thursday, October 20, 2016
***** Corn futures down 6 1/2 cents; soybeans off 6; Chicago wheat down 2 to 3 1/4. ***** 
   # Grains took a step back after the morning technical rally fizzled.  December corn traded above its 100-day moving average for the first time since June, but the bulls did not take advantage of the development.  
   # Grain traders once again shrugged off a strong export sales report.  Corn sales were more than 1 million tons and much better than anticipated.  New soybean bookings were nearly double the expected total at 2.01 million tons; soymeal sales also robust at 398,000 tons.  The bears would suggest that high weekly totals are already baked into aggressive export targets from the USDA.
   # A soybean sale flashed across the daily report system, too.  192,000 tons of soybeans were sold to an unknown buyer.  Wheat also showed up on the system, a sale of 114,000 tons, part soft white and part hard red spring.  
   # The 6-10 day outlook turned wetter for the heart of the Midwest.  Higher rainfall chances spread further east than they had been in previous runs.  The rest of October and the first part of November look to run much warmer than average.  
   # A better turn for weather in South America has been observed this week.  Much of a dry Mato Grosso is finding relief from dry conditions.  The driest spots in northeast Argentina should also receive rains in the coming days.  
   # Outside markets were not supportive of the grains today.  Oil futures tumbled on what traders credited as profit-taking.  The dollar index rallied after comments from the European Central Bank president sent the euro reeling.  

***** Live cattle futures up $3; feeders higher by $2.70 to $4.02; hogs down fractionally. ***** 

   # Sellers were hesitant to press cattle futures further at the start, so some early short-covering efforts snowballed into a limit-up day.  Wholesale averages were lower again while cash sales were being booked at $154 dressed.     
   # More cash weakness for the hog markets limits what could be a correction for the board.  Futures maintain some support while they hold a discount to the cash.