AgriVisor Afternoon MarketWatch

Wednesday, October 26, 2016
***** Corn futures up 4 to 4 3/4 cents; soybeans gain 17 1/2 to 19 1/4; Chicago wheat higher by 4 1/2 to 7 1/4. *****

   # Soybean futures made a strong technical move on the session, the November contract closing above $10 for the first time in two months.  $10.20 is a key high with the 100-day moving average at $10.13 to provide a test of resistance before that.  
   # December corn found a few buyers above its 100-day moving average today but settled below the mark.  $3.59 1/4 is a high from last week’s bearish reversal to watch. 
   # No daily grain export sales announced today, but tomorrow morning will feature the weekly sales report.  New soybean booking could exceed last week’s strong total of 2 million tons.  Traders expect to see corn sales near 1 million tons, or about even with last week.
   # Traders were talking about China’s potential interest in Brazilian soybeans should the U.S. market continue to rally.  Daily trade activity will be closely examined for a read on the mood of Chinese buyers.    
   # Soymeal was the leader of the complex for a change, the December contract jumping 3.5 percent to meet its 200-day moving average.  The product is moving higher on improved trade prospects.    
   # The driest areas of Brazil have rains on the way at the end of the week.  Farmers there are mostly ahead of schedule on row crop planting efforts.  Argentina should start to dry out over the coming couple of days to allow farmers to jump back into their planters.  
   # WTI crude futures were back below $50 per barrel as doubts formed over OPEC and Russia’s ability to follow through on a deal that would limit oil production.
   # Stocks were choppy as the market may be taking on increased volatility ahead of the U.S. election.  Some traders may also be approaching the equity space with some hesitancy ahead of the Federal Reserve’s December interest rate discussion.  

***** Live cattle gain $0.32 to $0.50; feeders up $0.42 to $1.27; hogs flat to $0.42 lower.  ***** 

   # Cattle futures followed the cash market higher.  Live sales were reportedly being booked at $103-$105.  Beef cutout averages were barely changed on the day to leave choice at $182.31, select at $168.45.
   # Hogs futures lost steam after a three-session correction.  The December contract faces technical resistance from the October 13 high of $44.92.