AgriVisor Afternoon MarketWatch

Thursday, October 27, 2016
***** Corn futures up 3 to 3 1/2 cents; soybeans higher by 2 to 4 1/4; Chicago wheat up 1 1/2 to 3. *****

   # An edible oil rally has helped to spark soy gains in October as traders see Asian palm oil stocks shrinking further. But, it was soymeal that led the complex higher for a second day in a row as spread unwinding left soyoil futures weaker on the session.
   # Recent flooding in Argentina may be cause for some speculative soymeal buying. Argentina is the world’s top trader of soymeal, accounting for nearly half of total exports.  Some would say it is much too early for Argentina weather worry at this point, with the country’s farmers not usually making much soy planting headway until November.       
   # When farmers in Argentina do return to the field, they will be switching acres from soybeans to corn, but not by as much as previously anticipated.  After backpedaling on his promise to cut soybean export taxes by 5 percent, Argentina’s president this week said that the tariff reduction would come, but only for the country’s northern provinces.  
   # Weekly export sales were robust yet slightly smaller than anticipated for corn and soybeans.  A few daily sales were reported: 396,000 tons of soybeans sold to China and another 129,000 tons to an unknown buyer; 204,000 tons of sorghum headed to China.  
   # A South Korean importer will potentially source a portion of its latest corn purchase from the U.S.  The tender was notable in that it included offers from China, which were passed over by the buyer.  
   # The International Grains Council issued its latest Grain Market Report.  Analysts for the group upped their estimate for global corn production slightly, to 1.04 billion bushels.  Citing better prospects for crops in the U.S. and Brazil, the soybean output projection was lifted to 332 million tons.  
   # NOAA’s 6-10 day outlook turns much warmer than average for the bulk of the country.  The map leans wetter than normal in the Western Corn Belt, drier in the East.  Confidence rating for the forecast is 4 out of 5.  

***** Live cattle futures up $0.40 to $1.07; feeders flat; hogs up $1.20 to $1.40.  ***** 

   # An improved outlook for the cash market helps to support cattle futures into the end of the week.  The December contract’s move above its 50-day moving average helps to maintain a friendlier technical outlook; a next point of resistance exists with the September 22 high of $108.90.
   # Cash hogs remain unsteady, but futures are making a correction that pulls the curve closer to the cash.  The wholesale pork average was little changed on the midday report.