AgriVisor Afternoon MarketWatch

Friday, October 28, 2016
***** Corn futures down 2 1/2 to 3 cents; soybeans off 11 3/4 to 13; Chicago wheat drops 5 to 6. *****

   # Nearby soybean futures were turned away from technical resistance at $10.20 while the most-active January contract returned back inside its Bollinger Bands and ultimately settled under its 100-day moving average.  A move lower would have January beans testing $10, which roughly coincides with 38 percent retracement of the recent move up.  
   # First Notice Day for November soybean futures is Monday, so traders will be watching for potential delivery intentions.  
   # Brazil’s real currency was weaker against the dollar today, taking a step back after being on a straight path higher since the beginning of October.  The real strength has been a market positive for U.S. soybean prices, as it makes Brazil’s beans relatively more costly to world buyers.
   # Soyoil futures were back higher today with the help of stronger palm oil prices.  Traders expect top-buyers like India to become more active purchasers of palm oil in the coming months.  
   # Argentina is drying out after heavy rains over the past few weeks caused widespread flooding.  Five inches or more fell throughout the Cordoba region this week.  Totals of up to 15 inches have accumulated in eastern Argentina to threaten wheat quality and delay row crop plantings.
   # Oil prices were lower as OPEC producers currently meet in Vienna.  Iran seems to have no interest in agreeing to a production freeze deal.    
   # U.S. stocks were choppy as trades digested this week’s economic data, including today’s GDP report that estimated third quarter growth at 2.9 percent.  The number was better than expected and combined with another couple of favorable readings on the economy to lead traders to believe that the Federal Reserve is now more likely to hike the main lending rate before the year is out.   

***** Live cattle futures steady to $0.80 lower; feeders drop $2 to $2.52; hogs up $1.37 to $1.77. *****

   # Cash cattle sales were being booked at another $1 on top of the $103-$104 paid earlier in the week, helping to pull along futures.  Wholesale beef averages gained by more than $1 as well.  
   # Hog futures continue their rebound on ideas that cheaper prices will spur demand into the fall.  Improving packer margins keep the slaughter pace elevated and producers are helping out by being aggressive marketers, maybe bringing forward the point of peak production this winter.