AgriVisor Afternoon MarketWatch

Tuesday, November 01, 2016
***** Corn futures down 4 to 5 3/4 cents; soybeans off 17 to 18 1/2; Chicago wheat lower by 2 to 2 1/4. *****

   # Grain traders have observed the loss of technical momentum over the previous few sessions and used today’s session to take profit on recent gains.  Next week’s election and crop report present added volatility risk that some are choosing to avoid.  
   # December corn futures gave up support from their 100-day moving average and from $3.50.  Downside Fibonacci retracement targets come into play at $3.42 1/4 and $3.37.
   # January soybean futures gave up the $10-mark that puts the contract back near its 200-day moving average.  Last week’s $9.80 low is a point of support to keep an eye on.
   # Monday’s Crop Progress numbers were fully anticipated with corn harvest pegged at 75 percent complete, soybeans 87 percent cut.  Winter wheat was 86 percent planted versus 88 percent being the five-year average.
   # The daily export report system announced 212,344 tons of corn sold to Mexico.  No soybean sales of more than 100,000 tons to report today.
   # South Africa is projected to import less corn as relief from drought may allow that country’s crop to produce 65 percent more bushels this season.
   # The current 2016/17 USDA forecast for corn production in Brazil is 83.5 million tons, or 25 percent more than a year ago.  Most of Brazil still maintains a deficit on soil moisture as farmers, but analysts will find it too early to make any significant markdowns to output potential at this point.      
   # Weaker Apple Inc shares were a drag on the S&P 500 index after the tech company issued a disappointing earnings report.  ADM shares were up more than 7 percent in late afternoon trading after that company reported earnings numbers that featured 35 percent profit growth.   

***** Live cattle futures rally $1.97 to $2.32; feeders gain $4.32 to $4.42; hogs drop $1.50 to $1.92. *****

   # The downturn for cattle futures was short lived and the board was able to rally back toward last week’s highs.  Speculators are seen building length back into their long cattle positions, betting that the summer price slide was able to do enough to price in what are still a negative set of supply and demand fundamentals.      
   # A technical rebound for hog futures ran into fundamental selling on Tuesday as traders priced in slaughter numbers that were up on the week and still well above the year-ago levels.