AgriVisor Afternoon MarketWatch

Wednesday, November 09, 2016
***** Corn futures down 12 1/2 to 13 1/2 cents; soybeans down 17 3/4 to 20 1/4; Chicago wheat lower by 7 1/2 to 8 1/2. ***** 

   # Wednesday started with markets working under the influence of Tuesday night’s election results, the grains pressured by an initial risk-off trade that followed Trump’s victory.  Outside markets settled, and so did the grains, until the crop report was released to put the hammer back down on grain prices.  
   # Dow Jones stock index futures traded a range of more than 1,000 points throughout the session, putting in a low late Tuesday night before charging back higher.  Investors ditched early concerns over the uncertainties related to a new presidential administration and focused instead on the potential shift toward pro-growth economic policy.    
   # USDA October corn yield surprised by rising to 175.3 bushels per acre from 173.4.  Big gains for the Dakotas helped bump the national yield number, as did a 1 bushel gain for Iowa, with that state reaching a 199 bpa average.  Illinois yield remained 202 bpa.  
   # USDA’s new bean yield estimate was well above the trade consensus, moving from 51.4 bpa to 52.5.  Higher yields were tallied in all states throughout the northwest Corn Belt.  The best state averages were Nebraska and Illinois at 62 bpa.  
   # Adjustments to corn and bean demand estimates included a 25 million bushel addition to the corn ethanol usage target, a 25 mbu addition to bean exports, and a 20 mbu reduction to bean crushings.  
   # The 6-10 day outlook is warm and dry across the country.  Chances for rain increase for a dry Great Plains region starting late next week.  Farmers in Brazil are welcoming of scattered showers this week.  Argentina continues to run too wet in most places.     

***** Live cattle futures up $0.22 to $0.87; feeders up $0.10 to $0.50; hogs down $0.22 to $0.42. ***** 

   # Cattle futures were able to buck some of the worry related to Trump’s victory and its uncertain impact on U.S. meat trade programs.  
   # Hog futures couldn’t get over the hump of some technical resistance, with little in the way of fresh and friendly fundamental news.