AgriVisor Afternoon MarketWatch

Friday, November 11, 2016
***** Corn futures off 2 1/2 to 3 1/4 cents; soybeans down 10 1/2 to 12; Chi wheat steady to 1 3/4 lower, KC wheat up 1 1/2. ***** 

   # The soy complex charged higher overnight, only to gap lower at the 8:30 hard open.  Traders were commenting on rumored regulatory action taken against a bullish spec fund in China, erasing the supportive influence that had been higher Chinese soy prices early this morning.  
   # December corn futures dropped 8 1/2 cents on the week with January soybeans giving up 4 3/4 and December Chicago wheat down 11 1/4.
   # Soybean futures made a bearish weekly reversal and failed to regain support from the $10-mark.  January futures have a retracement target at $9.75 to keep an eye on. 
   # Corn futures never benefited from any of the buyer enthusiasm that popped up briefly for the soy complex after Wednesday’s USDA report featured a surprise yield bump.  The national corn yield average is pegged at 175.3 bushels per acre, which produced a 15.226 billion bushel crop that is currently projected to leave 2.4 billion bushels left over at the end of the 2016/17 marketing season.   
   # Cotton futures failed to hold onto substantial gains that were achieved at the session start. The fiber rallied after the election results as traders placed bets on President-Elect Trump following through with promises to restrict trade with China, the world’s top textile supplier. 
   # Showers were scattered throughout Brazil this week, helping out farmers where their soybean crops had been planted in dry soils.  Much of Argentina dried out this week after heavy rains were a detriment to producers in October.  Both Brazil and Argentina are currently expected to produce bigger corn and soybean crops this season.  
   # The dollar strengthened further on comments from Fed Vice Chairman Fisher that were taken to suggest that a December interest rate hike is increasingly likely.  

***** Live cattle futures gain $0.80 to $1.10; feeders up $0.35 to $0.70; hogs down $0.12 to $0.25. *****

   # It was a technical trade for cattle futures at the end of the week as market participants waited to see if cash activity would pick up.  Bulls have the short-term edge after pulling the February live contract above its 10-session moving average.  $106.82 is a chart high to watch.  
   # Hog futures were choppy with the expected spreading action helping to define the day’s trade.  Cash markets were defensive, wholesale cutout average unchanged.  Traders enter next week with an eye on pre-Thanksgiving buying.