AgriVisor Afternoon MarketWatch

Wednesday, November 16, 2016
***** Corn futures down 2 3/4 to 3 cents; soybeans off 2 to 3 3/4; Chicago wheat lower by 2 to 4. *****

   # The soy market weakened on news that Brazilian beans were dropping to meet U.S. export values, the same also true for soyoil out of Argentina.
   # A sale of 165,000 tons of soybeans to China was announced on this morning’s daily export reporting system.  
   # Weekly export sales data are due out tomorrow morning.  Trade guesses have new corn sales falling slightly on the week to 0.9-1.2 million tons, soybeans up to 1.2-1.5 million, and wheat down to 0.4-0.6 million.  
   # China could begin making forward soybean purchases from Brazil in larger quantities as the South American growers take on less concern over growing conditions.  
   # NOAA has issued a La Nina Advisory after observing conditions that are ripe to produce further cooling in the Pacific Ocean.  Australian meteorologists say “only one of eight models suggests the Pacific may briefly reach weak La Nina levels towards the end of 2016.”
   # Ethanol production was up on the week to just more than 1 million barrels of average output per day.  Corn grind was estimated at a robust 107 million bushels versus 101 needed per week to meet the USDA’s 5.275 billion bushel goal for the marketing year.  
   # Fund traders are estimated to hold a net corn short about 40,000 contracts of corn while remaining long a bit more than 100,000 soybeans.  Managed money is thought to be net-short wheat by about 
   # Dollar strength was the story of the day as far as outside markets were concerned.  The spot dollar index reached a high not last achieved since 2003.  Dollar gains are coming both on the back of improved U.S. economy sentiment and market pessimism for countries abroad.   

***** Live cattle futures jumped $1.67 to $2.72; feeders higher by $1.92 to $2.30; hogs gain $1.27 to $1.90. *****

   # Cattle futures rallied behind improved cash market expectations.  Wholesale beef gained despite retailers having already booked their needs for Thanksgiving and not yet began purchasing for the year-end holidays.  
   # Hog futures gained on expectations that the cash market can carve out a bottom.  Bears will suggest that pork cannot keep up with the current pace of marketings and that futures will do the work to meet cash values instead of the other way around.