AgriVisor Afternoon Marketwatch

Wednesday, November 30, 2016
***** Corn futures closed fractionally lower; soybeans 8-10 lower; Chicago wheat 4-6 lower. *****  

   The soy complex continued to slide with long liquidation driving the move lower in the wake of the recent surge of nearly $1.  That in turned kept pressure on other grains, especially with the stronger Dollar.
   The most significant news of the day is the apparent OPEC agreement to curtail output in 2017.  That lifted crude oil prices nearly $4, but had little impact on the direction of grains, although it’s fundamentally good for corn and soyoil.
   Deliveries against expiring Dec. futures may have been a little positive except for K.C. wheat.  814 contracts were delivered against K.C. futures, but only 2 were delivered against Chi.  No corn was tendered for delivery, with only 3 soymeal and 1315 soyoil; all a little positive.
   123,000 tons of soybeans were sold to China as reported on the USDA system.  But it’s said a lot more of the activity has shifted to South America, especially with merchants readily offering Feb shipment out of Brazil. 
   Export sales are out in the morning.  The trade is looking for 300-500,000 wheat and 900-1.2 mmt. of corn.  Soybean sales are expected to be 1.0-1.4 mmt., with soymeal expected to be 120-300,000 tons.  
   Rain is expected to help resolve some dry issues in parts of the Southeast, but the southwestern parts of the G. Plains could remain somewhat dry.  Generally, a winter pattern is setting in across the Corn Belt.  S. American weather is generally good, but there are some dry pockets starting to develop in the 3 southern Brazilian states. 
   The Dollar moved higher on positive economic news.  U.S. household incomes and spending improved in October.  And a private job report indicated good growth in November.  Analysts are increasingly confident of seeing another small policy tightening by the Fed in December.

***** Live cattle futures ended $1.65-$0.90 higher; feeders were $1.20-$1.40 higher; hogs were $0.40-$0.65  higher. ***** 

   # Wholesale beef ended mixed/higher for the day with choice at $189.95.  Cash cattle are firming this week, with a live trade in the $113-$114 range.  The firmer tone in the cash markets is providing the energy for the strength in fed cattle futures.  Feeders are following, especially with the soft grains.  
   Wholesale pork prices were soft again Wednesday, with the #2 cutout at $73.89.  Cash hog prices are holding firm with very good packer margins, although the number of hogs entering the pipeline is easily meeting packer needs.