AgriVisor Morning MarketWatch

Thursday, December 01, 2016
***** Corn futures flat at the break; soybeans down 2 to 3 cents; Chicago fractionally changed. ***** 

   # A higher start for soybean futures before they turned weaker after 7:30, but all contracts still trade inside Wednesday’s ranges.  January soybeans will have resistance at up ahead at $10.52 3/4 and $10.65.  
   # Soybean export sales were a touch better than expected at 1.4 million tons, corn a little light relative to pre-report guesses at 761,600 tons.  New wheat sales totaled 483,500 tons.    
   # The 6-10 day outlook maps have turned wet and cold with the wet parts including snow potential.  Cold air moving across the northern half of the Midwest may help to support the development of snowy conditions beginning in the middle half of next week.  
   # Cooler temperatures come after the close of a very warm November.  Illinois ranged 3-7 degrees above normal through the month while parts of Iowa and further northwest recorded temperature anomalies of up to 13 degrees.  
   # Fund traders are estimated to be in the possession of a net corn short that is approaching 100,000 contracts again.  The managed money soybean long is thought to be near 115,000 contracts.  
   # Nearby WTI crude futures are up another $1 per barrel after OPEC confirmed that its members would target a 1.2 million barrel per day oil production cut next year.  Bulls say the deal paves the way for a quick move to $60 oil.   

***** Cattle futures supported by an improved cash trade; hogs enjoying spillover support from stronger outside markets.  *****

   # Cash cattle did trade up to $115 on Wednesday, as expected, and that should lend further support to the board.  The nearby futures contract currently trades with a premium of $4.25 to that $115 mark.    
   # Pork exports remain elevated enough to help clear the domestic market of some excess supply, but domestic demand will also have to do its part to work through a large amount of product.  Pork looks to face plenty of competition from beef in this new month of December.