AgriVisor Morning MarketWatch

Wednesday, December 28, 2016
***** Corn futures down 2 to 2 3/4 cents; soybeans off 4; Chicago wheat off 4. *****

   # Soybean futures were showing some follow-through before turning weaker at 7:00am central.  Active fund positioning keeps soy trading volume robust for a holiday week.  
   # Higher soy futures in China helped the early up move for the U.S. complex, as did slightly higher palm oil prices in Malaysia.  
   # Soybeans started the week higher despite word that the Brazilians are starting to harvest what looks to be a phenomenal soybean crop.  Early results support record production potential.  Bulls were grabbing onto the idea that dry conditions in northeastern Brazil would spread elsewhere.  
   # Hedge funds pared their net corn short yesterday while adding some length to a bullish bean bet.  Money managers are estimated net-short corn by about 90,000 contracts and net-long beans by 110,000.
   # March corn futures were turned away by their 50-day moving average at the start of the week.  Yesterday’s Hi/Lo of $3.56 and $3.46 1/4 serve short-term resistance/support.  $3.41 3/4 is a recent low to watch before a $3.31 low comes into play on the continuous chart.  
   # The 6-10 day outlook turned a deeper shade of blue for the U.S. West in its latest run.  Cold temperatures are expected to descend on Illinois and west next week while the East Coast stays warm.  Rain or snow is in store for nearly all of the country during the outlook period.  
   # Overnight strength for the dollar keeps a lid on commodities.  The dollar index approaches new highs as traders price in interest rates that are rising as a result of an improving U.S. economy.  

***** Cattle futures fractionally mixed; feeders down $0.75 to $0.87; hogs higher by $0.30 to $1.55 with relative strength in the front of the curve. ***** 

   # Cattle traders are looking for some direction from the wholesale market, which has enjoyed a strong run to the upside over the past few weeks.  Buyers will do some repositioning of stocks post-holidays, so boxed beef prices could become a touch choppy.    
   # Hogs have made a small technical correction, digested an important fundamental report, and now look poised to move back up for a test of the recent $66.57 high for February futures.