AgriVisor Afternoon MarketWatch

Monday, January 23, 2017
***** March corn futures down 1/4 cent, December up 1/4; Soybeans off 3 1/2 to 9 3/4 cents with relative weakness in the front; Chicago wheat gains 1 to 5.  ***** 

   # Corn futures remain resilient as soybeans display corrective action at the start of the new week.  Fresh fundamental news is somewhat scarce.
   #​ Driver of the day was weekend weather activity in South America.  Growers in Argentina received rain where they needed it (South) and stayed dry where they wanted to (the rest of the country).  Rain fell in Brazil to help provide some moisture ahead of the second crop corn season.
   # Soybean futures face some technical selling after registering short-term overbought at the end of last week.  The nearby contract finds potential support from last week’s $10.52 low with additional minor support at $10.37.
   # Farmers in Brazil are estimated to have planted about three percent of their second corn crop.  Conditions are mostly favorable throughout Brazil’s major growing regions but there remains some slight worry over dry conditions in the East potentially creeping west and south.  
   # Rainfall totals of up to five inches accumulated in the driest areas of the U.S. Mid-South this weekend.  The Drought Monitor shows some shrinking of the affected region, but a large swatch of northern Alabama/Georgia is still labeled with the “Extreme Drought” classification.
   # Chinese imports of ethanol and distillers dried grains (DDGs) were down sharply last month.  Better margins have the domestic producer in China pumping out more of the fuel and feed stock.  Higher tariffs on the commodities also hinder the importer.    
   # Fund traders were buyers of corn, sellers of soybeans today.  Their estimated positions are net-short 45,000 contracts of corn and net-long 135,000 soybeans.  

***** Live cattle futures finish fractionally changed; feeders down $0.12 to $0.60; hogs drop $0.30 to $0.70. *****

   # Cattle futures were pressured on the start but rebounded to close well off of session lows.  Firmer prices on the midday boxed beef report helped stem losses.     
   # Weaker cash and wholesale markets put hog futures on the defensive.  Technical selling added pressure as the April contract settled under its 20-day moving average for the first time since December 5th.