AgriVisor Afternoon MarketWatch

Friday, January 27, 2017
***** Corn futures drop 1 to 1 1/2; soybeans fractionally changed; Chicago wheat down 4 to 6 cents. *****

   # A mostly slow day for the grain trade to end the week.  Fresh news was limited and trading volume light.  
   # Weekend weather forecasts were assessed.  The U.S. dries out over the weekend and starts to warm back up, a trend that is expected to continue for the next 10 days or so.  
   # Scattered showers extending through next week for much of Brazil will delay some soybean harvest efforts.  The wet parts of Argentina stay dry until rain chances increase again on Tuesday/Wednesday.
   # Soybean meal futures managed to eke out small gains for the day.  The meal market remains supported by talk of lost production in Argentina.  The South American country a top meal export competitor, having supplied 45 percent of the world’s trade volume last year.    
   # Crude futures dropped $1 on today’s trade focus being placed on rising domestic inventories.  The bulls were out earlier in the week after seeing what looks to be compliance efforts on the OPEC production cuts.
   # Grain traders are showing some angst over President Trump’s back and forth with his counterpart in Mexico.  The Mexican president’s visit to the White House was cancelled in part due to talk of the border wall.  Mexico accounts for about 30 percent of unshipped corn export commitments.  
   # Corn futures lost ground on soybeans this week to have the new-crop multiple ending at 2.63.  Most are anticipating further compression for the ratio to price in a large expected U.S. acres switch this season.  Traders were even hearing talk of increased switching intentions in “I” states this week.   
   # Stock bulls took pause after the early-week run to Dow 20,000.  Fourth quarter GDP came in lower than expected at 1.9 percent and durable goods orders were soft.    
***** Cattle futures down $0.22 to $0.37; feeders fractionally changed; hogs rally $0.80 to $1.07. *****

   # Cattle futures were choppy ahead of the on-feed report.  Placements turned out to be nearly 10 points higher than anticipated at 118 percent of last year’s tally.  Marketings were about as expected at 107 percent.  Total on feed was even with last year at 10.605 million head.  
   # Cash hog and wholesale markets are not giving in as expected and help to support futures.  April hogs rebounded after approaching oversold territory early in day but settled short of their 20-day moving average.