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AgriVisor Afternoon MarketWatch

 
Friday, February 10, 2017
***** Nearby corn futures up a nickel; soybeans higher by 4 to 8 1/2 cents; Chicago wheat gains 5 1/2 to 7. *****

   # Funds found yesterday’s crop report to have featured little in the way of new bearishness and used Friday to continue adding to corn/bean net-longs and covering wheat shorts.
   # Soybeans rallied despite futures ending lower on China’s Dalian exchange Friday.  U.S. soyoil did not join the party after Asian palm oil futures made a weaker close.    
   # A sale of 140,000 tons of soybeans flashed across USDA’s daily reporting system.  The deal was made with an unknown buyer for 2017 delivery.  China remains an active buyer of beans, but the majority of purchases are now being made from Brazil.
   # New-crop CZ17 futures finished a quarter-cent short of $4.00.  The contract has not traded above $4.00 since July 28th.  The 2016 summer peak was $4.22 3/4. 
   # Meteorologists still expect this week’s cold spell to be followed up with warmer than average temperatures in most of the Midwest.  NOAA’s 6-10 day map leans dry while the 8-14 day turns wet.  
   # Much of the major growing regions in Brazil have been receiving abundant rainfall over the past two weeks.  Wet weather has delayed second crop corn plantings after disrupting an otherwise early start to the soybean harvest (now about 15 percent complete). 
   # Growers in central Argentina are concerned over a forecast calling for more showers to follow a week of heavy rains.  Argentina’s crop potential was cut severely after flooding late last season.   
   # A pocket of severe drought in the Midwest has shrunk in size recently but the region remains dry.  The U.S. Drought Monitor shows ‘Abnormally Dry’ conditions stretching throughout most of Missouri and creeping into Illinois and southern Iowa. 
   # Higher energy prices helped pull stock indices up.  Crude rallied on further confirmation that OPEC members were making the promised cuts to production.   

***** Cattle fundamentals turning less friendly as hogs face pressure from chart sellers. *****

   # Further weakness for the wholesale market weighed on cattle futures to end the week.  Choice cuts dropped $3 on the week, select down $4.  April live futures made a new low for the month as they slipped below their 50-day moving average.              
   # Lean hog futures are running into technical selling after reaching into overbought territory earlier last week.  On the fundamental side, packer margins are high enough to keep hog slaughter high; demand is keeping up thus far.            
 

  SYMBOL IN EVEN SQUARE