AgriVisor Afternoon MarketWatch

Friday, February 17, 2017
***** Corn futures down 4 1/4 to 5 1/2 cents; soybeans drop 5 3/4 to 11 1/2; Chicago wheat lower by 2 to 6 3/4. ***** 

   # Nearby corn futures finished the week lower by 6 1/4 cents.  Soybeans drop 26 1/2 cents over five sessions.  Chicago wheat down 8 cents.  
   # Bullish soybean news related to Brazil fizzled out quickly at the end of the week.  Buyers liked the idea that the Brazilian farmer was going to be slow to sell soybeans and that the U.S. export program would benefit thusly.  The sheer size of Brazil’s soybean harvest potential puts a damper on any short-term enthusiasm. 
   # Corn sold off at the end of the week in part because of news that officials from Mexico will be heading to Central and South America to inquire about sourcing corn as an alternative to reliance on the U.S.
   # Soybean and soy product prices ended the week lower on China’s Dalian exchange.  Their most-active May bean futures contract ended weaker by one percent.  Malaysian palm oil futures dropped on pessimistic demand sentiment.  
   # Farmers were used the early-week rally to make some additional old-crop corn sales.  The U.S. farmer has about 60 percent of last year’s harvest sold.  Old-crop soybean sales have surpassed 80 percent.  
   # Weekly export sales were a touch disappointing for corn at 30.8 million bushels versus 38.3 million last week.  New soybean sales for 2017 delivery were a robust 32.7 million bushels.  Wheat sales were solid at 20.9 million.  
   # Chinese traders headed home for the weekend without booking any additional soybean deals, but Japan did agree to buy some corn from U.S. exporters.  The daily reporting system featured a sale of 194,000 tons of corn to our second largest buyer (behind Mexico).
   # March corn futures will open up next week with a test of their 20-day moving average.  The 200-day sits not far below the market at $3.67.  The intermediate trend remains positive but futures are now vulnerable to a break of the ascending channel bottom.  The $3.55 3/4 swing low and $3.45 1/2 lend potential support to CH17.    
   # The dollar index gained half a point as investors placed bets on an interest rate hike coming as early as March.      

***** Traders question the potential for strong follow-through after a Tuesday rally that pulled live cattle futures higher by $1.17 to $1.47; hogs up $1 to $1.60. ***** 

   # Pork prices gained behind another big surge for the bacon cuts.  Bellies were up $3.47 on the midday cutout report.  April hog futures trade between support and resistance from their 10- and 20-day moving averages.                          
   # Cash cattle deals booked near $120 were better than anticipated this week and helped encourage buyers in the futures market. Wholesale prices are rebounding after last week exhibiting the bearish signs of light trading activity and poor performance for the good cuts.