AgriVisor Afternoon MarketWatch

Tuesday, March 14, 2017
***** Corn futures up a penny; soybeans drop 6 3/4 to 9 cents; Chicago wheat down fractionally. *****

   # Rumors were circulating about a potential half million tons or so of U.S. corn purchased by the Chinese.  The news is so far unsubstantiated.  Chinese buyers are wary to buy U.S. corn because of marketing risks related to GMOs. 
   # May soybean futures closed under $10 for the first time since last fall.  The latest string of lower closes completes a 62 percent retracement of the fall-to-winter move up.  A stretch into outside of the Bollinger Bands and an RSI at 33 indicate near-term oversold condition.  
   # The market did some work to adjust the soybean/corn multiple.  The new-crop futures ratio is 2.58 compared to a 2.34 this time last year, so traders expect it to come in further to reflect an anticipated acres switch this season.  
   # USDA reported a sale of 120,000 tons of corn to Mexico for 2017/18 delivery.  The announcement is a positive signal regarding trade relations with our southern neighbor in a time rife with angst over a potential tariff war.  
   # The U.S. Northeast is bracing for a winter storm that could bring up to two-feet of snow in parts of Pennsylvania, New York, and Massachusetts.  Single-digit lows will be observed in the Midwest overnight before temperatures warm back up to above normal during the 8-14 forecast range.
   # Oil futures dipped lower for a sixth day with recent weakness coming on the back of ideas that non-OPEC production increases are more than offsetting OPEC output cuts.         

***** Live cattle futures drop $0.70 to $1.42; feeders give up $0.47 to $1.07; hogs up $0.32 to $0.60. *****

   # Cattle traders seemed convinced that last week’s $125-$126 cash deals were unlikely to hold up.  Action on the Fed Cattle Exchange tomorrow will help lend the market some guidance.             
   # Hog futures move higher behind strength in the wholesale market.  Belly cuts jumped another $5 to boost the carcass average by $1.46 on the day.