AgriVisor Afternoon MarketWatch

Tuesday, March 21, 2017
***** Corn futures down 1 3/4 to 2 1/2 cents; soybeans up 2 to 4 3/4; Chicago wheat down 2 to 3/4; KC wheat drops 5 1/4 to 7. ***** 

   # Monday’s bearish outside day for corn futures brought out the technical seller today.  May corn reached to a new low for March.  The nearby contract has little else in the way of technical support before $3.50.
   # Funds were estimated sellers of a little more than 5,000 contracts of corn while being a small buyer of soybean futures.  The traders are quickly turning bearish the grains after starting out March with friendly positions.  
   # Wheat was the wheat link with Kansas City futures leading the way lower on expectations of rain coming to the Southern Plains.  Both maps for the 6-10 and 8-14 day outlook periods are shaded with deep green throughout the region to reflect a forecast for above-average precipitation totals. 
   # A group of analysts out of South America issued an estimate for Brazil’s soybean crop at 111 million tons.  USDA analysts recently upped their estimate by more than expected and that was only to 108 mt. 
   # Farmers in the South have started putting corn in the ground with Texas estimated at 31 percent planted.  The national Crop Progress reports will start to be issued on April 3rd.    
   # Corn is giving back some ground on soybeans that it gained earlier in the month.  The new-crop futures multiple is 2.60 versus 2.36 this time last year.  New predictions are coming out that peg corn acres higher than the previous consensus of 90 million.   
   # Crude oil futures gave up small early-session gains as traders liquidate longs to get ahead of sentiment that is turning increasingly bearish because of building U.S. inventories.  Market participants are starting to spend more time debating over whether or not OPEC is likely to extend its production cut agreement into the second half of the calendar year.  
   # The Dow and S&P stock indices were each down by about one percent today as some investors were seen exiting their “Trump trades.”  Bank and healthcare stocks led the way lower with market participants having uncertainty over potential changes to financial regulation and the Affordable Care Act.  

***** Live cattle futures gain $0.92 to $1.25; feeders rise by $0.17 to $0.82; hogs down $0.65 to $1.07. ***** 

   # Brazilian beef sellers are under fire after an investigation discovered bad meat being sold over the past few years. Several countries have enacted or are considering implementing import restrictions on meat from the country.  Traders wonder if the situation will lead to incremental gains for U.S. beef export demand.       
   # Hog futures were lower behind weakness in the pork market, which was itself pressured by a $5.50 drop for belly cuts.  The nearby futures contract has dropped in five straight sessions and has slipped below its major moving averages in the process.