AgriVisor Morning MarketWatch

Friday, March 24, 2017
***** Corn futures fractionally lower at the break; soybeans off 5 to 6 cents; Chicago wheat up 2 1/4 to 2 3/4. *****

   # Corn futures notch in another new low for the month but losses for the session are so far limited.  All of the soybean futures curve now trades below $10.  
   # Open interest increased by another 10,000 contracts for corn, 8,000 soybeans on Thursday.  Sluggish volume points to the seller not yet having the strongest of conviction.  This afternoon’s Commitments of Traders report from the CFTC will show us how the various market participants have positioned themselves.   
   # The latest runs of the 6-10 and 8-14 day NOAA models include additional increases to precipitation probabilities for the Southern Plains.  Temperatures are expected to reach much warmer than average throughout the eastern half of the U.S. 
   # Brazil meat packers continue to lose business after authorities announced that tainted product was being sold for export over the past several years.  China, the EU, and Japan are among countries that have banned Brazilian beef imports while the U.S. has implemented added inspection standards.  
   # Chatter over the renewable fuels programs is picking back up as industry advocates call for action to be taken on alleged dumping of biodiesel.  Domestic biodiesel producers will continue to campaign for a U.S. only blenders credit that would effectively shut off imports from countries like Argentina.  
   # Oil futures have made small gains overnight as we head closer to the weekend, which will feature a meeting of OPEC members.  The cartel will review the current state of the market and make an early assessment on the need for its production cut agreement to be extended into the second half of the year.  
   # Investors are keeping a close eye on the progress of the Republicans’ new health care bill.  The House of Representatives will vote on the latest amended version today.     
***** Live cattle look to find support on the open; hogs may find sellers interested in stepping in after Thursday’s move to the upside. ***** 

   # Cattle futures will trade in anticipation of this afternoon’s on-feed report.  Placements are expected to run a 1-2 percent lower than a year ago; marketings should be up about 3.5 percent.  
   # Hog futures had a bullish outside day on the chart, despite the fundamentals still leaning a little negative.  Pork prices are headed lower into the end of the week and the outlook is for the production pace to keep accelerating into the summer months.