AgriVisor Morning MarketWatch

Monday, March 27, 2017
***** Corn futures fractionally higher overnight; soybeans down 3 cents; Chicago wheat off 2. ***** 

   # Soybeans face pressure from follow-through selling and weakness spilled over from softer Asian markets.  Bean futures on China’s Dalian exchange ended two percent lower.  Outside markets are a negative for the gains at the start with the major U.S. equity indices set for a sharply lower open and crude oil falling further.  
   # May soybeans have an overnight low matching Friday’s at $9.72 1/4.  Futures are testing support from a cluster of lows put in last November.  $9.50 is potential psychological support with $9.24 a key low under that.    
   # Weekend rain coverage was a little more than 50 percent of Kansas and Oklahoma but with light totals ranging from a few tenths to an inch.  More rain is expected to fall over the region during the middle three days of the work week.  The two-week forecast is wet for all of the Midwest. Temperatures should continue to run warmer than normal. 
   # Report week.  The Prospective Plantings and Grain Stocks reports will be issued at 11:00 am central, Friday.  The average trade guesses call for corn acres down to 90.9 million, soybeans up to 88.3.  The mean predictions for grain inventories on hand as of March 1st are 8.543 billion bushels of corn, 1.676 billion soybeans, 1.627 billion wheat.  
   # The Commitments of Traders report showed another week of money managers building a bearish bet on corn futures.  A net-short of 82,000 contracts was held as of last Tuesday.  Funds pared their net soybean long down to 66,000 contracts.  The wheat short was raised to 121,000 contracts. 
   # European regulators signed off on the merger between Dow Chemical and DuPont.  The two conglomerates will combine in a deal valued north of $75 billion.  Further changes in the ag chemical space are likely as Bayer AG attempts a buyout of Monsanto and China National Chemical Corporation buys Syngenta AG.      
   # Stocks are selling off in reaction to the Republicans’ failed healthcare vote.  The “Trump trade” looks to be fizzling as investors question the new administration’s ability to pass the promised pro-growth policy initiatives.  

***** Cattle futures look to start steady/weaker; hogs likely to face technical pressure at the start.  ***** 

   # Cattle on Feed numbers were mostly price-neutral.  Traders may take to selling futures now that the nearby contracts are reaching into overbought territory on the charts.  
   # Hog futures took a bearish turn on Friday and are set up with a negative technical bias to start the week.  Hog slaughters are picking up to meet what producers and packer hope will be a strong April for demand.