AgriVisor Morning MarketWatch

Tuesday, March 28, 2017
***** Corn futures up 1 to 2 cents; soybeans higher by 2 to 3 1/2; Chi wheat up 2 to 2 3/4. ***** 

   # Soybeans attempt a small overnight bounce but motivation for the bulls is likely to remain scarce.  Some traders may be starting to square shorts ahead of the month-end reports.  
   # An ‘inside day’ so far for corn futures, the May contract has minor support at $3.54 1/4, resistance at $3.58 1/4.  Momentum is squarely negative but the volatility measures are nearing toward overbought readings.  
   # Showers are expected to pop up across Mato Grosso this week, but most of southern Brazil down through Argentina will stay dry enough to allow for substantial harvest progress. 
   # Storms are expected to dump rain on the Southern Plains starting this morning.  Scattered showers should follow behind the first system on Wednesday.   
   # Texas farmers are ahead of pace in having already planted 45 percent of their corn crop.  Corn in Louisiana is 80 percent planted versus a 5-year average of 48 percent.  Progress in Mississippi is 30 percent versus 4 percent last year.
   # Winter wheat conditions in Oklahoma deteriorated slightly on the week while Kansas ratings stayed flat at 38 percent good or excellent.  A national Crop Progress report will start to be issued again starting the first week of April.  
   # Bird flu was found on a Georgia chicken farm this week.  Officials in the southern producing states are limiting trade in an attempt to stop further outbreak.  
   # Fed Chair Yellen and other key central bankers are set to make speeches today on the state of the economy.  Traders will use the comments to adjust odds on interest rate changes.  Altered interest rate expectations would also impact a dollar that has been pressured against most currencies this month.    

***** Hogs face fresh tech pressure after gapping lower and settling under their 100-day; cattle biased weaker.  *****

   # Traders took profits on cattle futures after Friday’s Cattle on Feed report failed to provide anything overly bullish.  An overbought chart helped to encourage selling.  Boxed beef prices were lower on the day with choice cuts off $1.99.      
   # A volatile trade continues for the pork market with belly cuts rallying back higher by $5 on Tuesday.  Traders are optimistic about demand running strong in April, but dampening the enthusiasm is an expectation for production to more than satisfy the pace of consumption in the second quarter.