AgriVisor Afternoon MarketWatch

Wednesday, April 26, 2017
***** Corn futures finish lower by 4 1/2 to 6 cents; soybeans off 7 3/4 to 9 3/4; Chicago wheat fractionally weaker. *****

   # Corn futures ran into technical resistance from the 50- and 100-day moving averages and turned lower for weak settlement.  Some moisture was pulled out of the forecast for central Illinois, with the bigger rain totals delayed until the evening hours.  Also negative the market was talk of President Trump issuing an executive order that would withdraw the U.S. from NAFTA.
   # Soyoil bucked the bean weakness as a result of fresh talk regarding biodiesel policy.  A bipartisan bill has been introduced in the Senate that would extend the $1 per gallon production credit and make it only applicable to U.S. blenders.
   # Export sales are reported tomorrow.  Analysts look for new corn bookings to total something a little higher than last week’s 756,000 tons.  Soybean sales should come in near 300,000 tons, wheat near 400,000.  Deals for the next 2017/18 season should start to show up on a weekly basis now.  
   # Ethanol production was down a smidgeon on the week.  Corn used was nearly 100 million bushels but the grind pace has slipped considerably from February and March rates.
   # Domestic crude inventories were down 3.6 million barrels on the week, a much bigger draw than the -600,000 expected.  WTI crude futures were able to reverse higher by about $1 on the news.  Some of the enthusiasm was dampened by gasoline and distillate stocks increasing.      
   # Healthy rains have been observed in Southeast Brazil at the start of the week.  Mato Grosso and Goias have been dry, but showers are expected to pop up there on Wednesday and Thursday.  Parts of that central region are starting to lean a little dry.  Brazil is still expected to be on track toward a record safrinha corn crop. 
   # Wheat enjoyed slight support from worries about a cold spell in Southern Plains being a threat to the hard red wheat crop.  Winter wheat will otherwise enter May in a much-improved condition after April showers helped cure drought in the West.  
   # A rebound for the dollar took some wind out of the sail for commodities today.  Currency traders are evaluating among other items the proposed corporate tax plan from the White House and the possible NAFTA-disrupting border-adjustment tax.

***** Live cattle futures gain $2.20 to $2.72; feeders up as much as the $4.50 limit; hogs down $0.55 to $1.10. ***** 

   # Cattle futures rallied to meet up with the cash market today.  Cash deals on the Fed Cattle Exchange were averaging near $132, which maintains a substantial premium over June futures at $118.52.  Boxed beef was mixed but with further gains for the choice cuts.          
   # Hog futures remain technically weak and on the short end of the intermarket spreading with cattle.  The bulls have optimism over stronger pork demand about to be kicking in.  On the fundamentally negative side, production should be ramping up with weights climbing.