AgriVisor Afternoon MarketWatch

Monday, May 08, 2017
***** Corn futures down 4 to 5 cents; soybeans drop 5 1/4 to 8; Chicago wheat off 7 to 9 1/2. *****

   # Rains pops back up in the Midwest during the middle of the week before the region is expected to dry out over the following two weeks.  The 6-10 day outlook is cool across the Corn Belt before temperatures warm up again during the 8-14 day forecast period.  
   # CFTC’s Commitments of Traders report showed funds covering corn shorts but also liquidating some longs.  The net-short was left at 184,630 contracts as of Tuesday’s close of business.  The soybean net-short shifted slightly to 47,667 contracts.  The snow storm in the Plains two weekends ago triggered a sizable round of short-covering for wheat.  The net-short held against Chicago and Kansas City futures shrunk by some 55,000 contracts.
   # Traders were waiting to see the Crop Progress report.  Corn planting progress is expected to come in near 44 percent.  Large strides were made for farmers in the Western Corn Belt this weekend, but delays are still faced east of the Mississippi River.  
   # Sections of the Mississippi River will reopen with restrictions over the next several days. Much of the River was shut off to grain-laden barges heading to the Gulf as well as to those heading north to refill.   Flood waters are receding after the crest at St. Louis reached 41.7 feet.  Flood stage for the area is defined at 30 feet.     
   # Export shipments were down on the week for corn and soybeans.  Corn inspections totaled 28.4 million bushels versus 43.6 mbu last week.  Soybean exports were 12.8 mbu versus 20.3 mbu LW.  At 22.6 mbu, wheat inspections were behind the pace needed to meet USDA’s target of 1.025 billion bushels for the marketing year.     
   # New Ag Secretary Sonny Perdue is making the rounds after his recent confirmation to the position.  Along the tour, he has so far made it clear that he intends to provide full support to renewable fuels programs and backs a quick renegotiation of NAFTA terms.    
   # Oil prices sagged further as traders see non-OPEC production rising to offset OPEC supply cuts.  Nearby WTI crude futures are off 15 percent from their April high.   
***** June live cattle futures give up $0.52 as August gain $2.07; feeders jump $3.22 to $5.40; hogs up $0.50 to $1.05. *****

   # Cattle traders used the first session of the new week to adjust futures spreads, taking profit on the big bull spreads that had been put on at the beginning of the month.  Strong packer demand leaves the short-term fundamentals friendly, but high beef prices are likely going to find some pushback from the consumer.                
   # Pork prices were higher to extend Friday’s gains.  Packer margins are strong enough to make traders think the cash market will maintain support.  June futures are in a sharp uptrend as they have jumped 13 percent from their April 21 low.