AgriVisor Afternoon MarketWatch

Tuesday, November 07, 2017
***** Corn futures finish fractionally weaker; soybeans up 2 cents; Chicago wheat lower by 3 1/2 cents. ***** 

   # USDA issued a flash export announcement for 130,000 tons of corn sold to an unknown buyer.  Daily sales of the sort are usually more commonplace at this time of the season and corn export commitments are lagging well behind of last year’s pace.
   # The forecast provides more rain for Brazil this week, but the back-half November outlook has turned drier.  Soil moisture still runs well short of normal in Mato Grosso and most of the rest of central Brazil, while conditions are a little too soggy in parts of Parana and southern Brazil.
   # Clear skies are predicted for the Midwest through the rest of this week.  Light rains are part of the weekend weather outlook.  The 6-10 day forecast has the Eastern Corn Belt running wetter than normal in continuation of the recent trend. 
   # Meteorologists continue to put odds of a La Nina event occurring this year at around 50-50.  The Australian weather watchers will issue a fresh report on their La Nina forecast on Wednesday.  
   # Wheat continues to be a drag on corn as today’s session saw December Chicago futures turned away from their 20-day moving average.  The contract has marked two consecutive settlements above that mark since late September.  Today’s low at $4.24 forms minor support for the rest of the week.  A first key high comes into play at $4.43.
   # USDA listed the Central Illinois producer basis averages at 32 1/2 cents under December futures for corn, 47 under the January for soybeans.  The corn and bean basis averages for Interior Iowa were marked at 47 and 90 cents under, respectively.   
   # President Trump is in South Korea today after having just visiting Japan and ahead of a stop in China.  North Korean aggression is a key topic of discussion among Trump and his Asian counterparts, but trade will be an important subject as well.  Grain bulls hope Trump can come away from China with another round of good-will soybean deals.  One deal already expected to come out of the China visit includes an agreement for a Chinese company to import $2 billion worth of U.S. food products.  

***** Live cattle futures steady to $0.70 lower in the front; feeders down $0.35 to $0.82; hogs off $0.70 to $1.35. ***** 

   # Cattle futures moved lower under pressure from technical selling that followed Monday’s bearish reversal.  Gains for the boxed beef cuts help to support, but traders question with doubt if cash prices can build on last week’s gains.        
   # Pork packer margins were starting off the week on a stronger note, but they still remain behind last year by a wide degree.  Wholesalers are still moving through product at a rapid clip and stocks are not yet building at an overly-burdensome pace, but exports will have to continue helping out if excess supplies are going to be cleared.