AgriVisor Afternoon MarketWatch

Monday, September 10, 2018
***** Corn fractionally changed; soybeans up 1 to 1 3/4; Chicago wheat rallies 15 1/4 to 17 3/4 cents. ***** 

   # Grain futures traded very light volume on a day that was largely devoid of fresh news.  Market participants await word on NAFTA negotiations and Chinese tariff policy.  Positions have been prepared for Wednesday’s crop report and the waiting game begins.  
   # The start of harvest was delayed for many in the Midwest after a wet weekend.  Rainfall totals of 8-10 inches were recorded in Southern Illinois and throughout many areas in Indiana.  The 6-10 day outlook is dry and warm for now, but could be impacted by approach of a Hurricane Florence.  A couple of small storms are being monitored in the Gulf of Mexico.  Hurricane season is currently at its peak.
   # USDA reported a flash sale for 132,000 tons of soybeans sold to an unknown buyer.  Weekly export inspections were down for corn, up for soybeans, steady for wheat.   
   # Wheat futures were higher on a rebound from last week’s 34 cent loss in the Chicago market.  December futures rallied sharply into the close to retake chart support from the contract’s 200-day moving average.  Expectations for global production cuts on Wednesday’s crop report lend fundamental support.      
   # Australian crop agency ABARES reduced its estimate for the country’s wheat crop to 19.1 million tons, leaving USDA room to cut from its August projection of 22 mt.
   # Soybeans found support early from a rally for the same in China’s Dalian futures market.  Concern over soybean crop loss in China due to a weekend freeze event triggered buying.  
   # Soymeal futures helped lead the complex higher.  Tighter supplies and higher export taxes in Argentina this season curb trade potential for the world’s top meal shipper.  U.S. cash soymeal premiums were seen firming at the start of the week.   
   # Weaker shares of Apple stock were weighing on the major indices today.  Apple was lower after it was reported that the company may be raising prices if U.S. tariffs disrupt the cell phone supply chain.  On Saturday, President Trump tweeted of Apple, “Make your products in the United States instead of China.”  

***** Live cattle futures steady to $0.47 higher; feeders down $0.27 to up $0.22; hogs bull spread up $0.30 to down $1.10. ***** 

   # Sellers re-engaged after cattle futures made a strong start and sent contracts back toward Friday’s settlements. October live cattle are struggling to find sustained buying interest above the 200-day moving average.                
   # Higher cash and wholesale markets helped nearby hog futures rally early, but strength was limited with traders well aware of the board holding a hefty premium to cash.