Stewart-Peterson Market Commentary

Closing Commentary - January 18, 2018

Top Farmer Midday Update 01-18-18

CORN: Corn futures are fractionally lower after trading two-sided this morning. Mar corn peaked at a two-week high of 3.54 with a session low of 3.51-1/2. Trade volume is light, but managed money may be moving more short positions now that prices are getting back above their near-term moving averages. The fund managers were net buyers on Wednesday, possibly in lieu of corn prices failing to move lower despite record U.S. corn yields reported in the January crop report. For now, traders have little to work with as far as fresh news or outside market influencing the market. Crude and the dollar are mostly unchanged. Ethanol Stats will be out later this morning, Weekly Export Sales tomorrow morning.

SOYBEANS:Soybean futures are inching higher on gains of 3 to 5 cents in light volume. Mar beans hit 9.74-1/4, falling short of the contract’s 200-day moving average up at 9.79. That chart line hasn’t been crossed since price were on their way down back in mid-December. Before today’s trading began, managed money was net short 88,000 contracts of soybeans; net long 19,000 lots of soymeal, and; net short 2,000 lots of soyoil. The market is showing signs of putting some weather premium back in as Brazil’s been harvest slows due to wet conditions, and limited rainfall in Argentina warrants some concern.

WHEAT:Wheat futures remain 2 to 3 cents higher at mid-session putting the May CBOT and KC contracts at 4.37-1/4 and 4.42-1/2, respectively. May MPLS wheat is unchanged at 6.21.

CATTLE:Cattle futures are higher on follow-through buying from Wednesday’s steep gains. Feb cattle are up .875 to 121.850, effectively closing a minor gap left from January 5. Apr cattle are up .475 to 123.250. Mar feeders are up .700 to 146.675 while stalling at the contract’s 100-day moving average resistance for the second day in a row. A recap of this week’s cash market activity so far has yesterday’s on-line auction securing a token sale of one lot at $119.750/cwt. Lighter showlists this week favor owners and should buoy the balance of this week’s cash trade, thus support futures.

HOGS:Hog futures are mixed with a firm tone let by the nearbys. Feb hogs are up .275 to 73.000. Yesterday’s new contract high is at 74.250. Apr is up .500 to 76.025 and May hogs are up .050 to 80.600.

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