Stewart-Peterson Market Commentary

Closing Commentary - September 19, 2017

Top Farmer Mid-day Update 9-19-17

CORN:Corn futures have trended lower throughout the morning in light volume amid a weakening technical picture where daily highs have been lower than the previous day since Sept 6. Dec corn is at a 1-week low of 3.68-1/2 on a 4 cent drop, putting the contract within 4-1/4 cents of the contract low hit on Aug 31. Managed Fund managers are likely asserting more pressure after selling on Monday put them at an estimated 122,000 sold corn contracts. Meanwhile, lagging crop maturity and ongoing debate over the size of this year's corn crop offer support, as well as, the weakness in the dollar. However, all in all, prices are subject to drifting lower amid disinterest in farmer selling and a lack of bullish enthusiasm.

SOYBEANS:Soybean futures are at session lows on losses of 7-1/2 cents. Nov beans are again at their 100-day moving average which has served as a pivot point for the contract since Aug 1. Updated global weather forecasts now call for rain in parts of Brazil where planting season is to get underway in earnest with dry soil conditions not suitable for seeding. This could be weighing on sentiment today, allowing prices to retreat from a friendly demand-driven bounce in the market.

WHEAT:Wheat futures, too, have reversed early gains and are now down 6 cents at all three exchanges to 4.38 in Dec CBOT contracts, 4.36 in KC wheat and, 6.16-1/4 MPLS. Funds were short an estimated 85,000 SRW contracts heading into today and look to be defending that position today after prices failed near 4.50 in Dec winter wheat contracts the past four days. In tender activity, Egypt seeks optional-origin wheat for late October shipment; Japan seeks 127,000 tons of optional-origin wheat.

CATTLE:Cattle futures have been mostly steady all morning with this week's cash markets undefined ahead of tomorrow's Fed Cattle Exchange trade. Oct live cattle are down .100 to 107.475. Dec cattle are down .150 to 112.800 and, Oct feeders are up .450 to 152.400 after putting in a fresh 2-month high at 152.825.

HOGS:Hog futures are higher with Oct up .650 to 60.650, up more than 2.000 from last week's new contract low. Weaker cash bids are again expected today, promoting ideas of technically inspired trading in futures since the nearby contract trending lower. Like the swing of a hammer, we may be seeing a rise ahead of the next downward stroke. In apparent continued bear spreading, Dec hogs are up 1.050 to 59.100.

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