Stewart-Peterson Market Commentary

Closing Commentary - October 18, 2017

Top Farmer Midday Update 10-18-17

CORN:Corn futures are flat/weak while settling back into their narrow trading ranges prior to market reaction during last Thursday’s USDA Supply/Demand report. 3.49-1/4 is where Dec corn has spent much of the morning. Good harvest weather this week is weighing on the market in light trade with little supportive news to keep prices from slipping. We’ll get Weekly Ethanol Stats shortly followed by USDA Weekly Export Sales on Thursday. Crude and the dollar are flat/weak.

SOYBEANS:Soybean futures have turned higher in light volume. Nov beans, trading up 2-1/2 cents to 9.87-1/2 are consolidating inside yesterday’s 8 cent trading range while staying above the contract’s moving averages. With supply fundamentals in a non-bullish state, money flow appears to be the leader of price action and direction. For now, funds are long the soy complex.

WHEAT:Wheat futures are down 3-1/4 cents to 4.31-1/2 and 4.30 in Dec CBOT and KC contracts, respectively. Like corn, both contracts are now back to the same price area they were in leading up to the USDA report in a quiet ‘news’ atmosphere. For now, both commodities remain succumbed to the pivotal price area.

CATTLE:Cattle futures are lower at mid-session. Nearby Oct live cattle is down .700 to 110.475 after finding support at the contract’s 200-day moving average at 109.600. Dec is down .925 to 115.050, and Nov feeders are down 1.400 to 151.100. Pressure stems from Fed Cattle Exchange trade/sales at $109/cwt. Ag Center reports “show lists are modestly smaller this week, but packers acquired more cattle last week leaving their inventories in better shape. Many cattle being held past the termination of the Oct contract expecting premiums expected in the December delivery periods.

HOGS:Hog futures are higher led by ongoing strength in the cash market. Dec hogs are up .925 to 63.000. Feb hogs are .450 higher to 67.600. Technically, both contracts are trading an ‘inside-day’ while holding support.

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