Stewart-Peterson Market Commentary

Closing Commentary - June 28, 2017

Top Farmer Midday Update 6-28-17

CORN:Corn futures are mostly steady with a weak tone in very light trade. Rain is making its way across the upper Midwest today highlighting a ‘rain makes grain’ attitude that is prevailing over potential support from new lows in the dollar. Today’s Weekly Ethanol Statistics have yet to be released as of this writing but are expected to show sustained strength in corn usage vs USDA projections. Weekly Export Sales will be out tomorrow followed by Friday’s Quarterly grain stocks and acreage data.

SOYBEANS:Soybean futures are 4 to 5 cents higher, though still inside Tuesday’s 10 cent ranges. Jul beans are at 9.15-1/2 and, Nov is at 9.22-1/2. Funds are still estimated to be short more than 100,000 bean contracts after buying back an estimated 2,000 contracts in the previous session. The weak technical trend continues to favor their positioning as contracts trade below all their moving average resistance lines that are, for the most part, sloping downward.

WHEAT:Wheat futures are being pulled higher by sharp gains in MPLS spring wheat contracts as weather premium rockets contracts to new highs. Sep futures blew through the psychological $7.00 level to a high of 7.17-1/2 on gains of 31 cents. Sep CBOT wheat is up 4 cents to 4.73; KC wheat contracts are also up 4 to 4.79-3/4. The U.S. Northern Plains weather had no major changes as below average precip will continue to occur across the western 1/2 of the region for the next week to ten days, with moderate rains to fall in the east and temps will run average to below for most of this week and then look to warm to above average for the early part of next week.

CATTLE:Cattle futures are moderately lower with Jun live cattle off .150 to 119.450; Aug down .400 to 114.625 and, Aug feeders down .925 to 143.950. Today’s Fed Cattle Exchange showed several loads sold between $119 and $120/cwt.

HOGS:Hog futures remain in bull-spreading mode with the front three contracts .250 to .750 higher and the back months down slightly. Jul hogs are up .550 to 87.025 after falling short of hitting 87.725 earlier in the session. Aug hogs are up .650 to 79.200. More strength in cash markets with bids steady to $1.00/cwt higher and a hike in cutouts on Tuesday is providing underlying support today. Some position squaring is also noted ahead of tomorrow’s USDA Quarterly Hogs/Pigs report.

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