Stewart-Peterson Market Commentary

Closing Commentary - July 21, 2017

Top Farmer Midday Update 7-21-17

CORN:Corn futures are down today as row crops take back some of this week’s gains. Dec corn is down 7 cents to 3.97-3/4, off the session low of 3.95, and down from this week’s high of 4.06-3/4. Healthy rains stretching from the Dakotas through the majority of IA, into IL and the eastern Corn Belt has taken the starch out of the market heading into the weekend. However, prices are holding together rather well with $4.00 serving as a toggle point while critical pollination occurs. The dollar is helping the cause with new lows generating some friendly outside-market influence.

SOYBEANS:Soybean futures are 8 to 9 cents lower putting Nov at 10.18 while maintaining the upper half of this week’s trading range. On the top side, that ceiling is etched at 10.31-1/4; on the down side, 9.93-3/4. Today’s lower trade should put managed money about even after having gone from net short 6,000 contracts heading into Thursday’s trade, to net long an estimated 6,000 contracts coming into today.

WHEAT:Wheat futures are firm. Sep CBOT wheat is up 1-1/2 cents to 5.07-1/4; Sep KC wheat is up 1/2 cent to 5.04-1/4. MPLS wheat is down 9 cents to 7.69, weighed down by relief in the Northern Plains after rains fell in parts of the region. The Sep contract is consolidating while narrowing a sideways range that will eventually lead to a breakout either higher or lower. The Northern U.S. Plains forecast has cooler temps seen early next week and then back into the heat after that. In tender activity, Iraq seeks50,000 tons of optional-origin wheat.

CATTLE:Cattle futures are higher with Aug live cattle up .700 to 116.575. Aug feeders are at 152.900 on gains of .625. Both contracts are about where they started the day as the trade awaits the release of this afternoon’s Cattle On Feed and Semi-Annual Cattle Reports. The data will be out after the markets close. Analysts expect the USDA in the COF report to put total cattle-on-feed as of July 1 up 2.9% from last year, with cattle placed in June up 6.2% and cattle marketed up 4.7%.

HOGS:Hog futures are higher with nearby Aug hogs rising from Thursday’s sharply lower close. The contract, at 81.825 on gains of .725, is trading an ‘inside day’ while forming a pennant on the daily charts. Cash is expected to see softer bids today while remaining at a premium to futures.

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