Stewart-Peterson Market Commentary

Closing Commentary - August 22, 2017

Top Farmer Opening Calls 8-22-17

CORN:Corn futures opened with a weaker tone as a jump in the dollar and stagnant crop ratings keep a lid on the market. The 11-16 day weather forecast has near average rainfall for NE, IA, and MN with below average precipitation in the rest of the Plains and Midwest; temperatures are seen near average in the Plains and Midwest. Dec corn, at 3.62, is sitting on technical support near yesterday’s new low at 3.60-3/4. Funds are estimated long 25,000 corn contracts after selling 7,000 on Monday. Crude is steady and the dollar is up 40 points.

SOYBEANS:Soybean futures opened firm with Nov up a penny to 9.37-1/4. A slight slip in crop ratings coupled with good demand for beans and soyoil is expected to help solidify a near-term bottom for Nov beans, where the contract traded to a low of 9.21 last week.

WHEAT:Wheat futures are mostly steady in a bid to end a string of five consecutive days of new contract lows in Dec KC contracts. Dec is unchanged at 4.35-3/4 ahead of the contract low of 4.33-1/4. Dec CBOT wheat is steady near 4.37 and, Dec MPLS is firm at 6.70.

CATTLE:Cattle futures opened steady as prices try to consolidate after recent declines. Expectations for lower cash market bids this week have contributed to a bearish cyclone within futures, fundamentals and technicals. Aug live cattle are up .050 to a new 4-1/2 month low of 106.050. Oct is up .100 to 105.900. Aug feeders are steady at 139.800.

HOGS:Hog futures are firm with Oct up .100 to 64.775. The Aug low at 64.125 is support for the contract. That floor was tested and held on Monday after three days of price declines sparked by a large bearish mid-week reversal. On the upside, the contract’s 100-day moving average resistance lies up at 67.325. Dec hogs are up .150 to 60.000. Cash markets look to continue to soften with bids expected $1.00 to $2.00/cwt lower.

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