Stewart-Peterson Market Commentary

Closing Commentary - April 19, 2018

Top Farmer Opening Calls 4-19-18

CORN: Corn futures are unchanged with contracts trading at, or above, their respective 20 and 40-day moving averages, and below 10-day moving average resistance. Jul corn, at 3.91-3/4, is in a neutral stance while trading both sides of the mid-point between the 4.02-3/4 high from March 13 and the 3.77-1/2 low from March 23. Dec is at 4.08-1/2 with a positive bias. This morning’s USDA Weekly Export Sales got back above 1.0 mil tons and were in line with trade guesses at 1.09 mil tons (43 mil bu) for old crop. 112,200 tons were reported for the 2018-19 marketing year. Outside markets favor the corn bulls today with crude making new highs on gains of 71 cents and the dollar off 12 points.

SOYBEANS: Soybean futures are fractionally lower, meal lower, and soyoil firm. This morning’s USDA Weekly Export Sales were within trade estimates for old crop at 1.04 mil tons (38.2 mil bu); above for new crop at 1.09 mil tons (40 mil bu), and viewed as supportive. Jul beans are down a penny to 10.52-1/4, and like corn contracts, are finding a home at the contract’s 20 and 40-day moving averages, just below 10-day MA resistance. Nov beans are off 1/2 cent to 10.45-1/4.

WHEAT: Wheat futures are firm with Jul CBOT wheat up 2 cents to 4.91-1/4. Jul KC wheat is up 5-1/4 to 5.13 as adjusted weekend weather forecasts for the U.S. Plains garner attention. Funds are still short SRW wheat. Sep MPLS wheat is up 1/4 cent to 6.30. This morning’s USDA Weekly Export Sales will not help the recovery in wheat prices. The agency reported only 66,900 tons (2.4 mil bu) of wheat sales for 2017-18. Next year’s sales, though, were 240,400 tons (8.8 mil bu).

CATTLE: Cattle futures start the day trading mixed. Apr live cattle are up 0.100 to 119.075, a new intra-day high for the sixth consecutive day. Jun is off 0.050 to 105.225. May feeders are down 0.175 to 140.500. The average of trade estimates for tomorrow afternoon’s Cattle on Feed report for April on Feed is 107.6, Placed in March is 90.9; and Marketed in March is 96.1.

HOGS: Hog futures are seeing early follow-through buying interest after Wednesday’s rally to new multi-week highs in the complex, except for the nearby May contract, which is at a premium to rising cash. May is up 0.125 to 69.975. Jun is up 0.250 to 78.775; and, Jul is up 0.075 to 81.125.

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