Stewart-Peterson Market Commentary

Closing Commentary - November 21, 2017

Top Farmer Midday Update 11-21-17

CORN: Corn futures are down 1/2 cent to 3.42-1/2 (Dec) in very light trade. Yesterday’s weekly export inspections continue to show U.S. corn exports running behind current USDA forecasts. Harvest-wise, farmers in the home stretch while looking to get the last 10% of the crop in, and with ample supplies and low prices, slow farmer selling is noted. Thanksgiving holiday is Thursday so the markets will be closed. Trade-wise, preliminary open interest was down reflecting upcoming Dec option expiration on Friday and First Notice Day next week. Outside markets are also mostly steady with crude firm, the dollar flat/weak.

SOYBEANS:Soybean futures remain 3 cents lower at mid-session with Jan at 3.87, mid-range of the contract’s trading range, but above all moving averages. South American weather forecasts have seen little to no change and will dictate price movement moving forward. For now, scattered rain is projected, mitigating buying interest in the bean complex. USDA reported an export sale of beans to China this morning, totaling 130,000 tons (4.7 mil bu) for the 2017-18 marketing year.

WHEAT:Wheat futures are now up 5 cents to 4.43-1/2 and 4.38-1/2 in Mar CBOT and KC contracts, respectively. Both contracts resisted contract low support in early trade which may be leading to some short-covering strength. In addition, there are some export tenders out there from overseas. Ethiopia seeks 70,000 tons of optional-origin wheat, and Tunisia seeks 92,000 tons. However, Russian wheat prices have been down three consecutive weeks now resulting in booming exports, up 26% from last year.

CATTLE:Cattle futures are higher in light corrective trade after tumbling to their lowest point(s) in nearly a month on Monday. Dec live cattle are up .600 to 117.700, Feb up .950 to 123.975. Mar feeders are up .775 to 148.825. We’ll get a cold storage report today. Meanwhile, this week’s cash market trade will likely conclude tomorrow with cattle owners seeking prices steady with last week’s $119 to $120/cwt values.

HOGS:Hog futures are have reversed early gains that saw nearby contracts climb to a one-week high before succumbing to selling on weak cash trade. Dec hogs are now down .450 to 61.575. Feb is off .675 to 67.800, and April hogs are down .350 to 72.025.

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