Stewart-Peterson Market Commentary

Closing Commentary - November 24, 2017

Top Farmer Midday Update 11-24-17

CORN: Corn futures are mostly unchanged with a weak tone in light post-holiday trade volume featuring Managed Money near-record short corn. The markets will close at noon CT today, and this will be the final Top Farmer update for week. Dec corn is at 3.45 and up about 2-1/2 cents for the week. This morning’s USDA Weekly Export Sales were within trade estimates at 1.08 mil tons (42.5 mil bu) for the 2017-18 marketing year; 25,500 tons (1 mil bu). Outside markets offer support today with crude up 60 cents after making new highs earlier today, and the dollar down 42 points.

SOYBEANS:Soybean futures are now firm with Jan beans up 3/4 cent to 9.98, up 8 cents on the week with funds net long the bean complex. Argentina’s weather is a little wetter than Wednesday’s forecast which put early pressure on the market, and 2017-18 Weekly Export Sales, at 869,100 tons (32 mil bu), were below trade guesses; 34,500 tons (1.26 mil bu) was reported for 2018-19. Soybean meal exports were better-than-expected, soyoil sales were within trade estimates.

WHEAT:Wheat futures are down 3-1/2 cents in the Mar CBOT contract to 4.37-1/4. Mar KC wheat is down 2-3/4 cents to 4.35-3/4. Both contracts are down 4 to 5 cents for the week with Managed Money still short more than 100,000 SRW wheat contracts. Weekly Export Sales came in at 199,800 tons (7.3 mil bu) and were below trade estimates.

CATTLE:Live cattle futures are lower, but about even for the week with Dec down .575 to 118.475 and Feb down .900 to 124.575. Mar feeders are up for week, but down slightly today to 152.775, off .375. An increase in cutout values this week offers underlying support. Meanwhile this week’s cash trade came in as high as $120/cwt with many transactions in the $118/cwt area. Morning Weekly Export data showed beef exports up 10% versus last week to 17,400 MT.

HOGS:Hog futures are moderately higher on early buying momentum from Wednesday’s sharp gains. Dec is up .475 to 63.300, a gain of $2.50 for the week and that contract’s highest level since November 9. Feb is up .400 to 69.500. Both contracts gapped to new highs for the move, further solidifying near-term bottoms. This morning’s pork export sales showed a 24% jump from the previous week, and a 1% improvement on the 4 week average. Today’s cash trade is undefined, though expected mostly steady.

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