Stewart-Peterson Market Commentary

Closing Commentary - October 23, 2017

Top Farmer Midday Update

CORN:Corn futures are staging a technical recovery at mid-session after testing contract low support to start the week. Dec corn got to 3.43, but is now up 5-1/4 cents to the contract's pivotal 3.50 price level. Weekly Export Inspections, at 614,075 tons (24 mil bu), fell in line with trade estimates while nearly doubling the previous week's figure. Crude and the dollar are in positive territory for the day with dollar trading at its highest level since Oct 6 on gains of 20 points.

SOYBEANS:Soybean futures are firm following a strong Weekly Export Inspection figure. USDA said, 2.56 mil tons (94 mil bu) of soybeans were inspected for shipment last week, exceeding trade estimates. Meanwhile, rain over Brazil's dryer regions is dampening enthusiasm, in addition to technical pressure stemming from a bearish move in Friday's trade. Soyoil contracts are supportive while in the midst of a two-day buying spree after the EPA, on Friday, said they would not look to revamp alternative energy mandates. Bo beans have peaked at 9.81-3/4 on gains of 3 cents.

WHEAT:Like corn, wheat futures are higher after resisting contract low support to start the week. Dec CBOT wheat got to 4.35-1/4 on gains of 9-1/4 cents before stalling. Dec KC wheat has rallied 10 cents to 4.32-3/4. Weekly Export Inspections, at 169,750 tons (6.2 mil bu), came in well below the advertised trade estimates ranging between 300,000 and 500,000 tons.

CATTLE:The cattle complex tumbled sharply lower in early trade in reaction to Friday's COF 'Placement' number. However, buying interest has developed throughout the morning elevating contracts well off their lows. Oct live cattle are up .125 to 111.800. Dec cattle are even at 116.600. Feeders are still lower with Nov down 1.025 to 152.050 after finding support at 150.000.

HOGS:Hog futures are mixed with Dec down .725 to 64.125. The contract got to within .025 of technical resistance in the form of the intra-day high etched on Aug 16, ahead of the contract high from last year at 65.675 as another round of expected higher cash bids provide support. However, should the contract hold mid-day weakness into the close, a bearish outside reversal would be formed. Dec is down .300 to 68.800.

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