Stewart-Peterson Market Commentary

Closing Commentary - June 22, 2018

Top Farmer Midday Update 6-22-18

CORN: Corn futures are firm with Dec trading up 1 to 2 cents, while finding a home near 3.80 after a volatile week. Jul options expire today followed by First Notice Day for futures next week. There’s also an end-of-the month USDA Acreage and Stocks report looming. USDA announced morning export sales to Central America - 117,000 tons going to Panama, 131,300 tons to Mexico. Of the total to Mexico, 101,300 tons is new crop and 30,000 old crop. Weather-wise, conditions favor the corn crop. However, new selling has dried up for the moment after managed money reversed from long to short in the past month, and prices got hit hard on Tuesday, possibly putting in a low for the near-term. Outside market support from $2.00/bbl gains in crude despite OPEC talking about increasing production is noted. The dollar is mostly steady.

SOYBEANS: Soybean futures are higher while still trading a range established the past two-days after Tuesday’s wild ride that saw Nov beans trade a session and new low of 8.64-1/2 where buying emerged. The contract is up 11-1/2 cents to 9.13. Arguably, weather is generally conducive, but more so for corn than beans, in that, bean plants in too wet of soils are susceptible to more problems. We did get a new 5-year farm bill passed, and trade tariffs are still the talking points in the market.

WHEAT: Wheat futures are lower with Sep CBOT down 3-3/4 cents to 5.03 and Sep KC wheat down 4 to 5.06, taking back yesterday's solid close. Seasonal U.S. harvest pressure is noted, but some lodging issues in the crop may be arising in areas that got too much rain, and Black Sea shortage concerns are still present and offer underlying support.

CATTLE: Cattle futures are trading quiet and mixed ahead of this afternoon’s Cattle on Feed report. On feed trade estimates are 103% on feed as of June 1 vs a year ago; 105.2% marketed, and placements at 96%. Nearby Jun cattle are down 0.650 to 108.000. Aug is down 0.400 to 105.725. Aug feeders are down 0.225 to 148.200.

HOGS: Hog futures are weaker amid steady selling stemming from Chinese trade tariffs on U.S. pork threatening demand. Steady to lower cash is also weighing on sentiment. Jul hogs are down 0.625.400 to 79.850, Aug down 0.725 to 75.000, and Oct down 0.875 to 60.650.

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