Stewart-Peterson Market Commentary

Closing Commentary - April 25, 2018

Top Farmer Midday Update 4-25-18

CORN: Corn futures are staging a comeback, erasing mid-month weakness as managed money reasserts themselves having been net long the corn market during the past two months. Arguably, planting has gotten off to a rocky start. However, surging crude prices, the dollar down from a year ago (though making a new high for the move today), and potentially friendly supply/demand scenarios, and a supportive technical trend favor the bulls. On a sour note, today’s weekly Ethanol Stats showed corn usage for last week’s ethanol production, at 102.61 mil bu, fell below the 103.655 mil bu per week needed to meet USDA’s annual usage estimate for the first time. Jul corn is up 4-3/4 cents to 4.02, rising above all its moving averages. Dec corn is up 4-3/4 cents to 4.11-3/4 while closing in on the peak at 4.16-1/2.

SOYBEANS: Soybean futures are higher and may be seeing a bid underneath prices due to talk of the U.S. sending a representative to China to try to work out a trade deal. Jul beans are up 6-1/4 cents to 10.40-1/4 and are stabilizing above key 100 and 200-day moving average support. Nov beans are up 7 cents to 10.35-3/4.

WHEAT: Wheat futures are leading the grain and oilseed complex with double-digit gains on the heels of bullish reversals posted on Tuesday. Jul CBOT wheat is up 12 cents to 4.96-1/4. Jul KC wheat is up 12 to 5.24. Sep MPLS wheat is up 7 cents to 6.13-1/4 on spillover support from the winter wheat trade. Regardless of price direction, we are seeing declines in open interest as suspected with option expiration last week and the approach of FND for May futures at the end of the month.

CATTLE: Cattle futures are narrowly mixed following today’s Fed Cattle Exchange that saw nearly 3,200 head offered with no sales, and 2 lots passed over at $121 and $120.25/cwt. Apr live cattle are up 0.750 to 121.850. Jun cattle are up 0.225 to 105.300, and May feeders are up 0.575 to 140.725. However, most of the rest of the complex is steady to weaker.

HOGS: Hog futures are higher as the trade opts for consolidation within the recent price recovery ranges. Nearby May hogs are up 0800 to 68.250. Jun is up 0.425 to 75.250. Jul hogs are up 0.375 to 78.375.

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