Stewart-Peterson Market Commentary

Closing Commentary - August 17, 2017

Top Farmer Midday Update 8-17-17

CORN:Corn futures are down 1 to 2 cents while trading near the bottom of Wednesday’s 6-3/4 cent trading range between 3.70 and 3.63-1/4 in the Dec contract. Trading is very light after traders pushed prices 20 cents lower the past week to multi-month lows. The contract low for Dec, at 3.58-1/2 was established about this time last year. Weekly Export Sales came in at 62,400 tons (2.5 mil bu) for old crop; 671,800 tons (26.4 mil bu) for new crop. The sales data was viewed as neutral for the market, being within trade estimates. In Global news, Brazilian farmers have exhausted storage space as they hold out for better prices after years of bumper crops overwhelmed storage capacity for corn, wheat, and other basic foodstuffs. So, for the first time in history, producers there will pile one row crop harvest on top of the other.

SOYBEANS:Soybean futures have stayed a nickel higher all morning putting Nov beans at 9.30-1/4. Weekly Export Sales were viewed as supportive, but weather is a limiting factor for prices. The data showed exports above trade estimates for both marketing year crops; 453,200 tons (16.6 mil bu) were reported for old crop; 899,400 tons (33 mil bu) for new crop. In addition, a delegation of importers from China signed agreements to buy 3.8 mil tons (139.6 mil bu) of U.S. soybeans at a ceremony in Omaha, Nebraska, on Tuesday, the U.S. Soybean Export Council said. Today, USDA said the leading importer bought 165,000 tons of option origin beans.

WHEAT:Wheat futures are setting new contract lows in winter wheat contracts at mid-day as bearish technical momentum and a general lack of bullish news keeps prices headed south. Weekly Export Sales were mildly supportive, but Dec CBOT wheat is down 7-1/4 cents to a new low of 4.39-3/4. Dec KC contracts put in a new low of 4.41-3/4 on losses of 5-1/4 cents. In spring wheat, Dec MPLS is up 4-1/4 cents to 6.89. Weekly Export Sales were 633,600 tons (23.3 mil bu). In tender activity, Saudi Arabia is seeking 480,000 tons of (17.6 mil bu) optional-origin wheat for October-December delivery; Egypt, yesterday, wound up being a buyer of 295,000 tons of Russian wheat and 60,000 tons from Ukraine; Tunisia was a buyer of 100,000 tons (3.6 mil bu) optional-origin wheat.

CATTLE:Cattle futures are down rather hard, to the bottom of this week’s lower trading ranges. Yesterday’s bearish moves coupled with disappointing cash trade and volume this week took some of the wind out of the sails of the complex, sending Aug live cattle 1.375 lower to 108.200. Oct is down 1.625 to 106.700. Aug feeders are down .425 to 141.825.

HOGS:Hog futures are sharply lower led by a 1.900 drop in the nearby Oct contract to 66.875, a 1-1/2 week low. It’s been a volatile week for the contract having traded as high as 71.35 during yesterday’s bearish outside reversal day, to today’s low of 66.750. Oct is down 1.800 to 61.675.

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