Stewart-Peterson Market Commentary

Closing Commentary - April 26, 2018

Top Farmer Opening Calls 4-26-18

CORN: Corn futures are mixed after rallying mid-week. Weekly Export Sales were well below trade estimates, coming in at 697,100 tons (27.4 mil bu) for old crop, 76,600 tons for new crop. There was an additional morning sale reported by the agency this morning showing 107,500 tons of old crop corn going to an unknown destination. Dryness in Brazil, potentially shrinking their surpluses offers support. In the U.S., planting progress has been rampant where dry enough. In IL, 25% of the corn crop is said to have been seeded in the past few days. Jul corn is off 1/2 cent to 3.95-1/4, but trending higher. Dec is down 3/4 cent to 4.11-3/4. Up-trending crude futures are up 53, the dollar down 14 points after making a new high overnight.

SOYBEANS: Soybean futures are firm with Jul beans up 4 cents to 10.43-1/4 while maintaining a sideways, mid-range pattern. Weekly Export Sales are non-supportive. USDA reported 371,300 tons (14.6 mil bu) for old crop, 166,500 tons for new crop. Looking at Chinese imports, we haven’t seen any purchases of U.S. supplies in two weeks. However, Argentina has been a sporadic buyer, which is supportive. Nov beans are up 2 to 10.36-3/4.

WHEAT: Wheat futures are seeing a light correction from Wednesday’s rally. Jul CBOT wheat is down 4 to 4.95, now mid-range of the contract’s peak at 5.31-1/2 from March 2 and low at 4.59 from March 29. Jul KC wheat, too, is mid-range at 5.23-1/4, down 5-1/4 cents. Sep MPLS wheat is up 1/2 cent to 6.12-3/4. Weekly Export Sales were 296,649 tons (11.2 mil bu) for old crop, above trade estimates, but non-supportive.

CATTLE: Cattle futures continue to move sideways, underpinned by hopes for a late week revival in the cash market and good retail sales on the brink of the grilling season. Wednesday’s on-line exchange listed over 3000 head but had no sales. Apr live cattle are up 0.200 to 122.125. Jun cattle are up 0.200 to 105.775. May feeders are steady at 141.350.

HOGS: Hog futures are lower with May hogs down 0.300 to 68.250, Jun down 0.550 to 74.800, and Jul down 0.275 to 78.150. Recent price action suggests a near-term bottom, as well as a corrective price peak in place. So, look for choppy trade as participants begin to position themselves ahead of the weekend. Look for the cash hog trade to open with bids steady to $1.00/cwt higher.

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