Stewart-Peterson Market Commentary

Closing Commentary - July 23, 2018

Top Farmer Opening Calls 7-23-18

CORN: Corn futures begin the week picking up where they left off last week. Dec corn is up a penny to 3.70, pushing higher on ideas that a low is in, and ahead of a possible dip in Weekly Crop Ratings to be released after the close today.

SOYBEANS: Soybean futures are weaker, unable to maintain last night’s higher trade into the day session. China announced a cancellation of 165,000 tons (6 mil bu) of 2018-19 beans, and last week’s shipments were on the lighter side. Nov beans put in a two-week high at 8.70 overnight, and are now fractionally lower to 8.64-1/4.

WHEAT: Wheat futures are firm, led by spring wheat contracts. A combination of follow-through buying from Friday’s break-out higher close and an 80 mile stretch of spring wheat that burned up in Oregon due to suspected arson, is seen fueling a higher start to the week. Sep MPLS wheat is up 12 cents to 5.67. Sep CBOT wheat is up 3 to 5.19, and Sep KC is up 5 to 5.13-1/2. In tender activity Iraq seeks 50,000 tons of optional-origin wheat.

CATTLE: Cattle futures opened mixed with late cash trade on Friday at $114/cwt, seen offering support to nearby contracts. Aug live cattle are up 0.200 to 109.125, Oct up 0.125 to 110.375, and Aug feeders up 0.100 to 153.725.

HOGS: Hog futures opened mixed with firmness seen in the nearbys, and pressure in the deferreds. Aug is up 0.350 to 66.800 after making a new contract low 4 out of the last 5 days of trading. Friday’s contract low at 65.650 is support. Oct hogs are up 0.400 to 51.675 with Friday’s contract floor at 50.725, and Dec is up 0.400 to 46.325. News-wise: cash bids look to be $1.00/cwt lower, and tornado damage to the JBS pork plant in Marshalltown, IA warrants trade focus due to potential delays to processing progress.

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