Stewart-Peterson Market Commentary

Closing Commentary - February 21, 2018

Top Farmer Opening Calls 2-21-18

CORN: Corn futures are 1 to 2 cents higher, keeping the gradual up-trend alive. May corn, at 3.74-1/4, is back to bumping up against resistance at last week’s highs at 3.76, though intra-day trade yesterday did hit a new high at 3.78 before reversing lower while posting a bearish reversal. For now, that high is a bullish target. Dec corn is up 1-1/4 cents to 3.97-1/4. Demand fundamentals continue to offer support, but every uptick in corn prices is being met with farmer selling. Outside markets, too, offer some resistance to corn today with crude down 46 cents and the dollar up 17 points.

SOYBEANS:Soybean futures are firm with May beans up 6-1/2 cents to 10.44. The contract touched 10.50 in Monday night’s trade, coming within 3 cents of the July 2017 high pushing prices to technically overextended territory. On the downside, initial support lies at 10.23 and then 10.16. Nov beans, up 4 to 10.30, have eclipsed yesterday’s high of 10.29-3/4 and have now formed a bullish outside day on the chart. Yesterday’s push to new contract highs in meal, as Argentine weather brings some buying interest to the markets, remains supportive to the complex.

WHEAT: Wheat futures are mixed with a weaker tone in KC contracts. May KC wheat is down a penny to 4.86-1/4. New resistance has formed at 5.00-1/4 and the near-term trend remains positive, but recent choppy action leaves the market vulnerable to a correction phase. Support lies at 4.79-3/4. May CBOT wheat is up 1-1/2 cents to 4.64 with a short-term top and resistance formed at 4.79-1/2. Now, the contract is closing in on a test of 4.60-1/2, the swing low from February 9. If the 4.60-1/2 floor cracks, bearish momentum will accelerate with the next downside chart objective seen at 4.51, the February 6 low.

CATTLE: Cattle futures are weaker with Feb fat cattle off .200 to 130.100, near where last week’s cash cattle traded. We’ll get the online cash cattle trade mid-morning today. Apr cattle are down .100 to 127.625; and Mar feeders down .300 to 149.500.

HOGS:Hog futures are up .400 to 69.600 in the nearby Apr contract with 200-day moving average resistance drawn at 71.325. Cash hog prices are expected to see most bids steady to $1.00/cwt lower today. May hogs are up .375 to 76.375.

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