Stewart-Peterson Market Commentary

Closing Commentary - May 22, 2018

Top Farmer Midday Update 5-22-18

CORN: Corn futures are near their respective highs on gains of 3 to 4 cents at mid-session as the market continues to work slowly higher amid a supportive stocks-to-use fundamental picture. Monday afternoon’s weekly Planting Progress was near normal, and weather looks to be non-threatening, though weather uncertainty moving forward warrants some weather premium. Seemingly, though, that’s already in the market. Sharply higher trade in wheat futures is also boosting corn trade today. Jul corn peaked at 4.07 so far today, supported by residual fund buying. Dec corn eclipsed Monday’s new contract high by 1/4 cent, establishing a new peak at 4.25, for the moment. New highs in crude this morning offer some outside market support, though the dollar, too, has been trending higher - normally a limiting factor for commodity prices.

SOYBEANS: Soybean futures jumped more than a dime in early dealings before trimming gains. Jul and Nov beans are up 7 and 6 cents to 10.32-1/4 and 10.39-3/4, respectively, underpinned by trade optimism over relaxed trade tariffs that many believe will lead to at least token bean sales to China.

WHEAT: Wheat futures are leading the grain and oilseed complex with double-digit gains as money flows back into the long side of the market place. Weather in the U.S. Plains is being touted as supportive to winter wheat prices where dryness has not been cured by recent scattered rains at a time when crop development hits a critical juncture ahead of summer harvest. Jul CBOT wheat is up 20 cents to 5.27-1/4 while forming a bullish outside day on the daily chart. Jul KC wheat is up 22 to 5.48-1/2, also carving out a bullish formation on its chart. Sep MPLS wheat is up 14 cents to 6.42-1/2.

CATTLE: Cattle futures are mostly steady as the trade digests Monday’s rally that saw nearby Jun live cattle hit the daily 3.000 trading limit higher before trimming gains into as the close. Jun is unchanged at 104.925 as traders opt for near-term moving averages versus pushing prices higher ahead of this week’s cash trade. Aug cattle are down 0.125 to 100.500. May feeders are up 0.025 to 133.950.

HOGS: Hog futures are lower with Jun down 0.750 to 73.250, while still at a premium to cash. Jul is down 0.950 to 75.900, and Aug down 1.075 to 74.975. Technical traders opted to push prices lower and out of a recent narrowing pennant formations on Monday as questions over trade tariffs on pork to China create uncertainty instead of optimism.

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