Stewart-Peterson Market Commentary

Closing Commentary - April 20, 2018

Top Farmer Midday Update 4-20-18

CORN: Corn futures are lower as the trade leans toward the belief that planting progress will not be severely impacted a later-than-normal start. However, managed money is still net long corn heading into planting season. The grain and oilseed complex, in general, is under pressure ahead of the weekend, and a spike in the dollar (up 44 points) might be having some negative impact on prices. Jul is now down 4 cents to 3.87, mid-range of the contract’s 20 and 40-day moving averages and above and the 200-day MA . Dec is at 4.04.

SOYBEANS: Soybean futures are quietly trading 6 to 7 cents lower, putting Jul at a two-week low of 10.42. Nov is down 5-3/4 to 10.36-3/4, after first trading low enough to close the chart gap left from April 6-9. May option expiration is today which generally is a precursor to declines in open interest. This may be helping weigh on the complex.

WHEAT: Winter wheat futures are lower with Jul CBOT down 9-1/2 cents to 4.81-1/2, and Jul KC down 9-1/4 cents to 5.05-1/4. Both contracts have softened their stance at the end of the week, awaiting the accuracy of revised forecasts calling for a little more precipitation than advertised earlier in the week. Funds have been covering short positions all week and are still net short an estimated 55,000 SRW wheat contracts. Sep MPLS wheat is down 8-1/2 cents to 6.15-1/2.

CATTLE: Cattle futures have relinquished early firmness and are now pressing lower ahead of this afternoon’s Cattle on Feed report. But, Apr live cattle, down .350 to 117.450, is hanging in there with the latest cash bids hovering around last week’s $122/cwt range. Jun fats are down 1.100 to 101.900. May feeders are down .925 to 137.500. Trade estimates for April on Feed is 107.6, Placed in March is 90.9, and Marketed in March is 96.1.

HOGS: Hog futures is steady in the nearby May contract at 70.150, lower in the rest of the complex. Jun is down 0.525 to 77.550. Jul hogs are down 0.650 to 80.050. The recent trend remains positive, however, underpinned by surging cash markets.




Market Commentary provided by:

Stewart-Peterson
137 South Main Street, West Bend, WI 53095
Phone: 800-334-9779
E-mail: rmainville@stewart-peterson.com
Web: www.stewart-peterson.com