Stewart-Peterson Market Commentary

Closing Commentary - May 24, 2017

Top Farmer Midday Update 5-24-17

CORN:Corn futures are unchanged and glued to the mid-section of their 2-1/2 month trading ranges. For July corn, that’s between 3.79-1/2 and 3.60-3/4. Dec corn, at 3.88 is situated between that contract’s recent high at 3.95-3/4 and 3.78-1/4 with a firmer bias as wet conditions favor those looking for reasons to be bullish corn. Barring any market-moving news, prices look to maintain this pattern going into the three day Memorial Day weekend. Weekly Ethanol Stats showed corn usage in last week's production estimated at 106.05 mil bu. This crop year's cumulative corn use for ethanol production for this crop year is 3.99 bil bu. Corn use needs to average 98.381 mil bu per week to meet this crop year's USDA estimate of 5.45 bil bu. Weekly Export Sales will be out tomorrow. Outside markets are also unchanged.

SOYBEANS:Soybean futures have been firm all morning led by a 2-1/2 cent gain in July beans to 9.50-3/4. Nov is up a penny to 9.49-1/2. Bean contracts are lethargic in today’s light trading, hovering within a dime of their springtime lows.

WHEAT:Wheat futures are firm with July CBOT contracts up 2-1/2 cents to 4.32, and July KC up 4-3/4 cents to 4.35-1/4. The firm undertone may be attributed to concerns about the excessive moisture hindering wheat slated to be harvested in the coming weeks in the southern Plains. In tender activity, Japan reportedly has passed on a 100,000 ton tender.

CATTLE:Cattle futures were sharply lower both prior to, and after early results of the Fed Cattle Exchange where $130 to $130/cwt trade has developed. June live cattle are down 1.400 to 121.625 while keeping a sizable discount to cash. Aug feeders are down 3.275 to 148.125. Friday’s Cattle On Feed reports will be out earlier than normal, at 11:00 AM CT ahead of the Memorial Day holiday schedule.

HOGS:Hog futures higher in the front three contracts, lower in the deferreds. June, July and Aug futures made new contract highs in early moves to 80.950, 80.850 and 80.300, respectively, on gains of 30 to 70 cents as commercial buying interest elevates values. Higher cash bids of up to $1.00/cwt are noted.




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