Stewart-Peterson Market Commentary

Closing Commentary - April 25, 2018

Top Farmer Opening Calls 4-25-18

CORN: Corn futures are firm with Jul up 2 to 3.92 as prices rise back up to 10, 20 and 40-day moving averages that have served as support for much of this month. Major resistance lies at 4.01. Strong support for Jul corn is building at 3.85-1/4. Dec is up 2 to 4.08-1/4, while maintaining weather premium due to the slow start to the planting season. The problem is that any price strength will likely be met with additional farmer selling of both old crop and new crop.

SOYBEANS: Soybean futures are higher and may be seeing a bid underneath prices due to talk of the U.S. sending a representative to China to try to work out a trade deal. Jul beans are up 4-1/4 cents to 10.38-1/4 and are stabilizing above key 100 and 200-day moving average support. Nov beans are up 4-1/4 cents to 10.38-1/4 in a generally constructive chart pattern, though range-bound near-term.

WHEAT: Wheat futures are higher on short-covering and news that there might be some freeze damage to winter wheat in KS. However, Russia’s crop is expected to be a burden on global supplies, though there was a news story that a private forecaster sees production in the former Soviet Union near 72 to 78 mil metric tons compared to last year’s 85 mmt. Either way, U.S. wheat is not that competitively priced. Jul CBOT wheat is up 4 cents to 4.88-1/4 after forming a large bullish outside day on the daily chart on Tuesday. KC Jul wheat is up 4-1/4 to 5.16-1/4. Sep MPLS wheat is up 1-1/2 cents to 6.07-3/.4.

CATTLE: Cattle futures are mixed ahead of today’s mid-morning Fed Cattle Exchange trade. Apr live cattle are up 0.450 to 121.550. Jun cattle are steady at 105.050. May feeders are down 0.150 to 140.000.

HOGS: Hog futures are weaker with nearby May hogs down 0.450 to 67.000. Jun hogs are down 0.600 to 74.225. Jul is down 0.500 to 77.500. All three contracts have etched out a contract low, as well as a corrective, near-term top with cash markets looking choppy the remainder of this week.

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