Stewart-Peterson Market Commentary

Closing Commentary - July 20, 2018

Top Farmer Opening Calls 7-20-18

CORN: Corn futures are weaker with Dec down a penny to 3.64 while holding onto the contract’s 20-day moving average. The 40-day is at 3.81-1/2. The USDA confirmed that export sales of U.S. wheat and corn to Argentina that were reported in its weekly export sales report on Thursday were incorrect; the agency would not disclose further details about the error; USDA will correct the erroneous sales in its weekly report on July 26. After making a new high yesterday, the dollar is down 54 points, crude is up 23 cents, while mirroring upward movement in corn prices this week.

SOYBEANS: Soybean futures opened 4 lower to 8.57-1/2 in the Nov contract. There was a flash on the wires that said Trump was ready to put tariffs on $500 bil of Chinese imports. This saw beans back off after trading as much as 7 cents higher late in the overnight session. Except for soyoil, markets are generally higher for the week so far, however, crushing margins had a rough week.

WHEAT: Wheat futures are higher and have begun trending higher near-term while generally trying to recover from recent lows back to pivotal price areas. Sep CBOT wheat is up 4 to 5.08-1/2. Since June 19, the contract wheat has been consolidating in a neutral range between major resistance at 5.16-1/4, the July 6 high and major support at 4.71- 1/4, the July 11 low. Tuesday's gains above key short-term moving averages give the near-term technical edge to wheat bulls within that larger range. Sep KC wheat is up 5-1/2 cents to 5.02; and Sep MPLS wheat is up 6 to 5.42-3/4.

CATTLE: Cattle futures opened flat/weak ahead of today’s Cattle on Feed report due out after the close with estimates for on feed at 104.1, Placed in June at 101.3; and marketed in June at 100.8. Aug live cattle are down 0.200 to 108.700, Oct down 0.175 to 110.475; and Aug feeders are down 0.375 to 154.075.

HOGS: Hog futures opened weaker with nearby Aug hogs down 0.450 to 66.800, Oct down 0.525 to 51.650, and Dec down 0.425 to 46.425.

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