Stewart-Peterson Market Commentary

Closing Commentary - May 25, 2018

Top Farmer Opening Calls 5-25-18

CORN: Corn futures are up a penny and look to respect this week’s new highs leading to some decent U.S. new crop farmer selling. Monday is Memorial Day, and trade after today will not resume until Monday night. It has been a positive week for prices up to this point largely on money flow by specs and optimism on trade deals with China. Weather has also been a bit of a primer with nooks and crannies both in the U.S. and abroad having some production concerns. So far, there doesn’t appear to be too much of a fallout over the U.S. pulling out of talks with North Korea.

SOYBEANS: Soybean futures are 4 to 5 cents higher in a technical bounce off of yesterday’s slack trade and some bean sales to China. USDA said the leading importer of soybeans bought 312,000 tons of U.S. new crop beans and another 165,000 tons from an unknown destination. Light, pre-holiday trade volume may lead to some choppy movement within yesterday’s 12 cent trading ranges.

WHEAT: Wheat futures are up 6 to 7 cents, underpinned by expectations for diminished winter wheat yields this summer due to drought. And, dry weather in Russia and Australia. Managed money is seen building on their long SRW wheat position. We’ll see if that continues today. Otherwise, prices could see some pre-holiday profit-taking pressure.

CATTLE:Cattle futures are trading slightly lower in the opening minutes today, with Jun live cattle down 50 cents, Aug live cattle down 7 cents, and Oct live cattle steady. All feeder contracts out to Nov are slightly negative as well. The very quiet trade is no surprise today, as position taking has mostly wrapped up in front of this morning's Cattle on Feed report. Expectations for a hot weekend could draw some buying interest later on, but there probably aren't many traders ready to take a stance before herd data is released.

HOGS:Hog futures are trading mixed early this morning, with Jun hogs down 15 cents to 74.67, Jul up 72 cents to 77.50, and Aug up 70 cents to 76.05. The 3-day Memorial Weekend should provide some solid fundamental support with anticipation of heavy pork demand. Jun and Jul futures are making a move past the highs Wednesday, and trying to break towards Monday's open.

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