Stewart-Peterson Market Commentary

Closing Commentary - June 25, 2018

Top Farmer Midday Update 6-25-18

CORN: Corn futures are trading 6 cents lower at midday today, with Dec down a nickel to 3.73. Dec has traded as low today as 3.70-1/2, but has since found buyers near the psychologically significant level. Dec corn has yet to take out the recent highs despite expectations for steady to slightly worse crop conditions on this afternoon's report.

SOYBEANS: Soybean futures are trading 18 to 20 cents lower at midday, with Nov down 19-3/4 cents to 8.96-1/2. Closes at these levels would be new contract lows, with the only long term support at the spike lows put in last Tuesday. Without much in the way of positive short term fundamentals, sellers will likely remain inactive before Friday's Grain Stocks and Acreage report.

WHEAT: Chi wheat futures are trading 8 to 11 cents lower at midday today, with Sep Chi wheat down a dime to 4.94-1/4. KC wheat futures are trading 12 to 15 cents lower, and Mpls wheat futures down 5 to 7. The U.S. dollar is lower today, but with Russian and Ukraine wheat export prices falling 1.5% last week, international export business is expected to remain slow.

CATTLE: Cattle futures are trading sharply lower at mid-session, down 2.00 to 3.00 in the live markets, and down 3.00 to 3.50 in the feeder cattle markets. Gap down opens and markets touching limit down paints a very negative technical picture. Falling beef values, growing cattle herds, and plentiful beef stocks are the three major pressure points today.

HOGS: Hog futures are trading 1.00 to 1.65 lower at mid-session, despite pork values at their highest levels since last August. Friday's Cold Storage report was a negative, and the market does not appear to have great expectations for Thursday's Hogs and Pigs report. Closes at current levels would be new contract lows, and likely embolden more sellers.

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