Top Farmer Opening Calls 3-13-18

CORN: Corn futures are 1 to 2 cents higher, with new crop Dec at 4.09 and Jul futures at 4.00. Dec futures are attempting to move past seven month highs at 4.10. At least early on in the session, yesterday's recovery from sharp losses appears to have renewed the market's confidence in buying corn. In addition, yesterday's export inspections data was a 10-month high, further bolstering buying interest. Corn futures are overbought on some technical indicators, but with fundamentals appearing to justify current prices, a correction is not necessarily imminent.

SOYBEANS:Soybean futures are up 2 to 6 cents this morning, with Nov futures up 2-1/2 cents to 10.38-1/2. Soybeans recovered nicely from sharp losses Friday, and are currently working to break through near-term overhead resistance levels. Both soybean and soybean meal futures have corrected out of overbought territory, a major pressure point towards the end of last week. The market appears to view soybeans as a value at these levels for now, and breaks above moving average resistance levels should open up some more topside.

WHEAT: Wheat futures are higher this morning, after correcting from overbought levels from the early March rally. Chi futures are up 3 to 4, KC up 6 to 7, and Mpls up 3 to 4. Winter wheat harvest acres and potential yields continue to make traders nervous, as crop conditions in Kansas are still deteriorating. According to the National Weather Service, the area from Texas to southwest Kansas have the driest December to January on record. Futures are also drawing support from a 1% increase in Russian wheat prices last week, and a 1.5% increase in Ukraine wheat prices.

CATTLE: Cattle futures are mixed this morning, trading in extremely tight trading ranges in the face of conflicting fundamentals. On one hand, beef prices are at their highest levels since June, while on the other hand, the supply of cattle for Q2 looks extremely heavy. Apr futures are currently holding a discount of about $5.00 to the cash market, which should keep futures supported. Near-term support for the Apr contract at the 200-day moving average comes in at 120.15.

HOGS:Hog futures are mixed in the opening minutes of today's session, keeping with the recent theme of consolidation. Prices are oversold, but the fundamental picture looks bearish enough to justify these levels. The Apr contract briefly traded above its 10-day moving average resistance level, but has fallen back below. Carcass cutouts closed 1.45 higher yesterday afternoon to 74.88, providing some much needed stability to hog markets.




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