Top Farmer Midday Update 12-28-17

CORN: March corn futures are down 2-1/2 cents to 3.51-1/4 20-day moving average support after failing at 40-day moving average resistance up at 3.53-1/2. Trade volume continues to be very light with little fresh news or trade participation due to the holiday schedule. Thus, notable weakness in beans is seen spilling over into neighboring corn contracts. The dollar may be helping stem further losses as the currency slips to a nearly one-month low while losing 25 points today. Weekly Export Sales, normally released on Thursdays are delayed until tomorrow due to the markets being closed on Monday of this week.

SOYBEANS:Soybean futures are down 8 cents. Jan beans, at 947-1/2 are slumping back to resistance etched at last Friday's intra-day low of 9.46-1/2 ahead of First-Notice-Day tomorrow. Speculative funds are still seen holding modest to sizable net short positions in soybeans, a modest net long in meal, and near net even in soyoil. Weather-wise, some in the trade want to see more beneficial rains for some of the more important growing regions in Argentina over the coming weeks. Over the near term, rainfall forecasts look light and limited over the coming week. Brazil remains adequate with rainfall and, in some parts, too much. Argentina is expected to get high heat over the next two weeks. In other news, there was a wire story reporting that half of the U.S. soybeans exported to China this year would not meet Chinese rules for routine delivery in 2018.

WHEAT:Wheat futures are off 2 to 3 cents in winter wheat contracts while struggling to maintain a modest uptrend spurred by short-covering as U.S. HRW wheat areas of southern KS and northern OK may be vulnerable to crop damage by temperatures near and below zero Sunday and Monday mornings (Monday will be coldest). March CBOT wheat is at 4.25-1/2 with major support and a minor daily bottom at 4.10-1/2, the contract low hit on Dec. 12. On the upside, the Dec. 22 high at 4.29 is resistance and a bullish target. March KC wheat is at 4.24-1/4; March MPLS is at 6.18-3/4.

CATTLE:Cattle futures are higher after early two-sided trading, led by the nearby, soon-to-expire Dec live cattle contract. Cash bids have topped at $124/cwt so far this week with little activity so far, and Dec fats are keeping pace, up 1.700 to 123.725. Feb cattle are up .625 to 121.625, and March feeders are up .325 to 142.050.

HOGS:Hog futures are narrowly mixed with most contracts trading an 'inside day' near the top of their respective ranges. Dec hogs are up .050 to 71.050, below the high from Nov 29 at 72.250 and the contract high of 73.300 etched on Nov 1. Feb hogs are up .075 to 75.350. May futures are up. 300 to 80.300.

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