Top Farmer Midday Update 2/28/18

CORN: So far this year, corn futures are putting in one of their strongest perfomances today, as buying interest pours into the grain and oilseed complex, mostly on weather, and in corn, demand. Managed money is adding long positions this week. Coming into today’s trade, they were estimated long 51,000 corn contracts. Weekly Ethanol Stats, showing 108.6 mil bu of corn used in last week’s ethanol production, continue to outpace the 103.053 bu per week needed to meet USDA’s annual projection of 5.525 bil bu. Weekly Export Sales will be out tomorrow morning with expectations for strong business. May corn is at its session high of 3.84-3/4 on gains of 5-1/2 cents. Dec corn has finally cleared the $4 price level and is up 3-1/4 cents to a six-month high of 4.03-1/4.

SOYBEANS:Soybean futures are higher with rain evaporating from the Argentinian weather forecasts, sending meal contracts to contract highs on ideas that the world’s leading exporter will realize further production cuts. May beans are up 4-1/2 cents to 10.54, after falling short of hitting this week’s new high at 10.59-1/2. Nov beans are up 2-1/2 to 10.34-1/2 with a new contract high etched at 10.35-1/4. USDA, in a morning announcement, said 250,000 tons of 2017-18 marketing year beans were sold to an unknown destination.

WHEAT: Winter wheat futures are sharply higher amid short-covering as falling crop conditions in the U.S. spurring talk of abandonment in the U.S. Plains due to drought, and threat of winter kill in the former Soviet Union and EU spark the rally. Complications with shipping logistics along the Ohio River due to flooding is also noted. May KC wheat is seeing gains of 19 cents to 5.23-3/4, nearly a nickel off today’s high after the contract broke through stingy 200-day moving average resistance, triggering buy stops. May CBOT wheat is up 20 cents to 4.96-3/4. Sep MPLS wheat is up 11 cent to 6.36-1/2.

CATTLE: Cattle futures are still mixed with a weaker bias. Feb live cattle are up .275 to 128.300. That contract expires today, leaving Apr down .650 to 123.600, discount to cash. Today’s Fed Cattle Exchange saw one small lot of KS cattle sell at $126/cwt, $2.00/cwt lower than last week. Apr feeders are down 1.275 to 147.925 while slumping to a 2-1/2 week low.

HOGS:Hog futures are lower led by the nearbys as prices test last week’s lows. Apr hogs are down 1.500 to 68.450 after gapping lower to start the day. Support lies at last week’s low of 68.025. Jun hogs are down .875 to 81.150. Back-month futures are being pulled lower, too. Meanwhile, today’s cash markets look to uncover bids steady to $1.00/cwt lower.

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