Stewart-Peterson Market Commentary

Closing Commentary - January 24, 2017

Top Farmer Mid-Day Update 1-24-17

CORN:Corn futures are lower at mid-session, prompting ideas of a near-term top in the market after surging to 6-month highs during the past few sessions. March corn, down 5 cents to 3.64-1/2, is in the midst of a bearish key reversal should the contract close below Monday’s low. The move would show a failure at the contract’s 200-day moving average. Dec is down 4 to 3.92. Market pressure comes on the heels of a morning export sale announcement of 125,000 tons (5 mil bu) of 2016-17 corn going to an unknown destination, according to USDA. Informa came out with their latest acreage estimates for 2017. The firm pegs corn acres near 90.5 mil vs 94 mil last year; The 2017 corn yield is estimated at 170.4 bpa which suggests a crop near 14.170 bil bu vs 15.148 this year.

SOYBEANS:Soybeans are down slightly in light trading as weather uncertainty in South America plays out. March beans are off 1/2 cent to 10.57-1/4 while trading a fourth consecutive day of lower highs and lows on the daily chart. Nov is down 1/4 cent to 10.25. Contracts started the day firm following a bounce overnight. We did get a flash export sale reported this morning showing bean sales to an unknown destination and Mexico for 163,000 tons (6 mil bu), the majority for 2016-17 beans and 112,000 tons (4.1 mil bu) the majority for 2017-18, respectively. Informa estimates U.S .2017 soybean acres near 88.6 mil vs 83.4 last year, and the 2017 soybean yield near 47.2 bpa which suggests a crop near 4.153 bil bu vs 4.307 this year.

WHEAT:Wheat futures are lower with March CBOT wheat down 3-1/2 to 4.29-3/4; KC down 1-1/2 cents to 4.43-1/4. But both contracts are holding the high ground after forming a bottom in Dec. Informa estimates U.S. 2017 wheat acres near 45.8 mil vs 50.2 last year and a yield near 47.1 bpa which suggests a crop near 1.877 bil bu vs 2.310 this year.

CATTLE:Cattle futures are firm with April fats up .350 to 119.525, capped by technical resistance near the 120.000 price level. March feeders are up .425 to 131.100. Good beef market performance and hopes for continued strength in this week’s bids favor the bulls today.

HOGS:Hog futures are firm with most contracts trading inside yesterday’s ranges. April hogs saw a fresh 2-week low at 67.175 on Monday where buyers emerged. Today the contract is up .400 to 68.175 with cash market bids steady to 50 cents/cwt higher.

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