Stewart-Peterson Market Commentary

Closing Commentary - October 20, 2017

Top Farmer Opening Calls 10-20-17

CORN:Corn futures are fractionally higher, up 1/2 cent to 3.49-1/2 (Dec) following two morning export sales totaling 245,000 tons (9.6 mil bu) for the 2017-18 marketing year. Of the total, 125,000 tons is for an unknown destination, the balance to Spain. After a strong week of harvest, a cool air mass will move into the Corn Belt, Delta, and Southeast Tuesday into next Thursday and promote below average temperatures. We'll look for more low volume, two-sided trade today, though, as has been the case all week. Coming into today's trade, Managed Money remains heavily net short (an estimated 158,000 corn contracts). Crude down 25 cents amid a 34 point rise in the dollar.

SOYBEANS:Soybean futures are 6-1/2 cents higher with Nov at 9.92, favoring Managed Money's net long 55,000 contracts of Soybeans; net long 19,000 lots of Soymeal, and; net long 31,000 lots of Soyoil. A morning export sale to China was reported for 198,000 tons (7.3 mil bu). For South America, the latest GFS model run has a gradual increase of shower activity from Mato Grosso to Sao Paulo Sunday through the end of October and a boost in rainfall for Goias through southern Minas Gerais; more rain is expected to occur in these areas in early November.

WHEAT:Wheat futures are up 2 to 3 cents after friendly Weekly Export Sales on Thursday provided support. However, for the week ended October 12th, U.S. All Wheat sales are running down 4% versus a year ago, shipments 5% behind with the USDA forecasting an 8% decline on the year. Dec CBOT and KC contracts are at 4.31 and 4.34-1/2 come into today's trade between 4.35 and 4.32-1/2, respectively, while oscillating around the contracts' weaker 10-day moving averages.

CATTLE:Cattle futures are firm ahead of this afternoon's Cattle on Feed report. On average, the estimate for 'on-feed' for Oct is 104.7%; Placed in Sept at 107.5%; and, Marketed in Sept at 102.6%. Oct live cattle, up .275 to 111.475 are at a premium to this week's cash trade. Dec cattle are up .400 to 116.550; and, Nov feeders are up .500 to 153.275.

HOGS:Hog futures are firm, underpinned by expectations for packers to bid up cash hogs again today. Dec hogs are up .250 to 64.500 in a bid to take out yesterday's more than two-month high of 64.650. Feb hogs are up .250 to 68.725.

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