Stewart-Peterson Market Commentary

Closing Commentary - May 26, 2017

Top Farmer Midday Update 5-26-17

CORN:Corn futures are 2 to 3 cents higher in light, pre-holiday trading. June corn, at 3.72-1/2, is about where the contract started the week. Dec is at 3.90-1/2. After today’s close, next Monday night’s trade will reflect weekend weather that is expected to favor many, but continue to plague parts of the Eastern Corn Belt where wet conditions have already slowed planting progress as the month of May nears an end. Heading into the weekend, funds are estimated to be net short just under 200,000 contracts. An updated Commitment of Traders report will be issued after today’s close. Crude and the dollar are firm.

SOYBEANS:Soybean futures are down 4 cents putting Jul and Nov beans at new lows of 9.35-1/4. Residual technical selling from Friday’s break lower is noted amid a non-bullish atmosphere following increased producer selling in South America. Funds were sellers again across the bean complex on Thursday and are estimated to net short 61,000 bean contacts, 27,000 soymeal and 17,000 lots of soyoil.

WHEAT:Wheat futures are higher led by improving technicals in MPLS contracts as a dry weather pattern forms in the Northern Plains that could have a negative impact on spring wheat conditions. All three exchanges are seeing gains of 4 to 6 cents. July CBOT wheat is near its session high at 4.36; Jul KC wheat has peaked at 4.37-1/4. Funds are still net short an estimated 119,000 SRW contracts. In tender activity, Japan bought 117,800t U.S./Australian wheat; S. Korea bought 65,000t optional-origin feed wheat (thought to be Black Sea.

CATTLE:Cattle futures are lower across the board except for June live cattle, which is up slightly to 123.950, supported by its discount to this week’s cash trade near $131.00/cwt. Aug live cattle are down 1.000 to 120.400. Aug feeders are off 1.425 to 149.750. We’ll get an earlier-than-normal release of the latest Cattle on Feed report shortly, due out at 11:00 AM CT. The average trade guesses for On Feed is 100.8%; Placements - 106.8%; And, Marketings - 101.8%. June live cattle are up .300 to 124.275. Aug feeders are .275 to 151.400.

HOGS:Hog futures are higher as contracts continue to march forward into the holiday weekend. Jun hogs have peaked at 81.600 on gains of .650, successfully making new highs each of the last three days and making new daily highs six consecutive days. July hogs, too, made a new high, advancing .750 t0 81.325.




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