Top Farmer Midday Update 9-28-18
Stewart-Peterson Commentary - SPC - Fri Sep 28, 10:41AM CDT

CORN: Corn futures are mixed this morning, with Dec down 1/4 cent to 3.64-1/2, and Mar steady at 3.76-1/2. Trade has been very quiet this morning as traders' position ahead of the Grain Stocks report due out at 11:00 CT. Dec corn has traded as high as 3.66-3/4 and as low as 3.63. The 50-day moving average is directly overhead at 3.67-3/4. A significant movement above that level could trigger more short covering from index funds and more buying from commercials.

SOYBEANS: Soybean futures are trading 3 cents higher this morning, with Nov at 8.58 and Jan at 8.72. Prices were pulled 6-7 cents lower early in the session, but buyers have since stepped back in before today's Grain Stocks report. The 50-day moving average overhead is serving as strong resistance, currently at 8.63 for the Nov contract. Beans have reached as high as 8.59 today, so any strong breach of resistance could open up some room to the topside. However, direction today will ultimately be determined by report results.

WHEAT: Wheat futures are down slightly this morning, with Dec Chi down 2-1/2 to 5.10-1/2, Dec KC down 2 to 5.15-1/4, and Dec Mpls down 2-1/2 to 5.77-1/2. The sharply higher U.S. dollar is pressuring prices today, but some are beginning to worry that wet weather and snow could cause some lodging issues before the Canadian harvest in the next few weeks. Both winter week contracts have recovered from early-session losses, but the trend still looks lower barring positive report results.

CATTLE: Cattle futures are slightly higher this morning, with Oct lives up 20 cents to 113.42, Dec lives up 15 cents to 118.72, and Feb lives up 20 cents to 122.75. All live contracts are holding their 10-day moving average levels, showing solid strength into the end of the week despite expectations for slipping beef and cash values today. Technicals may be getting a bit overbought, but high consumer confidence and beef demand is keeping buyers interested.

HOGS: Hog futures are sharply higher this morning, finding buyers on yesterday's Hogs & Pigs report. Oct hogs are up 1.45 to 62.75, Dec hogs are up 2.45 to 57.92, and Feb hogs are up 2.02 to 65.50. After failing some technical support yesterday, buyers are stepping in again on a Hogs & Pigs report that was not necessarily positive, but at least not overly bearish. In addition, there is still interest in owning hogs long term due to potential ripple effects from the Chinese outbreak of African swine fever.




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