Top Farmer Midday Update 10-11-18
Stewart-Peterson Commentary - SPC - Thu Oct 11, 10:39AM CDT

CORN: Corn futures are down 1 to 2 cents this morning, with Dec down 1-1/4 to 3.61-1/2 and Mar down 1-1/2 to 3.73-1/4. Trade has been very quiet this morning, with futures prices still holding their 20-day moving average support levels. Crude oil is down over 1.40 providing additional pressure, but most traders are waiting to see the USDA report results. Yesterday, funds sold 5,000 contracts of corn leaving them short an estimated 70,000 contracts.

SOYBEANS: Soybean futures are down 2 cents with Nov trading at 8.50-1/4 and Jan at 8.64. Soybean futures briefly dipped below their 20-day moving average support this morning, but have since rebounded. News that President Trump and Chinese leader, Xi, plan to meet in late November was supportive, though not a game changer at this point as supply and demand data will be the main event for this week. During yesterday's session, funds sold an estimated 7,000 soybean contracts leaving their net position around 57,000 short contracts.

WHEAT: Wheat futures are mixed this morning, with Dec Chi wheat down 1/2 cent to 5.10, Dec KC wheat steady at 5.16-1/4, and Dec Mpls wheat up 2 cents to 5.93-3/4. Today's USDA report is not expected to be a major game changer for the wheat markets, but traders are still unwilling to take too much of a stand before the data is released. Questions about winter wheat planting have begun to arise due to excess moisture. Funds sold an estimated 3,000 contracts of wheat on Wednesday and are short currently about 19,000 contracts.

CATTLE: Cattle futures are mixed this morning, with the spot month Oct live cattle contract up 30 cents to 112.37 and Dec up 5 cents to 116.55. Oct feeders are up 25 cents to 156.15 and Nov feeders are up 7 cents to 156.25. While fundamentals are still as weak as they were yesterday, the losses were sharp and prices remain within yesterday's ranges at this point. Moving average lines are beginning to make bearish crossovers, contributing to the negative technical picture. Feed lot conditions remain rough but the weakest beef values of the year make it difficult to rally cattle.

HOGS: Hog futures are mostly lower this morning, with Oct steady at 68.47, Dec down 1.40 to 54.55, and Feb down 1.20 to 63.32. The Dec contract has held its 100-day moving average level today and has since bounced up to hold support at its lower Bollinger Band. The selling is likely a risk-off type of move as another case of swine fever has been detected in northeastern China, the third case this week.

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