Stewart-Peterson Market Commentary
Closing Commentary - August 30, 2016
Top Farmer Mid-Day Update 8-30-16
CORN:Corn futures are sitting at a new contract low of 3.18 on losses of 2-3/4 cents in the Dec contract this morning, pressured by a plethora of bearish indicators. Weekly crop ratings on Monday crept 1 point higher in the good to excellent rating, according to USDA. Meanwhile, wheat futures continue to fall into new contract lows. Crude is down 50 cents/bbl, and the dollar is at a fresh 3-week high. Funds were sellers of 11,000 corn contracts on Monday, opening the door for a possible test of chart support seen at the 3.00 level, the Sept 2009 monthly low.
SOYBEANS:Soybean futures tumbled double-digits despite good demand. Nov beans were recently down 12-1/4 cents to 9.52 after dropping to 9.49-1/2 earlier in the session. USDA announced a morning export sale of 126,000 tons of beans to an unknown destination for the 2016-17 marketing year. However, the path of least resistance is lower, and prices are now below 200-day moving averages. The Aug 2 low of 9.43 is the next level of support targeted by the bears, leaving the market with little chart support below that level.
WHEAT:Wheat futures are mostly lower, unable to hold Monday's contract low support. Dec CBOT wheat fell 4 cents to a new low of 3.93-1/2 as bearish fundamentals and strength in the dollar put downward pressure on contracts. Dec KC wheat is down 1/4 cent to 4.02 after pressing into a new low of 3.98-1/2.
CATTLE:Cattle futures extended losses this morning. Oct live cattle fell to a new contract low of 104.550. The contract was recently down .375 to 104.700. Oct feeders are down .900 to 134.475. Aug contracts will expire tomorrow, and the cattle complex lacks any kind of news to keep futures from falling. Cash cattle markets are quiet today though a few sales were reported at lower levels on Monday.HOGS:Hog futures are up at mid-session with Oct advancing .375 to 61.750. The contract peaked today at 62.175, a fresh 1-1/2 week high as the market ascends to the upper half of its sideways trading ranges. Lower cash bids today should keep rallies in check for the time being.
Market Commentary provided by: Stewart-Peterson 137 South Main Street, West Bend, WI 53095