Stewart-Peterson Market Commentary

Closing Commentary - July 27, 2016

Top Farmer Mid-Day Update 7-27-16

CORN:Corn futures are firm with Dec up 3 cents to 3.42-1/2 while respecting this week’s 8-1/4 cent trading range. Higher beans, good crop conditions, lower crude and a firm dollar are pushing corn prices mostly sideways. USDA reported a 247,912 metric tons sale of corn for delivery to unknown destinations this morning. Of the total, 74,064 metric tons is for delivery during the 2015/2016 marketing year. Weekly ethanol stats will be out shortly.

SOYBEANS:Soybean futures are up, posting double-digit gains at mid-session with Nov up 15 to 9.89 as Aug weather forecasts show high heat. The contract peaked at 9.95 before trimming gains. In addition, USDA said China bought 131,000 tons of beans this morning, 65,000 for delivery during the 2015-16 marketing year and 247,912 tons were sold to Unknown Destinations with the majority, 173,848 tons, for delivery during the 2016/2017 marketing year.

WHEAT:Wheat futures opened firm with Dec CBOT wheat and Dec KC wheat up 2 cents to 4.44 and 4.40-1/2, respectively and that is where they’re trading at mid-day in light action. Higher row crops is helping offset a strong dollar and mostly bearish wheat fundamentals as U.S. harvest begins to wind down.

CATTLE:Cattle futures are flat to weaker with contracts consolidating inside Tuesday’s trading ranges. Oct live cattle are down .050 to 112.525; Oct feeders steady at 140.225. Futures are choppy as traders gauge near-term demand from meat packers in the cash markets.

HOGS:Hog futures are down again following a brief reprieve from the free-fall experienced over the past month. Oct hogs are down .800 to 62.825 while trading below all its moving averages. The steep drop in pork prices and swelling hog supplies continue to hammer the cash market, with prices expected to range 50cents to 1.50/hundredweight below previous sales. For the week, an estimated 2.18 mil hogs are expected to be processed, including 90,000 on Saturday. That week's total would be 2.4% higher than a year earlier.

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