Stewart-Peterson Market Commentary

Closing Commentary - May 24, 2016

Top Farmer Mid-Day Update 5-24-16

CORN:Corn futures are firm though off their fresh 1-month highs forged earlier in the session. July corn is up 2-1/2 cents to 4.00-1/4. Dec is up 2 cents to 4.04-3/4. Support stems from talk of China's interest in U.S. sorghum and DDG. Spillover support from an upward reversal in beans is also noted. Today's strength counters pressure from new highs in the dollar and an above-average planting pace. On Monday, USDA reported 86% of the U.S. corn crop planted as of Sunday. The figure exceeds the 5-year average but was below trade estimates. Forecasts for scattered rain throughout the week favors crop development.

SOYBEANS:Soybean futures shrugged off a sharply lower start and were recently up on bull spreading. July beans were recently up 7 cents to 10.65-1/2. Nov futures are up 1-1/2 cents to 10.37-3/4. A higher close today would signal a bullish reversal after contracts slumped to two-week lows early in the session. USDA announced a 140,000 ton soybean sale to unknown destinations this morning for the 2016-17 marketing year. Soymeal contracts are also forming a bullish reversal following Monday's bearish reversal from contract highs.

WHEAT:Wheat futures are 4 cents higher to 4.66 in the July CBOT contract and 4.51 in July KC futures. Contract low support held this morning despite pressure from a stronger dollar and bearish fundamental view on the market. The upturn in row crops has definitely helped wheat so far today with short covering noted. Specs are net short the wheat market and long the row crop futures.

CATTLE:Cattle futures are sharply lower, falling for a fourth consecutive session. Aug live cattle were recently down 1.825 to 112.625, and Oct feeders are down 2.650 to 136.925. Expanded limits are in effect today following Monday's lock-limit lower settlement. However, traders have failed to push prices into those expanded limit ranges so far today. Pressure stems from additional selling tied to Friday's bearishly-construed placements figure in the Cattle-on-Feed report. In addition, wholesale beef prices on Monday fell 1.64/cwt. Cash cattle markets remain quiet today.

HOGS:Hog futures are flat to .250 lower. Aug hogs were recently down .150 to 78.575 in light trading. Spillover pressure from the cattle market is noted, and cash hog markets are steady to 1.00/cwt lower on questionable demand.

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