Stewart-Peterson Market Commentary

Closing Commentary - June 18, 2018

Top Farmer Opening Calls 6-18-18

CORN: Corn futures are lower as prices continue to drift in a bearish pattern into the growing season. Managed Money is now seen short corn, an estimated 6,000 contracts, after heavier-than-expected long liquidation last week. Jul corn is down 3-1/4 cents to 3.58 ahead of Friday's new low of 3.55-3/4. Dec is down 3-1/2 cents to 3.79-1/4. With wet weather and forecast for more normalcy, price rallies will be difficult, and trade wars are never bullish. Weekly Export Inspections will be out at 10 AM CT today followed by Weekly Crop Ratings after the close. Outside markets are quiet this morning.

SOYBEANS: Soybean futures are weaker on weather and the bearish influence from trade concerns with China, Canada, Mexico and Europe. Jul beans are off 2 cents to 9.03-1/2 and have already taken out Friday's new low of 9.03 late in the overnight session. Nov beans are down 1-1/4 cents to 9.29-1/4 with Friday's low of 9.27-1/4 a bearish target. Managed Money is now seen net short and estimated 28,000 contracts of soybeans; net long 76,000 lots of soymeal, and; net short 80,000 lots of soyoil.

WHEAT: Wheat futures are lower while leading the grain and oilseed complex. Jul CBOT wheat is down 7 cents to 4.92 and within a dime of the contract's 200-day moving average support. On the upside, the 100-day MA is at 4.96-3/4. Jul KC wheat is down 8 to 5.11-3/4 cents with that contract's 200-day MA down at 4.96-1/4, and the 100-day serving as resistance up at 5.20-1/2. Russia is the only real hot spot for the wheat bulls with widespread U.S. moisture hitting at least some isolated areas in U.S. wheat country with more in the forecast that will be viewed as beneficial, though slowing harvest in some areas.

CATTLE: Cattle futures are firm after a late session push higher on Friday that punctuated bullish outside-day trading ranges to end the week. Cash bids were said to have been raised to $113/cwt late in the day, but it's unclear if actual trade occurred. For now, Jun cattle are steady at 108.450. Aug cattle are up .225 to 105.000. Aug feeders are up .500 to 148.475.

HOGS: Hog futures are firm. Front-month Jul hogs are up .425 to 82.025 while trading above all of the contract's moving averages. On the downside, the 200-day MA at 80.400, and 10-day at 80.200 are converging to provide a support floor. Aug hogs are up .400 to 78.650 and below that contract's 100 and 200-day moving averages. Oct hogs are up .275 to 64.450.

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