Stewart-Peterson Market Commentary

Closing Commentary - September 16, 2014

Stewart-Peterson Mid-Day Update 9-16-14

CORN: Corn futures are 3 cents lower after a firm start. Traders are digesting recent USDA FSA acreage estimates that ultimately point toward a record crop, sending prices on the defensive. Dec futures were recently 3 cents lower to 3.40 after rising above 3.50 to a 1-1/2 week high. FSA increased projections for planted acres to 84.8 mil acres, up from 83.3 mil last month. Technically, Dec futures are still trading above Monday's fresh contract low of 3.35-3/4.

SOYBEANS: Soybean futures fell 10 cents with Nov dipping to a session low of 9.76-3/4. Short-covering strength was noted overnight and before FSA increased planted acreage estimates to 80.8 mil acres, up from 79.2 mil in Aug. Strong crop conditions ratings also helped fuel selling on the way to session lows.

WHEAT: Wheat futures made new contract lows for the seventh consecutive day today. Dec Chi futures now have a contract low of 4.91. Dec KC wheat bottomed at a fresh low of 5.80 this morning, down 2 cents. The market is technically oversold and has shown signs of trying to find a bottom. However, pressure from neighboring row crops, as well as the recent strength in the dollar, is helping weigh on a fundamentally bearish global supply scenario.

CATTLE: Cattle futures traded sharply lower early as the trade anticipates slowing seasonal demand. Dec live cattle fell to a 2-week low of 157.45 before recovering. That contract was recently down .775 to 158.250. Nov feeders are down .550 to 223.200 while maintaining Monday's trading range. A .91 drop in wholesale choice-grade beef prices on Monday helped send futures contracts down early.

HOGS: Hog futures are lower pressured by widespread selling in the livestock markets. Feb hogs are down 1.00. Oct hogs are up .350 to 106.425 as cash hog prices look to trade flat to 1.00 higher today. In addition, wholesale pork prices jumped 2.57 on Monday.

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