Stewart-Peterson Market Commentary

Closing Commentary - September 28, 2016

Top Farmer Mid-Day Update 9-28-16

CORN:Corn futures are a penny lower at mid-session with very little trade volume noted. Dec corn, trading just above 3.30 is below its 10, 20 and 40-day moving average lines. USDA reported a huge export sale of 1,577,340 tons of corn to Mexico this morning. Of the total, 1,036,320 tons are for delivery during the 2016/17 marketing year. The news did little to boost futures though in an otherwise light news day. We expect choppy, two-sided trade to continue ahead of Friday's Sept Crop report. Today's weekly ethanol report showed 101.15 mil bu of corn used in last week's production. The figure coincides with the weekly average needed to meet this year's USDA estimate of 5.275 bil bu. Crude oil is flat/firm; the dollar up 24 points.

SOYBEANS:Soybeans futures have reversed early declines while posting modest gains at mid-session. Nov beans were recently up a penny to 9.53-1/2 while consolidating at the low end of that contract's recent range and below all moving average lines. Two export sales were reported by USDA this morning. USDA said 211,171 tons of beans were sold to an unknown destination and 133,000 tons to China, both during the 2016/17 marketing year.

WHEAT:Wheat futures are firm on talk of frost effecting Australia's top wheat-growing state. Dec CBOT wheat and KC wheat contracts were recently 2 cents higher to 4.06 and 4.21-1/4, respectively. Some light technical buying is also noted as further signs of a bottom surface in this long stretch of consolidation trading.

CATTLE:Cattle futures are firm after rebounding from a gap-lower start. Dec live cattle were recently up .175 to 103.300 after finding support near the Sept 8 contract low where short covering quickly ensued. Oct feeders are in the midst of a bullish reversal off of this morning's new contract low. The contract was recently up .650 to 127.500. Sharply lower cash market results have provided much of the push lower in futures. However, the futures market is likely reflecting the fundamental weakness after dropping to their lowest levels in weeks.

HOGS:Hog futures continue to struggle as outlined by a new round of contract lows this morning. Dec hogs are up .525 to 46.975 with a new floor in at 46.150. We'll get a Quarterly Hogs and Pigs report on Friday, but it appears that the path of least resistance is lower paved by meat packers continuing to press their bids lower amid high supplies. This week, an estimated 2.418 mil hogs are expected to be processed which would be 6.6% more than this time in 2015.

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