Top Farmer Midday Update 9-22-17

CORN:Corn futures are higher with Dec up 5-1/4 cents to 3.55-1/2 while getting back to a 1-1/2 week high. It would appear to be more along the lines of technical buying after grinding higher the past couple of days. However, part of the trade still does not believe yield forecasts from the USDA. Double digit gains in beans and a lower dollar is also noted. In tender activity, South Korea seeks 55,000 tons of optional-origin corn. The dollar is down 35 points, crude flat/weak.

SOYBEANS:Soybean futures are higher with Nov up 14 cents to 9.84-3/4 and up about 17 cents for the week. Mexico bought 190,000 tons (7 mil bu) of beans in a morning export announcement, adding to a steady line of business on the demand side of the fundamental equation. There are also some distant weather concerns for South America. Globally, it remains dry in northern Brazil, Russia and Australia, and too wet in Argentina.

WHEAT:Wheat futures are firm with Dec CBOT and KC contracts sitting atop new 5-week highs. Though in a constructive short-term technical trend above contract highs, wheat is likely garnering spillover strength from row crops and support from a weak dollar as the week comes to end.

CATTLE:Cattle futures have traded two-sided so far today, with nearby contracts respecting Thursday’s ranges ahead of this afternoon’s Cattle on Feed and Cold Storage data. Oct live cattle were recently up .450 to 110.550. Dec is up .600 to 116.800, and Oct feeders are off .200 to 155.675. COF trade estimates have ‘placements’ at 97.1% vs a year ago, ‘marketings’ at 105.8%, and ‘on-feed’ at 102.7%.

HOGS:Hog futures gapped lower to start the day on follow-through selling from Thursday’s sharp declines. Lowered cash bids and falling cutouts prompted Oct hog futures to fall hard, leaving no doubt there’s more downside to the nearby contract. The new contract low now stands at 55.674, after prices fell 1.700 this morning. Dec is down .425 to 57.075. Cold Storage Data will be out today.

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