Top Farmer Midday Update 01-19-18

CORN: Corn futures are up 1-3/4 cents to 3.53 (Mar) while on pace to post a weekly gain of about 6 cents despite a non-bullish Jan crop report. USDA Weekly Export Sales were well above trade estimates 1.89 mil tons (74.4 mil bu) for 2017-18; 2,400 tons for 2018-19. Trade estimates ranged between 500,000 and 800,000 tons. We will get the weekly commitments report out after the close and see how much, if any, short covering we saw in corn. In outside markets, crude is down 43 cents, the dollar firm after matching Wednesday’s new low overnight.

SOYBEANS:Soybean futures have been fairly active this morning while challenging key resistance areas. March beans are up 4-1/4 cents to 9.77-1/2 while now trading both sides of the 200-day moving average. Early buying pushed the contract as high as 9.82-3/4, leaping both the 200-day and 40-day moving averages before trimming gains. For the week, the contract has advanced 15 cents; Soymeal up $12.00, and; Soyoil down 85 points. USDA Weekly Export Sales exceeded trade estimates, coming in at 1.24 mil tons (45.5 mil bu) for 2017-18; 287,700 tons (10.5 mil bu) for 2018-19. Meal sales fell in line with estimates; soyoil sales were above trade estimates. The Argentine growing season is ahead of us with some dryness concerns, Brazil is slowed in their harvest, and Brazilian farmers are not aggressive sellers as of yet. So, as of now, we don’t have much in the way of natural sellers in the market.

WHEAT:Wheat futures are tapering off amid disappointing exports. USDA Weekly Export Sales, at 153,100 tons (5.6 mil bu) reported for 2017-18, were below trade estimates (200,00 to 500,00 tons); 37.500 tons (1.37 mil bu) were reported for 2018-19. May CBOT and KC contracts are off 1 to 2 cents to 4.36-1/2 and 4.41-3/4, respectively, while holding a modest 2 cent gain for the week and at the same time finding a home within their near-term moving averages.

CATTLE:Cattle futures are down slightly after trading higher to start the day. Feb cattle are off .100 to 121.850. April is down .400 to 123.050, and March feeders are down .250 146.925. Cash markets, this week testing $120/cwt combined with lighter showlists, are sparking ideas of asking prices up around $125/cwt. Meanwhile, weather is increasingly becoming a factor in both feedyard and grazing placements where the central to southern plains are suffering from a lack of moisture.

HOGS:Hog futures are lower with Feb down .850 to 72.200, marking a third consecutive day of trading inside Monday’s 2.200 trading range. April is down .700 to 75.200.100 to 73.15. Talk of weaker cash trade and ample supplies moving forward is taking some of the starch out of futures ahead of the weekend. In addition, there is some anxiety over ensuing NAFTA talks.

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