Stewart-Peterson Market Commentary

Closing Commentary - October 23, 2017

Top Farmer Opening Calls 10-23-17

CORN:Corn futures are unchanged with Dec at 3.44-3/4 while holding contract low support. If that support floor at 3.42-1/2 gives way, it would open the door to a fresh selling wave and reignite the larger downtrend where a bearish objective on the weekly continuation chart is seen at 3.28-1/2. For now, funds are seen holding a lofty 186,000 short corn contracts. Higher trade in the dollar, up 30 points, is seen acting as a weight on commodities.

SOYBEANS:Soybean futures are flat/weak. Nov beans, off 1- cents to 9.77-1/4, continue to slowly ease, emboldened by Friday's bearish outside day. On the upside, 10.03-1/4, the intra-day high from Oct 13, looks to be a near-term top for the contract as harvest progresses. On the downside, 9.77, the high from Oct. 9 was breached overnight and may open the door to more pressure. Funds are estimated net long 64,000 contracts of soybeans; net long 17,000 lots of soymeal, and; net long 32,000 lots of soyoil.

WHEAT:Wheat futures are mostly steady and close to contract low support in the winter wheat contracts. For Dec CBOT, 4.22-1/2 is serving as that bearish target for the trade. A selloff and close below that floor would signal the start of a fresh selling wave for wheat. The weekly continuation chart for wheat shows potential support at 4.12-1/4, but a stronger floor lies at 3.94-1/2. On the upside, the 10-day moving average at 4.33-1/4 is first resistance and secondary resistance comes in at 4.42-3/4, the Oct. 16 high.

CATTLE:Live cattle futures are sharply lower in reaction to Friday's COF 'Placement' number. Oct live cattle are down 1.000 to 110.675. Dec cattle are down 1.200 to 115.400; and Nov feeders are down 3.000 to 150.100.

HOGS:Hog futures are mixed with Dec up .1500 to 64.850, and Feb down .250 to 68.850. Today's cash markets look steady to $1.00/cwt higher in keeping with the trend for the month of October.

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