Top Farmer Opening Calls 01-03-18

CORN: Corn futures are fractionally higher with Mar up 3/4 cent to 3.54 in a short-term neutral-to-bullish correction off of contract low support at 3.46-1/2. On the upside, nearby resistance at 3.54-1/4 was breached overnight, which could lead to some upward momentum going into the Jan crop report scheduled for next Tuesday. Funds bought back 5,000 corn contracts on the first trading day of the year, trimming their net holding to an estimated 206,000 contracts as talk of La Nina makes headlines.

SOYBEANS:Soybean oil futures are leading the grain and oilseed complex higher today. Jan beans are up 5-1/2 cents to 9.60-1/2 after closing higher for the second consecutive session on Tuesday while building value above support and a minor daily low at 9.54-3/4. The recent sell-off from the December 5 high at 10.27 was steep and the bean contract is vulnerable to a consolidation or correction phase. On the upside, swing high resistance is seen at 9.76, the December 27 high.

WHEAT:Wheat futures are firm, underpinned by potentially harmful U.S. weather in the form of record cold temperatures affecting unprotected winter wheat regions. March CBOT wheat, up 2 to 4.35-1/2, gapped higher Tuesday, and closed higher, putting the contract above its 10, 20, and 40-day moving averages. That contract is now 25 cents above its contract low. Mar KC wheat is up 3-1/2 cents to 4.38-1/4, nearly 28 cents above that contract’s low.

CATTLE:Cattle futures are mixed, pausing from Tuesday’s sharply higher settlements, underpinned by weather and higher box prices. Feb live cattle are down .050 to 123.300. Apr is up .050 to 124.150, and Mar feeders are up .125 to 146.000 after trading up the daily limit on Tuesday in reaction to ideas that the impending sale of Five Rivers feedyards will happen soon which could reinvigorate the feeder cattle market.The on-line Fed Cattle Exchange will be activated at 10:00 AM CT today on the heels of last week’s $123/cwt trade which was up $3 from the previous week.

HOGS:Hog futures are again mixed following a round of bear-spreading on Tuesday, and the cash hog trade looks to remain in an uptrend with bids steady to $1.00/cwt higher today. New contract highs were formed in a handful of the deffered contracts on Tuesday and we may see some of the others take out their highs, if not today, this week sometime. For now, Feb hogs, up .325 to 71.000 are showing signs of exhaustion near range highs. April is up .225 to 75.075.

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