Top Farmer Midday Update 3-8-18

CORN: Corn futures had a positive reaction to today’s USDA report. May corn is up 6-1/4 cents to a new high for the move at 3.93-1/4. Dec peaked at a new contract high of 4.09-1/4 on gains of 3 cents. Both contracts are trading an ‘outside day’ on daily charts. USDA cut U.S. corn stocks from 2.352 bil bu to 2.127, below the range of trade guesses. The highly anticipated Argentine forecast came in at 36 mil metric tons, within trade estimates, and down from the Feb estimate of 39 mmt. Brazil’s Conab numbers this morning showed Brazil’s 2017-18 total corn crop at 87.28 mil tons vs 88 mil in Feb and 97.84 mil tons last season. This morning’s USDA Weekly Export Sales exceeded trade estimates coming in at 1.86 mil tons (73.2 mil bu) for 2017-18; 70,300 tons for 2018-19. Japan bought 110,000 tons of 2017-18 corn in a morning USDA announcement.

SOYBEANS:Soybean futures are down 3 to 4 cents after USDA upgraded U.S. ending stocks by 25 mil bu to 555 mil. The figure was higher than the average trade guesses. Argentina’s bean crop is now estimated at 47 mil metric tons, down from 54 mmt in Feb, and below the average trade estimate. Brazil’s production number was 113 mmt, 1 mmt below the average trade estimate, but up 1 mmt from the Feb figure. This morning, USDA reported Weekly Export Sales at a stellar 2.51 mil tons (92.2 mil bu) for 2017-18 marketing year crop; 143,900 tons for 2018-19.

WHEAT: Wheat futures are mostly unchanged with a weak bias. May CBOT wheat is off 1/2 cent to 4.97-1/4. May KC is steady at 5.34-1/4. USDA pegged U.S. wheat ending stocks at 1.034 bil bu, up from 1.009 bil bu last month. World ending stocks were upgraded to 268.9 mmt from last month’s 266.1 mmt figure. Weekly Export Sales were 391,500 tons for 2017-18; 36,900 tons for 2018-19.

CATTLE: Cattle futures are down hard after selling accelerated below support levels. Apr cattle are 1.900 lower to 121.125, a seven-week low. Jun fats are down 1.875 to 112.950 where the contract’s 200-day moving average is situated. Apr feeders are down 3.00 to 142.375.

HOGS:Hog futures are lower again as momentum to the downside continues, led by the May hog contract. May is down .300 to 72.300, $1.00 of today’s new low for the move. The contract low is at 70.600, hit on August 30 of last year. Nearby Apr hogs are down .200 to 67.600 while trading an ‘inside day’. That contract found support above yesterday’s new low of 66.425. Jun hogs are down .600 to 78.000.

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