AgriCharts Market Commentary

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Corn

Corn futures are currently 1 to 2 1/4 cents higher at midday. The USDA reported a private sale of 140,000 MT of optional origin corn split evenly between 17/18 and 18/19 to Saudi Arabia through their daily reporting system. This week’s EIA report showed that 1.028 million barrels per day of ethanol was produced in the week that ended 5/18. That was a 30,000 bpd drop from the previous week. Stocks of ethanol were reported at 22.129 million barrels, up 624,000 barrels from the week prior. China customs confirmed April sorghum imports from all origins totaled 640,000 MT, with the YTD at 2.33 MMT. Corn imports were 380,000 MT for the month, bringing the 2018 total to 940,000 MT. Estimates ahead of Thursday’s Export Sales report are showing 0.7-1.1 MMT in old crop corn sales, with 100,000-250,000 MT in new crop sales.

Jul 18 Corn is at $4.07, up 2 1/4 cents,

Sep 18 Corn is at $4.15 1/4, up 1 3/4 cents,

Dec 18 Corn is at $4.24 3/4, up 1 1/2 cents

Mar 19 Corn is at $4.32 3/4, up 1 1/2 cents

Soybeans

Soybean futures are showing 5 to 6 cent gains on Wednesday. Soymeal is up $2.00/ton, with front month soy oil 11 points higher. Reports surfaced this morning about Chinese buyer Sinograin inquiring about US soybeans this week. The average trade guess for old crop soybean export sales is net reductions of 200,000 to sales of 400,000 MT. That comes after the USDA earlier reported private exporters canceling a large chunk of old crop sales in the daily reporting system. New crop sales are seen at 200,000-400,000 MT. Soy meal sales are expected at 100,000-500,000 MT, with soy oil at 8,000-30,000 MT. Ports in Argentina will be shut down on Thursday due to a strike by workers demanding better conditions and wages.

Jul 18 Soybeans are at $10.36 1/4, up 5 3/4 cents,

Aug 18 Soybeans are at $10.40 1/4, up 6 cents,

Sep 18 Soybeans are at $10.41, up 5 1/2 cents,

Nov 18 Soybeans are at $10.44 3/4, up 5 3/4 cents,

Jul 18 Soybean Meal is at $379.50, up $2.00

Jul 18 Soybean Oil is at $31.62, up $0.11

Wheat

Wheat futures are trading 6 1/4 to 10 cents higher at the moment, with MPLS the strongest. Rains pushing their way through the Northern Plains are slowing any planting that is left in the area. Analysts are looking for net reductions of 100,000 MT to sales of 100,000 MT for old crop wheat export sales during the week of 5/17. New crop sales are expected to be in the range of 100,000-400,000 MT. That would be an improvement over last week’s total sales of 193,738 MT. Chinese customs data shows imports of wheat in April at 370,000 MT, bringing the YTD total to 1.01 MMT from all origins.

Jul 18 CBOT Wheat is at $5.27 3/4, up 6 1/4 cents,

Jul 18 KCBT Wheat is at $5.48, up 7 1/2 cents,

Jul 18 MGEX Wheat is at $6.43, up 10 cents

Cattle

Live cattle futures are mostly 37.5 cents to $1.85 higher at midday. Feeder cattle futures are up 42.5 cents to $1.675. The CME feeder cattle index was down 24 cents on May 21 at $133.41. Wholesale boxed beef values were mixed on Wednesday morning. Choice boxes were up 97 cents at $230.32, with Select boxes 66 cents lower at $205.20. FI cattle slaughter was estimated at 239,000 head through Tuesday. That is 4,000 head larger than this time last year. Analysts are expecting to see April feedlot placements at an average of 1.68 million head, which is 9.1% lower than the same month last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. None of the 225 head offered on FCE’s online auction were sold on Wednesday. A few low ball bids of $108 and $175 have been reported in NE so far on Wednesday, with no sales yet to report.

Jun 18 Cattle are at $105.275, up $0.375,

Aug 18 Cattle are at $102.500, up $1.850,

Oct 18 Cattle are at $105.550, up $1.700,

May 18 Feeder Cattle are at $134.375, up $0.425

Aug 18 Feeder Cattle are at $142.400, up $1.675

Sep 18 Feeder Cattle are at $142.375, up $1.575

Lean Hogs

Lean hog futures are currently 30 to 90 cents higher on Wednesday. The CME Lean Hog Index was up 33 cents from the previous day to $68.69 on May 21. The USDA pork carcass cutout value was down $1.62 at $74.52 Wednesday morning. The loin led the way, down $4.71 with the ham $2.65 lower. The USDA estimated FI hog slaughter at 915,000 head through Tuesday. That is down 5,000 head from last week but 35,000 above the same week in 2017. Frozen pork stocks at the end of April totaled 641.407 million pounds per the USDA Cold Storage report. That was 5% above March and 8.65% larger than April 2017.

Jun 18 Hogs are at $74.025, up $0.900,

Jul 18 Hogs are at $75.975, up $0.850

Aug 18 Hogs are at $74.650, up $0.300

Cotton

Cotton futures are trading steady to 39 point lower at midday, with October higher in thin trade. The US dollar index is up 430 points at the moment, causing a little pressure for cotton. The weekly Export Sales report will be released at 7:30 am CDT on Thursday. China sold another 30,000 MT of cotton offered at an auction of state reserves on Wednesday. The Cotlook A index was up another 145 points from the previous day to 95.90 cents/lb on May 22. The current AWP of 74.09 cents/lb will be updated on Thursday.

Jul 18 Cotton is at 86.96, down 39 points,

Oct 18 Cotton is at 85.35, up 15 points

Dec 18 Cotton is at 83.84, unch,

Mar 19 Cotton is at 83.390, down 1 point


Market Commentary provided by:

Brugler Marketing & Management LLC
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