Ag Market Commentary

Corn futures are trading 2 to 5 cents lower this morning. They ended the Tuesday session with most contracts 3 to 6 cents higher as rains continue to slow planting. The front month chart hit its highest price since May 2018 on Tuesday, with new crop Dec the highest since last August. The market is trying to talk producers out of taking the Prevent Plant insurance option by raising the ante, though some may not have a choice. New buying interest continued to flow into the market, with preliminary open interest up 18,371 contracts. A chunk of this is producer cash sales being hedged by the elevators. Due to weakness in the Real, prices have been carried by this rally to the highest level that Brazilian farmers have seen for corn since 2015.

--provided by Brugler Marketing & Management

Soybean futures are fractionally to a penny per bushel lower this morning. They closed Turnaround Tuesday with 9 to 9 3/4 cent losses, after being higher for most of the morning. July soy meal was down $2/ton, with soybean oil 36 points lower. A rumor that $2/bu trade aid for soybeans is being considered was negative for futures prices yesterday. USDA released a comment that the new program will be acreage neutral. After Monday’s close, the Crop Progress report indicated IA was 27% planted, with MN at 10% complete, SD only 4%, IL 9% and NE 40% in the ground.

--provided by Brugler Marketing & Management

Wheat futures are currently 4 to 8 cents lower after seeing mixed trade at Tuesday’s close. MPLS spring wheat is holding up the best of the three. KC was mostly a penny to 1 1/2 cents higher, with CBT up fractionally in the front months and lower in deferred contracts. MPLS was also mixed, with nearby contracts lower. The rumor mill also showed expected trade aid for wheat of 63 cents, which would discourage abandonment. USDA on Monday showed MN was 76% planted for spring wheat, only 4% behind normal, with ND at 66% and SD 70%. Japan’s weekly MOA tender is for 122,844 MT of US, and Canadian wheat, with 90,194 US specific. Taiwan purchased 111,050 MT of US wheat in their tender that closed on Tuesday.

--provided by Brugler Marketing & Management

Live cattle futures were down 20 to 50 cents on the day. Feeder cattle futures saw losses of $1.30 to $1.775 on Tuesday, with May up 22.5 cents ahead of Thursday’s Expiration. The CME feeder cattle index was up 43 cents to $132.25 on May 20. Wholesale boxed beef prices were lower on Tuesday afternoon. Choice boxes were down $1.87 at $219.58 with Select boxes $1.45 lower @ $206.58. Cool and wet weather ahead of the Memorial Day weekend may affect some wholesale demand. USDA estimated this week’s FI cattle slaughter at 240,000 head through Tuesday. That was down 2,000 head from last Monday and even with the same week last year. Cash trade ahead of the Holiday weekend has yet to get started, with Wednesday’s FCE showing 309 head will be offered for sale.

--provided by Brugler Marketing & Management

Lean Hog posted 12.5 cent to $1.975 losses in most contracts on Tuesday. The CME Lean Hog Index was UNCH from the previous day @ $84.59 on May 17. The USDA pork carcass cutout value was up 54 cents at $87.07 on Tuesday afternoon. The national average base hog was 11 cents lower on Tuesday, at an average weighted price of $80.91. This week’s estimated FI hog slaughter is 942,000 head through Tuesday. That was 21,000 head above the previous week and 23,000 above the same week last year.

--provided by Brugler Marketing & Management

Cotton futures are trading 65 to 111 points lower this morning. The ended Turnaround Tuesday with most contracts 38 to 87 points lower. The Crop Progress report indicated that 20% of the cotton acres in TX were seeded last week, now at 39%, with GA 61% planted. Those are both ahead of normal. The Cotlook A index for May 20 was down 75 points from the previous day to 76.60 cents/lb. The weekly Average World Price (AWP) is now 59.59 cents/lb, down 5.06 cents from last week. Cotton producers would also see more MFP money in the aid package being considered by the White House, but details on the level have not been made public.

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

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