Ag Market Commentary

Corn futures are mixed at midday, with nearby contracts lower and back months fractionally higher. Some traders are taking profits in the front months after 7 straight sessions higher. The weekly EIA report this morning showed ethanol plants producing 1.071 million barrels per day during the week of May 17. That was up another 20,000 bpd from last week and the largest weekly production this MY. Stocks of ethanol rose 1.154 million to 23.404 million barrels. Analysts are expecting Thursday’s Export Sales report to show 200,000-600,000 MT in old crop sales for the week of May 16, with new crop at 50,000-450,000 MT. 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.

Jul 19 Corn closed at $3.93 1/4, down 1 cent,

Sep 19 Corn closed at $4.02 1/4, down 1/2 cent,

Dec 19 Corn closed at $4.10 3/4, up 1/4 cent

Mar 20 Corn closed at $4.20 1/2, up 1/2 cent

--provided by Brugler Marketing & Management

Soybean futures are trading 5 to 6 1/4 cents higher in the front months. July soy meal is up $3.10/ton, with soybean oil 14 points in the green. USDA reported a private export sale of 131,000 MT of soybeans to unknown destinations, split between 18/19 (110,000 MT) and 19/20 (21,000 MT). USDA addressed a Bloomberg report of a $2/bu trade aid payment this year, stating they would have an announcement shortly and the program would be designed to avoid skewing planting decisions. Trade estimates for tomorrow’s Export Sales report are for 0-400,000 MT of old crop and 100,000-400,000 MT for new crop soybeans in the week of 5/16. Meal is seen at 75,000-400,000 MT, with soy oil at 4,000-25,000 MT.

Jul 19 Soybeans closed at $8.27 1/4, up 5 1/4 cents,

Aug 19 Soybeans closed at $8.34 1/2, up 5 3/4 cents,

Sep 19 Soybeans closed at $8.41, up 5 1/2 cents,

Jan 20 Soybeans closed at $8.66 1/2, up 6 1/4 cents,

Jul 19 Soybean Meal closed at $298.40, up $3.10,

Jul 19 Soybean Oil closed at $27.28, up $0.14

--provided by Brugler Marketing & Management

Wheat futures are showing mixed trade in most contracts on Wednesday. KC is steady to a penny higher, with CBT down 1 to 3 1/4 cents. MPLS is 1 to 5 cents lower at midday. Ahead of USDA’s Export Sales update on Thursday, traders are expecting old crop wheat activity will be anywhere from net reductions of 100,000 MT to sales of 200,000 MT. That was for the week of May 16, with new crop sales seen at 100,000-500,000 MT.

Jul 19 CBOT Wheat closed at $4.75 1/2, down 3 1/4 cents,

Jul 19 KCBT Wheat closed at $4.36, unch,

Jul 19 MGEX Wheat closed at $5.42, down 1 cent

--provided by Brugler Marketing & Management

Live cattle futures are mostly 25 to 80 cents lower on Wednesday. Feeder cattle futures are trading 80 cents to $1.10 lower at midday, with soon to expire May up 35 cents. The CME feeder cattle index was up 43 cents to $132.25 on May 20. Wholesale boxed beef prices were steady to higher on Wednesday morning. Choice boxes were up $1.01 at $220.59 with Select boxes UNCH @ $206.58. 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. A few cash sales of $115 have been reported in the South so far on Wednesday. FCE saw no sales on the 308 head offered, with most asks at $116. Friday’s Cattle on Feed report is expected to show May 1 on feed numbers up about 2.9% (average of traders surveyed) from a year ago at 11.893 million head.

Jun 19 Cattle closed at $110.575, down $0.275,

Aug 19 Cattle closed at $107.825, down $0.450,

Oct 19 Cattle closed at $107.675, down $0.625,

May 19 Feeder Cattle closed at $134.725, up $0.350

Aug 19 Feeder Cattle closed at $142.200, down $0.800

Sep 19 Feeder Cattle closed at $143.325, down $0.850

--provided by Brugler Marketing & Management

Lean Hog are steady to 35 cents lower in most contracts on Wednesday. The CME Lean Hog Index was down 22 cents from the previous day @ $84.37 on May 20. The USDA pork carcass cutout value was down 64 cents at $86.43 on Wednesday morning. The national average base hog was down $1.49 on Wednesday, at an average weighted price of $79.34. 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.

Jun 19 Hogs closed at $89.800, down $0.300,

Jul 19 Hogs closed at $91.300, down $0.075

Aug 19 Hogs closed at $92.225, down $0.250

--provided by Brugler Marketing & Management

Cotton futures are trading 18 to 90 points lower in most contracts on Wednesday. USDA will release their weekly update to the Export Sales report on Thursday, with most eyes on Chinese actions in the reporting week that ended on May 16. The Cotlook A index for May 21 was up 220 points from the previous day to 78.8 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.

Jul 19 Cotton closed at 66.520, down 80 points,

Oct 19 Cotton closed at 67.020, down 18 points

Dec 19 Cotton closed at 66.030, down 87 points

--provided by Brugler Marketing & Management

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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