Ag Market Commentary

Corn futures are feeling pressure from the rest for the grain complex at midday, down 3 to 4 1/2 cents. Delayed Census trade data from December showed exports of 4.345 MMT (171.06 mbu) of corn in that month. That was down 14.88% from November but 22.1% larger than last year. Exports this MY (through Dec) are at 803 mbu up 64.5% from last year. Ethanol exports totaled 139.78 mgal, with DDGs at 890,491 MMT. Mexico is contemplating implementing new tariffs on US corn and poultry imports, because the US tariffs on Mexican steel are still in place. South Korean importers purchased a total of 137,000 MT of option origin corn in private tenders on Wednesday.

Mar 19 Corn is at $3.61 1/2, down 4 1/2 cents,

May 19 Corn is at $3.71 1/4, down 4 1/2 cents,

Jul 19 Corn is at $3.80 1/4, down 4 1/4 cents

Sep 19 Corn is at $3.86 1/4, down 4 cents

--provided by Brugler Marketing & Management

Soybean futures are down 10 to 11 1/2 cents in most contracts on Wednesday. Meal futures are $3.80/ton lower in the nearby contract, with soy oil 18 points in negative territory. Actual Census data released this morning indicated that 4.105 MMT (150.86 mbu) of US soybeans were shipped in December. That was a drop of 19% from Nov and still 34% below last year. Soy meal exports were at 1.082 MMT, a slight jump from Dec 2017. BR-163, the main highway toward the Amazon ports in Brazil is currently closed due to flooding with estimates of 3000-5000 trucks prevented from reaching export ports. Money managers in soybean futures and options were reported at a net short position of 35,982 contracts as of 2/26. Commitment of Traders data will finally be back up to current date in this Friday’s report.

Mar 19 Soybeans are at $8.90, down 11 1/4 cents,

May 19 Soybeans are at $9.02 1/4, down 11 1/2 cents,

Jul 19 Soybeans are at $9.16 1/4, down 11 1/2 cents,

Aug 19 Soybeans are at $9.22 3/4, down 11 cents,

Mar 19 Soybean Meal is at $301.80, down $3.80

Mar 19 Soybean Oil is at $29.55, down $0.18

--provided by Brugler Marketing & Management

Wheat futures are trading 3 to 12 cents lower in most contracts (excluding soon to expire March) at midday. Monthly trade data from Census (still delayed by the shutdown) indicated that 2.237 MMT (82.2 mbu) of all wheat was exported in December. That was the most since Sep 2017 and 12.84% above a year ago. The latest Commitment of Traders report indicated specs in Chicago wheat futures and options held a net short position of 58,567 contracts on 2/26. They held a record reported net short position in KC wheat futures and options on that date at -41,557 contracts. The average trade estimate for 18/19 wheat ending stocks prior to this week’s WASDE report is 1.020 bbu, which would be up 10 mbu from last month

Mar 19 CBOT Wheat is at $4.45, down 9 1/4 cents,

Mar 19 KCBT Wheat is at $4.36, down 8 cents,

Mar 19 MGEX Wheat is at $5.57, up 3 cents

--provided by Brugler Marketing & Management

Live cattle futures are mixed at midday, with front months steady to 15 cents higher and back months lower. Feeder cattle futures are down 10 to 90 cents on Wednesday. The CME feeder cattle index was up 4 cents on March 4 at $139.63. Wholesale boxed beef prices were higher on Wednesday morning with the Ch/Select spread at $6.35. Choice boxes were up 83 cents at $224.87 with Select 74 cents higher at $218.53. USDA estimated this week’s FI cattle slaughter at 236,000 head through Tuesday. That is up 4,000 head from the previous week and 2,000 head above the same week in 2018. Today’s FCE online auction saw all 300 head go unsold, with most lots offered at $128 and no bids. Live bids of $205 are being seen in NE at midday.

Apr 19 Cattle are at $128.975, up $0.150,

Jun 19 Cattle are at $119.825, down $0.025,

Aug 19 Cattle are at $115.800, up $0.050,

Mar 19 Feeder Cattle are at $140.750, down $0.125

Apr 19 Feeder Cattle are at $143.825, down $0.575

May 19 Feeder Cattle are at $145.575, down $0.750

--provided by Brugler Marketing & Management

Lean Hog futures are currently 15 to 42.5 cents in the red at midday. The CME Lean Hog Index was up a penny from the previous day @ $51.94 on March 4. Futures have been anticipating an upturn in cash for several days. The USDA pork carcass cutout value was down 6 cents on Wednesday morning at an average weighted price of $62.53. The national base hog carcass value was up 6 cents in Wednesday’s AM report at a weighted average of $44.62. USDA estimated FI hog slaughter through Tuesday at 943,000 head. That was well above the previous week and 41,000 head larger than last year.

Apr 19 Hogs are at $57.450, down $0.450,

May 19 Hogs are at $65.975, down $0.425

Jun 19 Hogs are at $75.875, down $0.425

--provided by Brugler Marketing & Management

Cotton futures are seeing losses of 7 to 26 points at midday, as nearby March and October are showing no volume. December cotton exports were tallied at 975,814 bales according to delayed Census data. That was up 43.22% from November, which is seasonal, but down 30% from a year ago. The CFTC Commitment of Traders report indicated that speculative money managers in cotton futures and options added 2,170 contracts to their net short position on 2/26. That position was 21,024 contracts on that date, the largest reported net short position for the funds since May 2007. The Cotlook A Index was down 75 points on March 5 to 81.15 cents/lb. The USDA Adjusted World Price (AWP) is 62.67 cents/ lb, effective through Thursday.

May 19 Cotton is at 74.35, down 26 points

Jul 19 Cotton is at 75.38, down 7 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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