Ag Market Commentary

Corn futures are down 4 to 6 1/4 cents in most contracts on Thursday. This morning’s Export Sales report indicated that 969,742 MT of old crop corn was sold in the week of 2/28, with 280,900 MT for new crop. Total sales were on the high side of estimates but down 35.13% from this week in 2018. Mexico was the lead buyer of 375,300 MT (and all of new crop), with Japan buying 306,700 MT. China did purchase a cargo of US sorghum in that week, the first since last August. Trade estimates ahead of tomorrow’s monthly USDA update show Brazil corn production slightly higher at 94.66 MMT, with Argentina at 45.92 MMT.

Mar 19 Corn is at $3.57, down 5 1/2 cents,

May 19 Corn is at $3.66 1/4, down 6 1/4 cents,

Jul 19 Corn is at $3.75 1/4, down 5 3/4 cents

Sep 19 Corn is at $3.81 3/4, down 5 3/4 cents

--provided by Brugler Marketing & Management

Soybean futures are trading a penny firmer to 4 cents higher at midday. Meal futures are up 90 cents/ton in the nearby contract, with soy oil 15 points lower. Rumors floating around of new Chinese buying are offsetting low sales reported this morning. The weekly Export Sales report tallied old crop soybean bookings nearly half of the low end of estimates at 311,442 MT, with 72,000 MT for new crop. Of that total 147,604 MT was sold to China, with 174,600 MT reported in net reductions for unknown. Soy meals sales totaled 230,523 MT for 18/19, with soy oil at 8,136 MT. Analysts expect USDA to trim Brazil’s production total to 115.7 MMT, with Argentina seen slightly higher at 55.23 MMT.

Mar 19 Soybeans are at $8.93 3/4, up 4 cents,

May 19 Soybeans are at $9.03, up 1 cent,

Jul 19 Soybeans are at $9.17, up 1 1/4 cents,

Aug 19 Soybeans are at $9.23, up 1 cent,

Mar 19 Soybean Meal is at $302.70, up $0.90

Mar 19 Soybean Oil is at $29.36, down $0.15

--provided by Brugler Marketing & Management

Wheat futures are steady to 2 cents lower in MPLS, with winter wheat contracts 4 to 8 cents lower at midday. A stronger US dollar is not helping to keep US exports competitive on the international market, after US and French FOB prices narrowed on Wednesday. French milling wheat on the Matif was lower again on Thursday. All wheat export sales in the week of Feb 28 totaled 621,696 MT for 18/19 with 204,987 MT for new crop bookings. The old crop total was 58.81% larger than the same week last year and better than the trade had expected. Mexico bought 156,600 MT, with South Korea at 127,500 MT.

Mar 19 CBOT Wheat is at $4.36 1/4, down 4 1/4 cents,

Mar 19 KCBT Wheat is at $4.31, down 1/4 cent,

Mar 19 MGEX Wheat is at $5.57, unch ,

--provided by Brugler Marketing & Management

Live cattle futures are trading 20 to 75 cents higher in most contracts on Thursday. Feeder cattle futures are up $1.15 to $1.90 at midday, with the help of weakness in corn. The CME feeder cattle index was down 4 cents on March 5 at $139.59. Wholesale boxed beef prices were higher on Thursday morning with the Ch/Select spread at $7.03. Choice boxes were up 68 cents at $225.61 with Select 21 cents higher at $218.58. USDA has week to date FI cattle slaughter at 350,000 head. That is down 1,000 head from the previous week but 1,000 head above the same week in 2018. Cash trade is being reported in the South on Thursday at $128, with bids in the north of $128 and $205. Beef export sales in the week of 2/28 were seen at 24,710 MT. December beef exports converted by USDA this morning were another monthly record at 261.981 million pounds. That was down 1.7% from November but slightly larger than last year. Total exports in 2018 were a record and 10.41% above 2017 (which was also a record).

Apr 19 Cattle are at $129.125, up $0.225,

Jun 19 Cattle are at $120.325, up $0.700,

Aug 19 Cattle are at $116.350, up $0.750,

Mar 19 Feeder Cattle are at $142.325, up $1.675

Apr 19 Feeder Cattle are at $145.400, up $1.750

May 19 Feeder Cattle are at $147.325, up $1.900

--provided by Brugler Marketing & Management

Lean Hog futures are mixed on Thursday, with front months 32.5 to 65 cents higher and back months lower. The CME Lean Hog Index was down 9 cents from the previous day @ $51.85 on March 5. The USDA pork carcass cutout value was up $1.76 on Thursday morning at an average weighted price of $64.82. The national base hog carcass value was not reported due to confidentiality this morning, with the 5-day rolling average at $44.78. USDA estimated FI hog slaughter through Wednesday at 1.42 million head. That was well above the previous week and 67,000 head larger than last year. Export sales of pork in the final week of February were 24,436 MT. Pork export shipments in December were reported at 526.062 million pounds. That was up 2.3% from last year and 2.5% larger than November. Exports to China were the largest for Dec since 2013 at 30.24 million pounds.

Apr 19 Hogs are at $57.725, up $0.650,

May 19 Hogs are at $66.325, up $0.325

Jun 19 Hogs are at $75.125, down $0.625

--provided by Brugler Marketing & Management

Cotton futures are currently down 30 to 95 points at midday. The March contract expires today. The US dollar index is stronger for the 6th day in a row, up 541 points. Export sales of upland cotton in the week of Feb 28 were reported at 114,028 RB for old crop, with new crop at 25,692 RB. That was well below a year ago as total sales were 43.16% larger wk/wk. A net reduction of 1,227 RB was reported to China for 18/19, with 17,676 RB in sales for 19/20. The Cotlook A Index was up 150 points on March 6 to 82.65 cents/lb. The USDA Adjusted World Price (AWP) is 62.67 cents/ lb, effective through today.

Mar 19 Cotton is at 72.13, down 92 points,

May 19 Cotton is at 73.26, down 95 points

Jul 19 Cotton is at 74.38, down 84 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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