Ag Market Commentary

Corn futures saw fractional gains in most contracts on Wednesday. The weekly EIA report indicated ethanol production in the week that ended on 3/15 slipped 1,000 barrels per day to 1.004 million bpd. Stocks at the end of that week rose 681,000 barrels wk/wk to a record 24.412 million barrels. The Midwest neared their record totals, up 383,000 barrels as rail movement was hindered due to flooding. Export sales for the week of 3/14 are expected to total 0.6-1 MMT for old crop corn in tomorrow morning’s USDA report, with new crop at 0-300,000 MT.

May 19 Corn closed at $3.71 1/2, up 1/4 cent,

Jul 19 Corn closed at $3.81, up 1/4 cent,

Sep 19 Corn closed at $3.88, up 1/2 cent

Dec 19 Corn closed at $3.95 1/2, up 1/4 cent

--provided by Brugler Marketing & Management

Soybean futures ended the Wednesday session with most contracts 2 to 3 cents higher. Meal futures were up 80 cents/ton, with soy oil 3 points higher. Strong Board profitability for hogs is supporting meal. Analysts are expecting 18/19 soybean export bookings of 0.6-1.6 MMT for the week of 3/14 in Thursday’s USDA Export Sales report. New crop sales are estimated at 0-150,000 MT. Soybean meal sales are seen at 150,000-400,000 MT, with soy oil at 8,000-30,000 MT. Brazil’s Ag Minister says she expects to head to China later this Spring to strengthen soybean trade.

May 19 Soybeans closed at $9.06, up 2 cents,

Jul 19 Soybeans closed at $9.19 1/2, up 2 cents,

Aug 19 Soybeans closed at $9.26, up 2 1/4 cents,

Nov 19 Soybeans closed at $9.40 1/4, up 2 cents,

May 19 Soybean Meal closed at $311.60, up $0.80,

May 19 Soybean Oil closed at $29.27, up $0.03

--provided by Brugler Marketing & Management

Wheat futures posted 4 to 8 1/4 cent gains in most contracts on Wednesday. There is still significant snow cover in the Dakotas and Minnesota. As it melts, water levels are rising in that area. Where it isn’t melting, the ground is still frozen. All wheat exports sales for the week of 3/14 are estimated in the range of 200,000-450,000 MT for old crop and 100,000-225,000 MT for new crop. Taiwan is seeking 110,000 MT of US wheat in a tender that expires on Friday. Brazil’s Ag Minister stated that the quota of 750,000 MT of tariff free wheat announced yesterday is for global imports, not just US origin according to wire reports. FCStone estimates Brazil imports in 18/19 down 1.3 MMT to 5.7 MMT on larger domestic production. Argentine supplies are also available.

May 19 CBOT Wheat closed at $4.64 3/4, up 8 1/4 cents,

May 19 KCBT Wheat closed at $4.44, up 8 1/4 cents,

May 19 MGEX Wheat closed at $5.71 1/2, up 6 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures closed the day with most contracts 45 to 90 cents higher. Feeder cattle futures were steady to $1.95 in the green. The CME feeder cattle index was down 26 cents on March 19 at $137.41. Wholesale boxed beef prices were lower in the Wednesday afternoon report, with the Choice/Sel spread at $10.04/cwt. Choice boxes were down 66 cents at $228.67, as Select was 83 cents lower @ $218.63. USDA estimated this week’s FI cattle slaughter at 355,000 head through Wednesday. That was up 7,000 head from the previous week and even with this time last year. The 596 head offered on Wednesday’s FCE auction went unsold, with the cattle offered at $129-130.

Apr 19 Cattle closed at $129.575, up $0.450,

Jun 19 Cattle closed at $123.375, up $0.650,

Aug 19 Cattle closed at $119.325, up $0.600,

Mar 19 Feeder Cattle closed at $142.250, unch,

Apr 19 Feeder Cattle closed at $148.325, up $0.525

May 19 Feeder Cattle closed at $152.125, up $1.600

--provided by Brugler Marketing & Management

Lean Hog futures posted limit gains in most front months on Wednesday, with Thursday having expanded limits of $4.50. The CME Lean Hog Index was up $1.00 from the previous day @ $57.54 on March 18. Futures have been anticipating the rally in cash for several weeks now. The USDA pork carcass cutout value was down 9 cents on Wednesday afternoon at an average weighted price of $74.05. The national base hog carcass value was up $2.79 in the PM report at an average weighted price of $60.38. USDA estimated WTD FI hog slaughter at 1.409 million head, up 5,000 from the previous week and 25,000 above last year.

Apr 19 Hogs closed at $73.825, up $3.000,

May 19 Hogs closed at $82.150, up $3.000

Jun 19 Hogs closed at $90.250, up $3.000

--provided by Brugler Marketing & Management

Cotton futures settled with the front months 15-16 points lower and deferred contracts lightly higher. A weaker US dollar supported the market. The Cotlook A Index was down 20 points on March 19 to 84.15 cents/lb. The USDA Adjusted World Price (AWP) was updated to 64.10 cents/ lb on Thursday, up 68 points from the week prior. The Federal Reserve left interest rates UNCH on Wednesday, indicating no rate hikes expected for the rest of this year. USDA will release their Export Sales report for the week of March 14 on Thursday morning.

May 19 Cotton closed at 75.500, down 15 points,

Jul 19 Cotton closed at 76.560, down 16 points

Oct 19 Cotton closed at 75.470, up 5 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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