Ag Market Commentary

Corn futures saw 1 to 2 cent gains in most contracts on Friday, with May up 1.34% this week. A private export sale of 300,000 MT of corn for 2018/19 delivery to China was announced by the USDA this morning. Friday afternoon’s Commitment of Traders report indicated that spec traders in corn futures and options extended their record reported net short position for the week that ended on 3/19 to 261,326 contracts. An updated Farm Futures survey released this morning indicated 90.9 million planted corn acres for 2019. A Reuters report estimates ~13% of the US ethanol capacity is offline at the moment due to the recent flooding and both bridge and rail damage. Total export commitments for corn are 7.4% below this time last year. They are 69% of the USDA projected full year amount vs. the average of 78% for this date.

May 19 Corn closed at $3.78 1/4, up 2 cents,

Jul 19 Corn closed at $3.87 1/2, up 2 cents,

Sep 19 Corn closed at $3.93 1/4, up 1 1/2 cents

Dec 19 Corn closed at $4.00, up 1 1/4 cents

--provided by Brugler Marketing & Management

Soybean futures ended the Friday session with 6 to 7 1/4 cent losses in most contracts, pressured by product values. May was down 0.6% on the week. Meal futures were down 30 cents/ton, with soy oil 44 points lower. Nearby soy oil lost 2.62% this week. Money managers in soybean futures and options backed off their net short position by 26,205 contracts as of Tuesday to a net position of -63,992 contracts. US soybean acres were estimated at 85.9 million acres according to a Farm Futures survey of producers. Export commitments for soybeans are down 17% from the same time last year. Compared to USDA’s projection they are 81% complete vs. the 92% average for this time of year.

May 19 Soybeans closed at $9.03 3/4, down 6 3/4 cents,

Jul 19 Soybeans closed at $9.17 1/4, down 7 cents,

Aug 19 Soybeans closed at $9.23 1/4, down 7 cents,

Nov 19 Soybeans closed at $9.37 1/2, down 7 1/4 cents,

May 19 Soybean Meal closed at $315.00, down $0.30,

May 19 Soybean Oil closed at $28.66, down $0.44

--provided by Brugler Marketing & Management

Wheat futures settled with most winter wheat contracts steady to 2 cents lower, as MPLS was mixed. Strength in the dollar pressured the market. Front month CBT and KC saw slight gains this week, with MPLS up 3.15%. CFTC data showed that spec funds in KC wheat futures and options added to their record reported net short position as of Tuesday (to 51,380 contracts). Their net short in Chicago was 73,506 contracts on that date. Total old crop export commitments are now 89% of USDA’s export projection, lagging the normal pace of 99%. Taiwan purchased 110,000 MT of US wheat in their tender on Friday. South Korean importers purchased a total of 125,000 MT of optional origin wheat in tenders on Friday.

May 19 CBOT Wheat closed at $4.66, down 1/2 cent,

May 19 KCBT Wheat closed at $4.45, down 2 cents,

May 19 MGEX Wheat closed at $5.72 1/4, up 1 cent

--provided by Brugler Marketing & Management

Live cattle futures closed with 5 to 40 cent gains in most contracts on Friday, as the nearby contracts were 17.5 to 40 cents lower. Feeder cattle futures were also mixed, with only April lower and most other contracts steady to $1.50 higher. The CME feeder cattle index was up $1.90 on March 20 at $140.02. Wholesale boxed beef prices were mixed on Friday afternoon. Choice boxes were down 22 cents at $229.09, as Select was 27 cents higher @ $218.64. USDA estimated this week’s FI cattle slaughter at 631,000 head through Saturday. The Cattle on Feed report showed February placements at 1.857 million head, up 2.2% yr/yr, with marketing 0.48% higher at 1.683 million head. March 1 on feed was at 11.796 million head, a jump of 0.69% from the same month last year. The Cold Storage report also released this afternoon indicated 479.28 million pounds of beef as of Feb 28, up 4.34 % from a year ago but down 6.06% from last month. Cash trade this week was around $128 in the south, with sales of $129 and up to $129.50 reported in the North. Specs in live cattle futures and options were reported at a near record CFTC net long position for cattle on Tuesday at 145,159 contracts.

Apr 19 Cattle closed at $129.725, down $0.175,

Jun 19 Cattle closed at $123.500, down $0.400,

Aug 19 Cattle closed at $120.025, up $0.050,

Mar 19 Feeder Cattle closed at $143.000, up $0.225

Apr 19 Feeder Cattle closed at $148.800, down $0.125

May 19 Feeder Cattle closed at $154.050, up $0.050

--provided by Brugler Marketing & Management

Lean Hog futures were anywhere from $2.10 lower to $1.075 higher on Friday, as April was up 13.84% following two limit up days this week. The 2020 contracts are anticipating over expansion due to these prices. The CME Lean Hog Index was up $1.53 from the previous day @ $60.75 on March 20. The USDA pork carcass cutout value was up $1.54 on Friday afternoon at an average weighted price of $77.79. The national base hog carcass value was up $2.29 in the PM report at an average weighted price of $66.44. USDA estimated WTD FI hog slaughter at 2.508 million head through Saturday. Total pork stocks in cold storage at the end of Feb were 615.979 million pounds, up 1.02% vs. a year ago and 9.46% larger than January. Belly stocks were seen at 53.796 million pounds, just 0.11% larger than January. Money managers in lean hog futures and options flipped their net position by 11,723 contracts for the week that ended on Tuesday to a CFTC net long position of 8,090 contracts.

Apr 19 Hogs closed at $78.325, unch,

May 19 Hogs closed at $87.025, up $0.425

Jun 19 Hogs closed at $95.675, up $0.925

--provided by Brugler Marketing & Management

Cotton futures saw losses of 6 to 60 points in the front months on Friday, pressured by a stronger dollar and lower crude oil. May was up 1.43% this week. The Cotlook A Index was UNCH on March 21 to 84.65 cents/lb. The USDA Adjusted World Price (AWP) was updated to 65.83 cents/ lb on Thursday, up 173 points from the week prior. The weekly Commitment of Traders report showed spec funds trimming their net short position as of March 19 by 9,189 contracts to 10,818 contracts in cotton futures and options. US export commitments for upland cotton are now 13.1% below the same time last year. In comparison to the USDA projected total, they are 89% complete, with the average pace at 90% for this date.

May 19 Cotton closed at 76.580, down 60 points,

Jul 19 Cotton closed at 77.570, down 46 points

Oct 19 Cotton closed at 75.860, down 6 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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