AgriCharts Market Commentary

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Corn Closes Higher for the 8th Straight Session

Corn futures ended the Wednesday session firm to 2 3/4 cents higher, higher for the 8th day in a row for most front months. 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 $3.94 1/2, up 1/4 cent,

Sep 19 Corn closed at $4.03 3/4, up 1 cent,

Dec 19 Corn closed at $4.12 3/4, up 2 1/4 cents

Mar 20 Corn closed at $4.22 3/4, up 2 3/4 cents

--provided by Brugler Marketing & Management

Soybeans Post Gains on Wednesday

Soybean futures rebounded from Tuesday’s losses, with the nearby contracts closing 6 to 7 cents higher. July soy meal was up $3/ton, with soybean oil 17 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 $8.28 1/2, up 6 1/2 cents,

Aug 19 Soybeans closed at $8.35 1/2, up 6 3/4 cents,

Sep 19 Soybeans closed at $8.42 1/4, up 6 3/4 cents,

Jan 20 Soybeans closed at $8.67 1/4, up 7 cents,

Jul 19 Soybean Meal closed at $298.30, up $3.00,

Jul 19 Soybean Oil closed at $27.31, up $0.17

--provided by Brugler Marketing & Management

Wheat Mostly Lower on Profit Taking

Wheat futures closed the Wednesday session with most winter wheat contracts 2 to 6 cents lower. Traders were taking profits after gains over the past week. MPLS was steady to 3/4 cents higher in the front months, with deferred contracts lower. 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 $4.72 3/4, down 6 cents,

Jul 19 KCBT Wheat closed at $4.32 1/4, down 3 3/4 cents,

Jul 19 MGEX Wheat closed at $5.43 3/4, up 3/4 cent

--provided by Brugler Marketing & Management

Cattle Close Lower, USDA Shows 5-Year Low in April Beef Stocks

Live cattle futures saw 20 to 55 cent losses in most contracts on Wednesday. Feeder cattle futures were steady to 40 cents lower, with soon to expire May up $1.075. After Wednesday’s close, the Cold Storage report indicated 430.35 million lbs of beef were in coolers at the end of April, which is a 5-year low. That is down 4.78% from March and down 8.66% from a year ago. The CME feeder cattle index was down 9 cents to $132.16 on May 21. Wholesale boxed beef prices were mixed on Wednesday afternoon. Choice boxes were up 17 cents at $219.75 with Select boxes down 77 cents @ $205.81. USDA estimated this week’s FI cattle slaughter at 360,000 head through Wednesday. That was down 3,000 head from last Monday but up 1,000 from the same week last year. A few cash sales of $115 have been reported in the South so far on Wednesday, with $185-186 in the north. 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 $110.650, down $0.200,

Aug 19 Cattle closed at $107.950, down $0.325,

Oct 19 Cattle closed at $107.800, down $0.500,

May 19 Feeder Cattle closed at $135.450, up $1.075

Aug 19 Feeder Cattle closed at $142.600, down $0.400

Sep 19 Feeder Cattle closed at $143.875, down $0.300

--provided by Brugler Marketing & Management

Hogs Lower at Wednesday’s Close

Lean Hog settled Wednesday with 12.5 to 45 cents losses. 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 $2.24 at $84.83 on Wednesday afternoon. The rib primal was down $13.06, with the belly $4.92 lower. The national average base hog was down $1.59 on Wednesday, at an average weighted price of $79.27. This week’s estimated FI hog slaughter is 1.41 million head through Wednesday. That was 29,000 head above the previous week and 35,000 above the same week last year. NASS reported 621.87 million pounds of pork stocks on April 30 in their monthly Cold Storage report this afternoon. That was down 2.02% from a year ago and up 2.22% from March, which is seasonal. Belly stocks were down 5.33% from last year at 61.123 million pounds.

Jun 19 Hogs closed at $89.650, down $0.450,

Jul 19 Hogs closed at $91.050, down $0.325

Aug 19 Hogs closed at $92.175, down $0.300

--provided by Brugler Marketing & Management

Cotton Lower on Wednesday

Cotton futures were down 45 to 72 points 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 66.750, down 57 points,

Oct 19 Cotton closed at 66.750, down 45 points

Dec 19 Cotton closed at 66.180, down 72 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
E-mail: alanb@bruglermktg.com
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