AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are currently 2 to 3 cents higher after losing 5 to 7 1/4 cents in most contracts on Tuesday. Weaker ethanol prices and a lack of Export Sales news are weighing on the market. According to DTN’s national corn index, the average cash price for corn was $3.45 3/4 on Monday evening, which is 29 1/2 cents above last year. That would peg basis at -32 3/4 cents, 3/4 of a cent weaker than the same day in 2018. A Ukrainian consultant firm estimates that the country will export 25.75 MMT of corn in the July-June 2018/19 time period.

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures are trading 4 to 5 cents higher this morning. They saw most contracts fall 9 to 10 1/2 cents on Tuesday, despite a supportive NOPA report. Soymeal futures were down $2.50/ton, with soy oil 16 points lower. NOPA members a December record 171.759 mbu of soybeans, just shy of the second largest monthly total set back in March. That was 2.87% larger than November and 3.28% above December 2017, and outpaced expectations of 170.016 mbu. NOPA soybean oil stocks were 1.498 billion pounds, slightly above the month prior but down 1.33% from December 2017 and lighter than most trade guesses.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are mostly 2 to 4 cents higher across the three markets this morning, with SRW the strongest. They closed the Tuesday session with most contracts 1 to 4 cents lower. Japan’s Ministry of Ag is back with their weekly tender of 111,961 MT of wheat from Australia, Canada, and the US. The results are due on Thursday, with 52,971 MT sought from the US. Ukrainian exports of wheat are seen at 15.5 MMT according to an estimate from APK-Inform on Tuesday. USDA’s most recent estimate was 16.5 MMT. As of 1/11, Russian FOB prices were $12.80/ton above US SRW prices at the Gulf. That should help US wheat to look more attractive internationally, though a stronger dollar did not help on Tuesday.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures settled Tuesday with the front months 75 cents to $1.525 higher and deferred contracts lower. Feeder cattle futures were mostly higher on Tuesday, with nearby Jan a dime lower. The CME feeder cattle index was down 21 cents on January 14 at $144.44. Wholesale boxed beef prices were higher on Tuesday afternoon. Choice boxes were 19 cents higher at $212.21, with Select up 41 cents at $205.87. USDA estimated week to date FI cattle slaughter at 239,000 head through Tuesday. That is 2,000 head above last week and 6,000 head larger than the same week last year. The show list for today’s FCE online auction shows a modest 542 head.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures were mixed on Tuesday, with nearby contracts 12.5 to 30 cents higher and back months slightly lower. The CME Lean Hog Index was up 52 cents from the previous day @ $57.21 on January 11. The USDA pork carcass cutout value was down 86 cents on Tuesday afternoon at an average weighted price of $70.33. The belly was the only primal lower on the day, down $12.59. The national base cash hog carcass value was 29 cents lower in the PM report, with a weighted average of $51.46. FI hog slaughter WTD was estimated at 943,000 head through Tuesday, which is down 11,000 head from last week but 105,000 larger than the same week last year. China’s Ag Ministry reported on Tuesday that the country has culled 916,000 hogs due to the African Swine Fever (ASF), which is just a fraction of their more than 400 million hog herd. There are very few provinces remaining where the disease has not been confirmed.

Cotton Market News and Commentary

Cotton futures are trading 50 to 53 points higher after they posted 63 to 90 point losses in most contracts on Turnaround Tuesday. The Dollar was stronger on the day. The Cotton Association of India reduced expected exports to 2.4 million lakh bales. This only 47% of last year’s exports, leaving some room for the US. The Cotlook A Index was down 25 points on January 14 to 82.15 cents/lb. The only news on the China trade front was a quote from Senator Grassley indicating that none of the major issues had been solved in the Beijing session. Those were left for the next round or the one after that.

--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