AgriCharts Market Commentary

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Corn Closes Lower on Wednesday

Corn futures closed the Wednesday session with most contracts steady to 4 1/4 cents lower. Traders are positioning themselves ahead of Friday’s USDA reports. Weekly EIA data showed 1.072 million barrels per day of ethanol were produced in the week that ended on June 21. That was down just 9,000 bpd from the previous week and even with the same week last year. Stocks of ethanol were down 46,000 barrels at 21.567 million barrels. The trade range of estimates for old crop corn sales in the week of June 20 is 150,000-450,000 MT, with new crop at 100,000-300,000 MT. The average trade estimate for corn acreage ahead of Friday’s Grain Stocks is 5.332 bbu, which would be 27 mbu larger than the same time last year.

Jul 19 Corn closed at $4.43 1/4, down 4 1/4 cents,

Sep 19 Corn closed at $4.49 1/2, down 3 1/2 cents,

Dec 19 Corn closed at $4.54 1/2, down 3 cents

Mar 20 Corn closed at $4.59 1/2, down 2 1/2 cents

--provided by Brugler Marketing & Management

Soybeans Lower with Drier Forecasts This Week

Soybean futures ended the day with 7 to 9 1/4 cent losses. Forecasts are calling for drier weather across the Midwest this week. Soybean meal was down $2.30/ton, with soy oil 19 points lower. USDA reported a private export sale of 145,000 MT of soybeans to Unknown for 18/19 delivery this morning. Ahead of Thursday’s Export Sales report, analysts expect soybean sales to be 200,000-500,000 MT for old crop and 100,000-300,000 MT for new crop. Meal sales are estimated at 75,000-350,000 MT, with 5,000-25,000 MT for soy oil. Per wire surveys, US soybean stocks on June 1 are seen at 1.861 bbu, a 642 mbu jump from last year if realized. Wednesday’s Stats Canada report showed Canola acreage intentions at 21 million acres, down 8.2% from last year due to trade friction with China and the world surplus in soybeans.

Jul 19 Soybeans closed at $8.94 1/4, down 9 1/4 cents,

Aug 19 Soybeans closed at $8.99 3/4, down 9 cents,

Sep 19 Soybeans closed at $9.06, down 8 1/2 cents,

Jan 20 Soybeans closed at $9.30, down 8 1/4 cents,

Jul 19 Soybean Meal closed at $313.40, down $2.30,

Jul 19 Soybean Oil closed at $27.81, down $0.19

--provided by Brugler Marketing & Management

Wheats Post Gains on Wednesday

Wheat futures saw 1 3/4 to 8 cent gains in most contracts on Wednesday, with CBT the strongest. Thursday’s Export Sales report is expected to show 200,000-500,000 MT in wheat export sales for the new 19/20 MY. Published trade estimates have 18/19 US wheat ending stocks estimates hovering around 1.100 billion bushels. Last year was at 1.099 bbu. Wednesday’s Stats Canada report indicated that total Canadian wheat acreage intentions are 24.6 million acres, down slightly from a year ago. Durum is seen down 1.3 million at 4.9 million acres. Agritel estimates Russia’s wheat crop at 81.7 MMT for 2019, a 1.9 MMT jump from their previous projection. Philippines importers are tendering for 200,000 MT of wheat.

Jul 19 CBOT Wheat closed at $5.43 3/4, up 8 cents,

Jul 19 KCBT Wheat closed at $4.69, up 3 3/4 cents,

Jul 19 MGEX Wheat closed at $5.50 1/4, up 1 3/4 cents

--provided by Brugler Marketing & Management

Cattle Post Sharp Gains on Wednesday, with Feeders Limit Up

Live cattle futures settled with $1.25 to $2.125 gains on Wednesday. Feeder cattle futures saw limit gains in August, with most other contracts more than $4 higher. The CME feeder cattle index was up 8 cents @ $131.51 on June 25. Wholesale boxed beef prices were mixed on Wednesday afternoon, with the Ch/Se spread widening to $21.14. Choice boxes were up 6 at $219.70 with Select boxes 39 cents lower @ $198.56. USDA estimated week to date FI cattle slaughter at 363,000 through Wednesday. That was 2,000 head larger than last week and 13,000 head more than the same week a year ago. There are a few $107 cash cattle bids out there, with a few asking prices at $110-111 and $182 in the meat. USDA reported a few $180 dressed sales in NE. Both of the lots listed on Wednesday’s FCE auction went unsold.

Jun 19 Cattle closed at $109.000, up $1.250,

Aug 19 Cattle closed at $105.375, up $2.125,

Oct 19 Cattle closed at $106.550, up $1.700,

Aug 19 Feeder Cattle closed at $135.825, up $4.500

Sep 19 Feeder Cattle closed at $136.350, up $4.475

Oct 19 Feeder Cattle closed at $136.725, up $4.425

--provided by Brugler Marketing & Management

Hogs Mixed on Wednesday

Lean Hog futures were down 10 to 85 cents in the front months on Wednesday, with deferred contracts higher. The CME Lean Hog Index was down 34 cents from the previous day @ $78.31 on June 24. The USDA pork carcass cutout value was down $1.61 @ $73.97. The rib led the way to the downside, $18.35 lower. The national average base hog price was down $1.39 on Wednesday afternoon at $70.68 per hundred pounds. Estimated weekly FI hog slaughter through Wednesday was 1.401 million head. That was down 22,000 from the previous week after a slow Monday, but 76,000 more than the same week in 2018. Analysts expect NASS to show the March-May pig crop up 2.6% in Thursday afternoon’s Hogs & Pigs report.

Jul 19 Hogs closed at $73.550, down $0.850,

Aug 19 Hogs closed at $75.475, down $0.700

Oct 19 Hogs closed at $69.500, down $0.400

--provided by Brugler Marketing & Management

Cotton Closes Higher on Wednesday

Cotton futures posted 58 to 129 point gains in most contracts on Wednesday. USDA will update the export situation in Thursday morning’s Export Sales report. Analysts surveyed by Bloomberg show 2019 cotton acreage ideas at an average of 13.74 million acres (Reuters – 13.819 million acres), just slightly below the March Intentions report. The Cotlook A index for June 25 was UNCH points from the previous day to 76.40 cents/lb. The weekly Average World Price (AWP) from USDA is 59.14 cents/lb through Thursday.

Jul 19 Cotton closed at 63.490, up 129 points,

Oct 19 Cotton closed at 66.320, up 67 points

Dec 19 Cotton closed at 66.390, up 67 points

--provided by Brugler Marketing & Management


Market Commentary provided by:

Brugler Marketing & Management LLC
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