AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are trading fractionally higher this morning. They ended the Wednesday session with most contracts 2 to 2 3/4 cents higher. Weekly EIA ethanol production averaged 1.051 million barrels per day. That was up 51,000 bpd from the week prior and was the largest weekly production (and corn use) since the last week of November. Corn use for ethanol in 2018/19 likely topped the 2 billion bushel mark last week. Stocks were also up 97,000 barrels at 23.351 million barrels. Several South Korean importers purchased a total of 260,000 MT of optional origin corn on Wednesday. Chinese officials noted stronger than expected government auction sales in 2018 and suggested that the oldest corn in their inventory would all be gone by the end of 2019.

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures are currently 3 cents higher after seeing fractional to 1 1/4 cent gains in most contracts on Wednesday. Soymeal futures were up 80 cents/ton, with soy oil 1 point lower. Weakness in the meal has put downward pressure on product value and forced soybeans lower to keep crush spreads attractive. Celeres is the latest Brazilian firm to cut their country’s soybean production estimate, down 4.9 MMT to 117.2 MMT. Imea estimates that Mato Grosso soy harvest is 5.6% completed. Parana is about 10% done vs. 5% last week and none in 2018. USDA is/was using 2017 as an analog year but not 2018. USDA Sec. Perdue announced several FSA offices will be open Thursday, Friday, and next Tuesday for assistance with “loans and other limited services.”

Wheat Market News and Commentary

Wheat futures are mostly 1 to 3 cents higher this morning. They settled Wednesday with KC contracts steady to fractionally mixed. CBT SRW was up 1 to 2 1/2 cents, with MPLS 2 1/2 to 4 1/2 cents higher. Frigid temps are expected across much of the WCB and Plains this weekend. Northern KS and eastern NE did receive snow cover from last weekend’s storm. With the government still in partial shutdown mode, Export Sales will not be released on Thursday morning. A South Korean feed importer purchased 65,000 MT of optional origin wheat on Wednesday. A Chinese auction of state reserves saw 99,961 MT, or 3.3% of the offered amount, sold on Wednesday.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures ended the Wednesday session with most contracts 25 to 87.5 cents higher. Feeder cattle futures were mixed, with nearby contracts 5 to 97.5 cents lower and back months higher. The CME feeder cattle index was down 25 cents on January 15 at $144.19. Wholesale boxed beef prices were mixed on Wednesday afternoon. Choice boxes were 31 cents lower at $211.90, with Select up $1.07 at $206.94. USDA estimated week to date FI cattle slaughter at 359,000 head through Wednesday. That is 2,000 head above last week and 11,000 head larger than the same week last year. There were no sales on Wednesday’s FCE, with most asks around $127.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures posted 27.5 cent to $2.10 losses in most contracts on Wednesday. The CME Lean Hog Index was up 44 cents from the previous day @ $57.65 on January 14. The USDA pork carcass cutout value was down 69 cents on Wednesday at an average weighted price of $69.64. The national base cash hog carcass value was 26 cents higher in the PM report, with a weighted average of $51.70. FI hog slaughter WTD was estimated at 1.423 million head through Wednesday, which is 140,000 larger than the same week last year. China’s Ag Ministry reported that their hog herd was down 4.8% in Dec vs. last year, with sow numbers a sharp 8.3% lower.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are trading 89 to 107 points higher this morning adding to gains of 82 to 91 points in most contracts on Wednesday. The Cotlook A Index was up 30 points on January 15 to 82.45 cents/lb. A Cotton Grower survey showed that 13.6 million acres of cotton are intended for 2019, down from 14.05 million last year. Secretary Perdue announced that ~2,500 FSA employees will return to work today, Friday, and next Tuesday (Monday is the MLK holiday) to help with loans in process and other limited items. Only selected office locations will be open on those days so check before trucking over there.

--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