AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are currently 1 cent per bushel higher after posting 4 to 6 cent gains in the nearby contracts on Thursday. The buying was short covering, with preliminary open interest dropping 6,689 contracts. DTN’s national corn index was at $3.42 on Wednesday evening, 22 1/4 cents above last year. That put national basis at -32 cents, just 1/4 cent weaker than the same time in 2018. Export demand has been better this MY, but weaker ethanol margins have a negative impact on local basis. South Korean feed importers purchased another 129,000 MT of optional origin corn in separate private purchases on Thursday. The BAGE indicated that 86.1% of Argentina’s corn crop is planted, behind the 91.2% average. Conditions of the emerged crop are 55.3% gd/ex, which is well above the same time last year.

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures are trading 4 to 5 cents higher at the moment. They closed 11 to 13 1/4 cents higher on Thursday. There was some modest net new buying focused in the May contract on Thursday, with short covering in March and July. Soymeal futures were up $2.10/ton, with soy oil 54 points higher. Support came from rumors that the US was considering lifting some or all of the tariffs on Chinese imports. At this point those are just rumors and were denied by Treasury. On Wednesday afternoon, the national soybean cash index was at $8.03 per DTN data, down 96 1/2 cents yr/yr. That put the national average basis at -91 1/2 March, 23 cents weaker than a year ago. The Buenos Aires Grain Exchange estimated that 38.9% of the Argentine soybean crop is blooming (avg 45.7%) as they also cut planted acreage by 494,000 acres to 43.74 million acres due to flooding. They also rated the crop at 51.2% gd/ex, compared to last year’s drought influenced conditions of 35% for this week.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are mostly 2 to 3 cents higher this morning in the winter wheat contracts. MPLS spring wheat is hovering around UNCH. They posted 5 to 8 1/2 cent gains in most contracts on Thursday, following the rest of the grain complex. Japan purchased 111,961 MT of wheat in their weekly MOA tender from Australia, Canada, and the US, with 52,971 MT US specific. Strategie Grains trimmed their 19/20 EU soft wheat production estimate by 0.6 to 146.4 MMT. That would be 15.18% larger than the 18/19 crop of 127.1 MMT. There is also a little talk about potential winter kill on winter wheat, but percentage of the crop with snow cover and the actual low temps observed on bare fields will be the determinants. It also tends to be difficult to prove until the spring green up.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures closed the Thursday session with most contracts 60 to 85 cents lower. Feeder cattle futures were down 72.5 cents to $2.35 in most contracts. The CME feeder cattle index was down $1.10 on January 16 at $143.09. Wholesale boxed beef prices were higher on Thursday afternoon. Choice boxes were up 57 cents at $212.50, with Select up 70 cents at $207.64. USDA estimated week to date FI cattle slaughter at 480,000 head through Thursday. That is 3,000 head above last week and 13,000 head larger than the same week last year. Cash trade so far this week has been limited with bids of $197 in NE vs. asks of $202-203.

Lean Hogs Market News and Commentary

Lean Hog futures were 20 to 45 cents lower in most contracts on Thursday, with nearby Feb up 80 cents. The CME Lean Hog Index was up 37 cents from the previous day @ $58.02 on January 15. The USDA pork carcass cutout value was up 46 cents on Thursday afternoon at an average weighted price of $70.10. The national base cash hog carcass value was 33 cents lower in the PM report, with a weighted average of $51.44. FI hog slaughter WTD was estimated at 1.896 million head through Thursday, which is 188,000 larger than the same week last year.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are trading 18 to 24 points higher this morning. They ended Thursday with most nearby contracts 108 to 112 points higher. Support came from rumors that the US was considering lifting some tariffs on Chinese imports. Those rumors were not confirmed by the USTR or Treasury. The dollar is slightly weaker. The Cotlook A Index was down 55 points on January 16 to 81.90 cents/lb. With the government now in day 27 of the shutdown, we still don’t have a good grip on how exports have been performing over the past month. Estimated AWP was 63.06 last week, and computes to 64.07 for the coming week.

--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