Ag Market Commentary
Corn futures are currently steady to a penny higher after bouncing 3 1/4 to 4 cents higher on Turnaround Tuesday. The weekly EIA ethanol report will be released this morning at 9:30 a.m. CST. Informa Economics increased their 2017 US corn acreage projection to 90.186 million acres, up from their May estimate of 89.7 million acres. The Crop Progress report showed IL, IA, and IN with slightly lower conditions, as the Dakotas dropped significantly. SD was down 33 points to 327, with ND down 13 to 350 points.

Soybean futures are trading mostly 4 cents higher this morning.They settled with slight gains on Tuesday, as most contracts were 1/4 to 1 1/4 cents higher. Soy meal was down 30 cents in the front month, with July 17 soy oil 15 points higher. On Tuesday, Informa Economics updated their 2017 soybean planted acres estimate to 89.362 million acres, down slightly from May’s number of 89.7 million acres. The first USDA soybean condition ratings of 2017 in most major growing areas were lower than last year, with parts of the ECB and Dakotas around 40 points worse than this time last year, using the Brugler500 index. Analysts are expecting the NOPA report on Thursday to show May crush at 143.192 million bushels. That would be down 5.97% from last May but up 4.42% from April if realized. May 31 soy oil stocks are projected at 1.745 billion pounds, an increase from April and 12.49% lower than May 2016.

Wheat futures are 11 to 15 cents higher in MPLS spring wheat this morning. KC HRW is up 5-6 cents and Chicago SRW is 2 to 4 higher. Spread traders are having a field day as millers chase protein. CBT was 10 to 12 1/4 cents higher on Tuesday, with KC 7 1/4 to 14 1/4 cents in the green. MPLS was the strongest, as it saw sharp gains of 27 1/2 cents in July and 28 1/4 cents in September. Individual state progress shows winter wheat in TX 72% harvested, with OK 52% complete, and KS at 4%. Spring wheat ratings dropped as expected to 45% g/e, down 10% wk/wk and 34% yr/yr. Individual state ratings show Montana and the Dakotas dropping significantly, as SD was only 13% g/e. Taiwan purchased 92,400 MT of US wheat on Tuesday in their tender. Egypt’s GASC purchased a total of 300,000 MT of wheat on Tuesday, with 180,000 MT from Russia, 60,000 MT from Romania and 60,000 MT from Ukraine. No US wheat was offered. Japan is seeking 162,286 MT of wheat from the US, Canada, and Australia, as 98,536 MT is US specific, with the tender closing on Thursday.

Live cattle futures were down 45 to 90 cents on Tuesday. Feeder cattle futures were also 80 cents to $1.60 lower. The CME feeder cattle index was up 6 cents on June12 at $154.21. Wholesale beef prices were lower in the Tuesday afternoon report, with choice boxes down $1.33 at $251.19. Select was 32 cents, with an average of $221.45. Cash trade on Tuesday was light with a few sales around $130-134. Showlists for today’s FCE auction are only listing 1,041 head on 9 lots. Estimated FI cattle slaughter through Tuesday was 234,000 head, up 1,000 from last week and +12,000 head from the same week a year ago.

Lean hog futures finished Tuesday with gains of 20 cents to $1.575 in the front months, with deferred contracts 5 to 22.5 cents lower. The CME Lean Hog Index for 6/9 was up another 57 cents to $80.59. The USDA pork carcass cutout value was $1.83 higher in the afternoon report, with a weighted average of $94.97. All primal cuts were reported higher. The national base hog carcass price was $2.54 higher with a weighted average of $79.76 in the afternoon report. The higher cash values encouraged futures to reverse Monday losses. Through Tuesday, estimated FI hog slaughter WTD was 844,000 head, 31,000 fewer than last week and 10,000 head below last year.

Cotton futures are 8 to 11 lower this morning, excluding thin October. They ended Tuesday with losses of 25 to 65 points in most contracts. The US dollar showed slight losses on the session, down 136 points. Most states are ahead of their respective Brugler 500 rating last year, with AZ and LA lagging slightly. As of Sunday, individual state data shows TX is 14% squared, with GA 17%. On Tuesday, China sold 19,300 MT of the 29,900 MT of cotton offered at an auction of state reserves. The AWP for this week is 68.03 cents/lb.

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

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