Ag Market Commentary

Corn futures closed the day with losses of 2 to 4 cents, after showing gains earlier in the session. Rains across the Corn Belt put pressure on the market The weekly EIA ethanol report showed average daily ethanol production for the week of June 9 at 1.002 million barrels per day (bpd). That is up 3,000 bpd over last week, with an estimated 105.2 million bushels of corn being used during the week. Ethanol stocks rose 560,000 barrels to 22.542 million barrels, as the Midwest was the only region to see shrinking stocks. Traders are expecting old crop export sales to range 500,000-700,000 MT in tomorrow’s USDA export sales report, with 100,000-300,000 MT for new crop. Private analysts in China has estimated that 22.8 MMT of corn from state reserves has been sold since May, with this week’s projected amount around 3.5.

Jul 17 Corn closed at $3.77, down 4 cents,

Sep 17 Corn closed at $3.85, down 3 1/2 cents,

Dec 17 Corn closed at $3.95 1/2, down 3 1/2 cents

Mar 18 Corn closed at $4.04 3/4, down 3 1/2 cents



Soybean futures ended the Wednesday trading session fractionally lower in the front months, with back months higher. Soy meal was up 30 cents in the front month, with July 17 soy oil steady. Old crop export bookings for the week of June 8 are projected to be 250,000-500,000 MT, as new crop is expected at 100,000-300,000 MT. Soy meal total export sales are estimated at 50,000-250,000 MT, with soy oil expected to range 5,000-35,000 MT in the weekly USDA report. The NOPA report will be released tomorrow at 11:00 a.m. CDT with crush ideas in the 143-144 million bushel range. Producer sales in Brazil have picked up over the past few days on a lower Real. China’s ag ministry has approved for import some additional varieties of GMO corn and soybeans.

Jul 17 Soybeans closed at $9.31 3/4, down 3/4 cent,

Aug 17 Soybeans closed at $9.35 1/4, down 1 cent,

Sep 17 Soybeans closed at $9.36 1/4, down 1/2 cent,

Jan 18 Soybeans closed at $9.46 1/2, up 1/4 cent,

Jul 17 Soybean Meal closed at $301.80, up $0.30,

Jul 17 Soybean Oil closed at $32.09, unch,



Wheat futures showed losses in most CBT contracts. Both KC and MPLS were higher, with July 17 MPLS 1/2 cents lower.Analysts are showing estimates of 350,000-550,000 MT for US 2017/18 export sales for the week of June 8. Australia’s wheat production projection was updated to 24.19 MMT, from 23.9 MMT in March, by ABARE. Germany’s 2017 wheat crop is estimated at 25.2 MMT, up 0.22 MMT from May’s estimate on wet weather. Some analysts are estimating that Egypt will import nearly 6 MMT of wheat this year, up 11.11% from last year. Russian FOB offers have dipped below US FOB Gulf after several weeks at premium levels. French wheat FOB Rouen is still much cheaper.

Jul 17 CBOT Wheat closed at $4.43, down 2 cents,

Jul 17 KCBT Wheat closed at $4.57 1/2, up 1/2 cent,

Jul 17 MGEX Wheat closed at $6.27 1/2, down 1/2 cent



Live cattle futures finished with limit losses in the front months on Wednesday. Thursday will have expanded limits for live cattle contracts. Feeder cattle futures were down $3 to $4.40 on the day. The CME feeder cattle index was down 29 cents on June 13 at $153.92. Wholesale beef prices were lower in the afternoon report, with choice boxes down 16 cents at $251.03. Select was 79 cents lower, with an average of $220.66. Trade data from the FCE was unavailable this morning due to technical problems. Cash cattle exchanged hands at around $130 in NE today, with bids of $128 in the South. Tuesday trade was around $130-$134. Estimated FI cattle slaughter through Wednesday was 350,000 head, up 1,000 from last week and 15,000 head more than the same week a year ago.

Jun 17 Cattle closed at $124.500, down $3.000,

Aug 17 Cattle closed at $117.875, down $3.000,

Oct 17 Cattle closed at $114.800, down $2.575,

Aug 17 Feeder Cattle closed at $146.125, down $3.825

Sep 17 Feeder Cattle closed at $145.700, down $4.000

Oct 17 Feeder Cattle closed at $144.100, down $4.225



Lean hog futures settled 17.5 to 22.5 cents higher in the front months, with deferred contracts lower. June expired at $83. The CME Lean Hog Index for 6/12 was up another 57 cents to $81.16. The USDA pork carcass cutout value was 10 cents higher in the afternoon report, with a weighted average of $95.07. The loin and butt primals were lower. The national base hog carcass price was $2.17 higher with a weighted average of $81.99 in the afternoon report. Prices ranged from $78.00-$84.50. The IA/MN and WCB regions were up $3.06 and $2.83 respectively. Through Wednesday, estimated week to date FI hog slaughter was 1,277,000 head, 37,000 fewer than last week and 3,000 head below last year.

Jun 17 Hogs closed at $83.000, up $0.225,

Jul 17 Hogs closed at $82.575, up $0.300

Aug 17 Hogs closed at $80.400, up $0.175



Cotton futures posted losses of 64 to 98 points on the day. The US dollar was down 551 points early in the session before rebounding. The Federal Reserve increased target short term interest rates 0.25% this afternoon as was widely expected. Traders are expecting tomorrow’s export sales report to improve over last week’s old crop sales of 82,700 RB. China sold another 18,500 MT of the 30,300 MT of cotton offered at an auction of state reserves. The AWP for this week is 68.03 cents/lb, and will be updated tomorrow afternoon.The Cotlook A index for June 13 was 25 points lower to 86 cents/lb.

Jul 17 Cotton closed at 73.500, down 98 points,

Oct 17 Cotton closed at 72.920, down 94 points

Mar 18 Cotton closed at 71.020, down 79 points






Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

First you raise it, then you market it!  Check out the full Brugler advisory service with this special Harvest 2Fer offer at  http://bit.ly/Harvest2Fer.


 

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.