Ag Market Commentary
BRUG - Wed Jan 23, 5:11PM CST

Corn futures ended the Wednesday session with most contracts steady to 1 1/2 cents higher as March was down 1/4 cent. The weekly EIA report showing ethanol production and stocks is delayed until Thursday due to Monday’s holiday. Informa estimates 2019 US planted corn acreage at 91.5 million acres, which is nearly 2.4 million larger than the previous year. Chinese corn imports during December totaled 420,000 MT, while sorghum imports were tallied at 0. Taiwan purchased 65,000 MT of corn on Wednesday, with the origin likely Argentina.

Mar 19 Corn closed at $3.78 3/4, down 1/4 cent,

May 19 Corn closed at $3.87 1/4, unch,

Jul 19 Corn closed at $3.95 1/4, up 1/4 cent

Sep 19 Corn closed at $3.97 3/4, up 3/4 cent

--provided by Brugler Marketing & Management

Soybean futures were up 5 to 6 cents in the front months on Wednesday. Dry and Hot conditions in Brazil are supportive to the market. Meal futures were down 10 cents/ton, with soy oil 32 point higher. Analysts with Informa expect 2019 soybean planted acreage to drop to 86.2 million acres, down 2.9 million from last year. Dr. Michael Cordonnier trimmed his Brazil production estimate by 1 MMT to 115 MMT. A Reuters survey of analysts shows an expected 117 MMT in soybean production.

Mar 19 Soybeans closed at $9.15, up 5 3/4 cents,

May 19 Soybeans closed at $9.28 3/4, up 6 cents,

Jul 19 Soybeans closed at $9.41 3/4, up 6 cents,

Sep 19 Soybeans closed at $9.49 1/4, up 5 3/4 cents,

Mar 19 Soybean Meal closed at $312.90, down $0.10,

Mar 19 Soybean Oil closed at $29.38, up $0.32

--provided by Brugler Marketing & Management

Wheat futures settled Wednesday with most contracts 3 to 5 1/4 cents higher. Most nearby winter wheat contracts closed within a penny of the high. Informa left their winter wheat planted acreage estimate at 31.513 million acres, with other spring wheat projected at 13.78 million acres. Japan is tendering for 102,057 MT of wheat from the US, Canada, and Australia, with the tender to close on Thursday and 53,195 MT sought from the US. Turkey is also seeking 300,000 MT of wheat, with the tender closing on Jan 30.

Mar 19 CBOT Wheat closed at $5.26, up 4 3/4 cents,

Mar 19 KCBT Wheat closed at $5.15, up 5 1/4 cents,

Mar 19 MGEX Wheat closed at $5.75 1/2, up 3 1/2 cents

--provided by Brugler Marketing & Management

Live cattle futures saw 40 to 75 cent gains in most contracts on Wednesday. Feeder cattle futures were up $1.325 to $2.15 in most contracts. The CME feeder cattle index was down 4 cents on January 22 at $141.58. Wholesale boxed beef prices were higher on Wednesday afternoon. Choice boxes were up 87 cents at $217.21, with Select 32 cents higher at $212.04. USDA estimated this week’s FI cattle slaughter at 352,000 head through Wednesday. That is 7,000 head below last week and well above the same week last year. This morning’s FCE auction saw a total of 63 head sold (@ $123) of the 4,139 offered. Most asks were around $124-125, with packers passing.

Feb 19 Cattle closed at $125.550, up $0.425,

Apr 19 Cattle closed at $126.500, up $0.425,

Jun 19 Cattle closed at $116.850, up $0.425,

Jan 19 Feeder Cattle closed at $143.025, up $1.975

Mar 19 Feeder Cattle closed at $143.650, up $2.150

Apr 19 Feeder Cattle closed at $144.675, up $1.725

--provided by Brugler Marketing & Management

Lean Hog futures posted 15 cent to $1.25 losses in most contracts on Wednesday. The CME Lean Hog Index was up 26 cents from the previous day @ $58.33 on January 21. The USDA pork carcass cutout value was down 93 cents on Wednesday afternoon at an average weighted price of $68.70. The national base cash hog carcass value was up 40 cents in the PM report, with a weighted average of $52.49. USDA FI hog slaughter was estimated at 1.342 million head through Wednesday, which is 81,000 below the previous week but 36,000 head larger than this time last year.

Feb 19 Hogs closed at $60.775, down $0.700,

Apr 19 Hogs closed at $64.850, down $1.250

May 19 Hogs closed at $71.275, down $0.750

--provided by Brugler Marketing & Management

Cotton futures were 20 to 39 point in positive territory on the Wednesday session. The dollar was weaker on the day. The Cotlook A Index was UNCH on January 22 to 83.30 cents/lb. Export Sales will likely be postponed again this week, as the shutdown is in day 33 with the two sides seemingly still far apart. The US and China are still on the schedule for meetings at the end of next week. Informa estimates that 2019 US cotton acreage will total 14.637 million acres. Estimated AWP was 63.06 last week, and computes to 64.07 for the week ending this Thursday.

Mar 19 Cotton closed at 73.520, up 39 points,

May 19 Cotton closed at 74.850, up 32 points

Jul 19 Cotton closed at 76.110, up 28 points

--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

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