Ag Market Commentary

Corn futures ended the Tuesday session with most contracts 2 to 3 cents in negative territory. Weaker ethanol and spillover from soybeans pressured the market lower. USDA Export Inspections data on Tuesday morning showed that 1.108 MMT of corn was shipped in the week that ended 1/17. That was 9.28% larger than the week prior and 53.23% above the same time last year. EU data released on Monday showed corn imports YTD (since July 1 for them) have totaled 9.25 MMT. That is up 45% from the previous year due to tight supplies stemming from drought last year.

Mar 19 Corn closed at $3.79, down 2 3/4 cents,

May 19 Corn closed at $3.87 1/4, down 2 3/4 cents,

Jul 19 Corn closed at $3.95, down 2 1/4 cents

Sep 19 Corn closed at $3.97, down 2 3/4 cents

--provided by Brugler Marketing & Management

Soybean futures closed Tuesday with the nearby contracts 5 to 7 1/2 cents lower. Soymeal futures were down $2.10/ton, with soy oil 5 points higher to lead the product values. Reports that the US rejected a Chinese offer for preparatory talks this week ahead of next week’s meeting between the two countries dragged on the market. Economic advisor Larry Kudlow denied the cancellation of any meeting. The weekly Export Inspections report indicated 1.111 MMT of soybeans were exported during the week of January 17. That was 2.08% larger than last week but still 21.9% below the same week in 2018. Shipments to China picked up in that week, with a combined 416,408 MT in exports out of the Gulf and Pacific.

Mar 19 Soybeans closed at $9.09 1/4, down 7 1/2 cents,

May 19 Soybeans closed at $9.22 3/4, down 7 1/4 cents,

Jul 19 Soybeans closed at $9.35 3/4, down 6 3/4 cents,

Sep 19 Soybeans closed at $9.43 1/2, down 5 1/2 cents,

Mar 19 Soybean Meal closed at $313.00, down $2.10,

Mar 19 Soybean Oil closed at $29.06, up $0.05

--provided by Brugler Marketing & Management

Wheat futures ended the day with most winter wheat contracts 2 to 4 1/2 cents higher, as MPLS was down 1 to 2 1/2 cents lower. All wheat export inspections were reported at 516,643 MT in for the week that ended on 1/17. That was down 5.52% from the prior week but 21.96% larger than the same week in 2018. Egypt was the top US wheat export destination for the week @ 117,542 MT. It has been a while since we said that! Private forecaster SovEcon is estimating Russian wheat exports for January will drop to 2.3 MMT from 4.3 MMT in December.

Mar 19 CBOT Wheat closed at $5.21 1/4, up 3 1/2 cents,

Mar 19 KCBT Wheat closed at $5.09 3/4, up 3 3/4 cents,

Mar 19 MGEX Wheat closed at $5.72, down 2 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures posted 65 cent to $1.40 losses in most contracts Tuesday. Feeder cattle futures were 40 cents to $1.45 lower on the day. The CME feeder cattle index was down 9 cents on January 21 at $141.62. Wholesale boxed beef prices were higher on Tuesday afternoon. Choice boxes were up $1.08 at $216.34, with Select 86 cents higher at $211.72. USDA estimated this week’s FI cattle slaughter at 235,000 head through Tuesday. That is 4,000 head below last week and well above the same week last year. Wednesday’s online FCE auction has a total of 4,139 head on showlists, with a majority out of Nebraska.

Feb 19 Cattle closed at $125.125, down $1.400,

Apr 19 Cattle closed at $126.075, down $1.300,

Jun 19 Cattle closed at $116.425, down $1.025,

Jan 19 Feeder Cattle closed at $141.050, down $0.400

Mar 19 Feeder Cattle closed at $141.500, down $1.325

Apr 19 Feeder Cattle closed at $142.950, down $1.450

--provided by Brugler Marketing & Management

Lean Hog futures were mixed on Tuesday, with most contracts steady to 70 cents higher and April down 17.5 cents. The CME Lean Hog Index was down 9 cents from the previous day @ $58.07 on January 18. The USDA pork carcass cutout value was down $1.20 on Tuesday afternoon at an average weighted price of $69.63. The belly was the only primal reported lower, down $9.45. The national base cash hog carcass value was down 15 cents in the PM report, with a weighted average of $52.20. FI hog slaughter was estimated at 876,000 head through Tuesday, which is 67,000 below the previous week but 35,000 head larger than this time last year.

Feb 19 Hogs closed at $61.475, up $0.250,

Apr 19 Hogs closed at $66.100, down $0.175

May 19 Hogs closed at $72.025, unch,

--provided by Brugler Marketing & Management

Cotton futures saw 76 to 79 point losses in most contracts on Tuesday. The government shutdown continues, now into day 32. Secretary Perdue announced that all FSA offices will be open on Thursday to provide services (listed on USDA’s website). The deadline for MFP payment applications is delayed until February 14. The Cotlook A Index was down 50 points on January 21 to 83.30 cents/lb. Estimated AWP was 63.06 last week, and computes to 64.07 for the week ending this Thursday.

Mar 19 Cotton closed at 73.130, down 76 points,

May 19 Cotton closed at 74.530, down 79 points

Jul 19 Cotton closed at 75.830, down 76 points

--provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
Fax: 402-289-2353

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