Ag Market Commentary

Corn futures are steady to fractionally higher in most contracts at midday. 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 is at $3.79, unch,

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

Jul 19 Corn is at $3.95, unch ,

Sep 19 Corn is at $3.97 1/2, up 1/2 cent

--provided by Brugler Marketing & Management

Soybean futures are showing gains of 3 to 4 1/2 cents in most contracts on Wednesday, after rumors of cancelled prep talks with China were denied. Meal futures are up 40 cents/ton, with soy oil 22 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 are at $9.13 1/2, up 4 1/4 cents,

May 19 Soybeans are at $9.27 1/4, up 4 1/2 cents,

Jul 19 Soybeans are at $9.40 1/4, up 4 1/2 cents,

Aug 19 Soybeans are at $9.44 1/4, up 3 1/4 cents,

Mar 19 Soybean Meal is at $313.40, up $0.40

Mar 19 Soybean Oil is at $29.28, up $0.22

--provided by Brugler Marketing & Management

Wheat futures are mostly steady to 3 cents higher on Wednesday. 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 is at $5.24, up 2 3/4 cents,

Mar 19 KCBT Wheat is at $5.12 1/2, up 2 3/4 cents,

Mar 19 MGEX Wheat is at $5.74, up 2 cents

--provided by Brugler Marketing & Management

Live cattle futures are trading 22.5 to 72.5 cents higher on Wednesday. Feeder cattle futures are up 97.5 cents to $1.975. The CME feeder cattle index was down 9 cents on January 21 at $141.62. Wholesale boxed beef prices were mixed on Wednesday morning. Choice boxes were up 40 cents at $216.74, with Select 16 cents lower at $211.56. 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. 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 are at $125.350, up $0.225,

Apr 19 Cattle are at $126.325, up $0.250,

Jun 19 Cattle are at $116.950, up $0.525,

Jan 19 Feeder Cattle are at $142.750, up $1.700

Mar 19 Feeder Cattle are at $143.425, up $1.925

Apr 19 Feeder Cattle are at $144.375, up $1.425

--provided by Brugler Marketing & Management

Lean Hog futures are down 65 cents to $1.80 at the moment. 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 8 cents on Wednesday morning at an average weighted price of $69.55. The national base cash hog carcass value was down 3 cents in the AM report, with a weighted average of $52.06. USDA 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 are at $60.750, down $0.725,

Apr 19 Hogs are at $64.300, down $1.800

May 19 Hogs are at $70.675, down $1.350

--provided by Brugler Marketing & Management

Cotton futures are 48 to 64 points lower in the nearby contracts on Wednesday. The dollar is weaker at midday. 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. Economic advisor Kudlow denied rumors that any meetings with China had been cancelled. The two countries are scheduled for meetings at the end of next week. Estimated AWP was 63.06 last week, and computes to 64.07 for the week ending this Thursday.

Mar 19 Cotton is at 73.77, up 64 points,

May 19 Cotton is at 75.07, up 54 points

Jul 19 Cotton is at 76.31, up 48 points

Oct 19 Cotton is at 74.960, up 51 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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