Ag Market Commentary

Corn futures showed gains of 4 to 4 3/4 cents on Wednesday, supported by specs covering their short position. That was the largest 1 day move for the March contract since December 4. The weekly EIA report will be delayed until Thursday, with ethanol production coming off a steep drop in the previous weeks to 996,000 bpd. Data from the FSA shows 964,596 prevent plant acres for corn in their final acreage survey report. That was down 8.33% from the January 2017 report and is the fewest number of acres since 2012. South Korea purchased 137,000 MT of corn on Wednesday, with the optional origin source likely from the US or South America. Despite forecasts of rains, producers in Brazil don’t expect a huge reduction in corn acreage for the second crop, though some analysts would disagree. With the slower soybean crop, corn planting could be delayed beyond the ideal time.

Mar 18 Corn closed at $3.53, up 4 3/4 cents,

May 18 Corn closed at $3.61, up 4 1/4 cents,

Jul 18 Corn closed at $3.69 1/4, up 4 1/4 cents

Sep 18 Corn closed at $3.76 3/4, up 4 cents

Soybean futures finished somewhat strong on Wednesday, considering March settled 7 1/2 cents off the low up 3/4 cent. Meal futures were $1.50/ton higher, with nearby soy oil 28 points lower. The USDA reported a private export sale of 130,000 MT of soybeans for 18/19 delivery to Unknown Destinations through their daily reporting system. Prevent plant acres in the FSA’s final report were at 435,430 acres for the 2017 soybean crop. That was well above last year’s 236,609 acres. In Brazil’s largest soybean producing state of Mato Grosso, forward sales have totaled nearly 42% of the 17/18 soybean crop, lagging last year’s pace of 55%.

Mar 18 Soybeans closed at $9.68 3/4, up 3/4 cent,

May 18 Soybeans closed at $9.80, up 1/2 cent,

Jul 18 Soybeans closed at $9.89 1/2, up 1/2 cent,

Sep 18 Soybeans closed at $9.89 1/2, unch,

Mar 18 Soybean Meal closed at $324.30, up $1.50,

Mar 18 Soybean Oil closed at $32.51, down $0.28

Wheat futures closed the Wednesday session with most HRW and SRW contracts 3 to 5 cents in the green on short covering. MPLS HRS contracts were fractionally higher. The FSA reported that US wheat producers enrolled in 619,685 prevent plant acres for the 2017 wheat crop. That was the fewest number of acres since 2012 and was 65.33% lower than the previous year. Ukraine exports of wheat have totaled nearly 11.7 MMT during the 17/18 marketing year so far according to their ag ministry, which lags the same time in the previous year by 0.6 MMT. The weekly Export sales report will be delayed until Friday.

Mar 18 CBOT Wheat closed at $4.21 1/2, up 5 cents,

Mar 18 KCBT Wheat closed at $4.27, up 5 cents,

Mar 18 MGEX Wheat closed at $6.11 3/4, up 1/4 cent

Live cattle futures finished Wednesday with nearby Feb just off the limit, up $2.875. Feeder cattle futures were also sharply higher, with gains of $1.725 to $2.275. The CME feeder cattle index on January 16 was $145.01, down 37 cents from the previous day. Wholesale boxed beef values were down 28 cents in both grades on Wednesday afternoon. Choice boxes were at $205.30, with Select boxes at $199.61. Estimated week to date FI cattle slaughter was 353,000 head through Wednesday. That 1,000 head fewer than last week. This morning’s FCE online auction saw only 108 of the 304 head sold at a price of $119.75, with offers of $118 and $119.50 passed by feedlots. Cabs bids around the country were still around $118 on Wednesday.

Feb 18 Cattle closed at $120.975, up $2.875,

Apr 18 Cattle closed at $122.775, up $2.400,

Jun 18 Cattle closed at $114.450, up $2.100,

Jan 18 Feeder Cattle closed at $147.875, up $2.275

Mar 18 Feeder Cattle closed at $145.975, up $2.050

Apr 18 Feeder Cattle closed at $146.125, up $2.050

Lean hog futures ended the day with most nearby contracts 45 cents to $1.175 in the red, with back months slightly lower. The CME Lean Hog Index was up 77 cents on January 15 at $71.92. The USDA pork carcass cutout value was up 24 cents at $80.95 in the Wednesday afternoon report. The loin, ham, and belly primals were reported lower. The national base hog weighted average price was down 7 cents to $69.64 this afternoon. The USDA FI hog slaughter was estimated at 1,294,000 through Wednesday, which is 107,000 larger than the same week last year, but 85,000 head lower than last week.

Feb 18 Hogs closed at $72.725, down $1.175,

Apr 18 Hogs closed at $75.525, down $0.625

May 18 Hogs closed at $80.550, down $0.450

Cotton futures posted gains of 40 to 74 points in the front months on Wednesday, with deferred contracts mixed. Recent weakness in the dollar has provided support. The US dollar was lower into the cotton close, but rebounded to finish 484 points higher. Online cash sales for Tuesday reported on the Seam totaled 15,426 bales, as prices averaged 72.07 cents/lb, down 42 points from the previous day. The USDA Adjusted World Price (AWP), currently at 71.21 cents/lb, will be updated on Thursday. The Cotlook A Index for January 16 was UNCH from the previous day at 92.35 cents/lb.

Mar 18 Cotton closed at 82.140, up 71 points,

May 18 Cotton closed at 82.390, up 72 points

Jul 18 Cotton closed at 82.600, up 74 points

Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
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