Ag Market Commentary

Corn futures are currently 2 to 3 cents lower in most contracts on Monday. The USDA reported a private export sale of 130,000 MT of corn to South Korea for 17/18 delivery through their daily reporting system this morning. The Export Inspections report this morning showed 1.074 MMT in corn shipments during the week of 2/1. That is 6.2% larger than the week prior but 4.4% lower than the same week in 2017. China is launching an anti-dumping probe into imports of US sorghum to the country. This may be in response to President Trump placing tariffs on Chinese solar panels and washing machines last week.

Mar 18 Corn is at $3.59 1/2, down 2 cents,

May 18 Corn is at $3.67 1/4, down 2 1/4 cents,

Jul 18 Corn is at $3.75, down 2 1/4 cents

Sep 18 Corn is at $3.82, down 2 1/2 cents

Soybean futures are trading 5 to 6 cents lower at midday, with pressure from Argentine rain forecasts. Meal futures are down $2.80/ton, with nearby soy oil 10 points higher. A private export sale of 198,600 MT of soybeans to Unknown Destinations, with 132,000 MT for 17/18 delivery and 66,600 MT for 18/19 was reported by the USDA this morning. This morning’s USDA weekly inspections report showed exports of 1.304 MMT of soybeans for the week ending Feb 1. That was 15.33% above last week but 20.98% behind this week last year. Stats Canada reported the country’s canola stocks on Dec 31 at 14.146 MMT. That was slightly lower than trade expectations of 14.3 MMT but 5.7% larger than December 2016 and still a new record high.

Mar 18 Soybeans are at $9.73 1/4, down 5 1/2 cents,

May 18 Soybeans are at $9.84 3/4, down 5 1/2 cents,

Jul 18 Soybeans are at $9.94 1/2, down 5 1/4 cents,

Aug 18 Soybeans are at $9.97, down 5 1/4 cents,

Mar 18 Soybean Meal is at $328.60, down $2.80

Mar 18 Soybean Oil is at $32.61, up $0.10

Wheat futures are mostly 2 to 3 cents in the red in the MPLS and KC contracts, as CBT is down 4 to 6 cents. All wheat export inspections for the week that ended on 2/1 were 428,557 MT. That is down 26.32% from the previous week and lags the same week last year by 37.46%. This morning’s Stats Canada report showed all wheat stocks at 23.555 MMT on December 31. That was under most expectations and a 2.2% drop from a year ago. Of that total, durum wheat stocks were at 4.825 MMT, down 21.4% from last year. Iraq is seeking 50,000 MT of wheat from Australia, Canada, or the US with the tender closing Feb 11. In their recent tender, Saudi Arabia purchased 739,000 MT of wheat with origins of EU, North and South America and Australia.

Mar 18 CBOT Wheat is at $4.41, down 5 3/4 cents,

Mar 18 KCBT Wheat is at $4.60 3/4, down 2 1/2 cents,

Mar 18 MGEX Wheat is at $6.01, down 2 3/4 cents

Live cattle futures are steady to 55 cents lower in most contracts. Feeder cattle futures are also in the red, with most contracts down 40 to 85 cents. The CME feeder cattle index was up 50 cents on February 1 at $148.03. Wholesale boxed beef values were higher on Monday Morning. Choice boxes were up 75 cents at $209.85, with Select boxes $1.05 higher at $204.50. Estimated weekly FI cattle slaughter was 629,000 head last week. That was up 41,000 from the previous week and 33,000 head larger than the same week last year. Most cash sales were reported at $126 last week. Show list collection appears to be the main activity today.

Feb 18 Cattle are at $126.800, down $0.050,

Apr 18 Cattle are at $126.000, down $0.125,

Jun 18 Cattle are at $117.700, down $0.300,

Mar 18 Feeder Cattle are at $150.075, down $0.850

Apr 18 Feeder Cattle are at $151.150, down $0.625

May 18 Feeder Cattle are at $151.050, down $0.725

Lean hog futures are mixed at midday, with nearby Feb 35 cents higher and back months lower. The CME Lean Hog Index was up 23 cents on February 1 at $74.10. The USDA pork carcass cutout value was 20 cents higher at $81.83 in the Monday AM report. The butt, picnic, and rib were all reported higher. The national base hog weighted average price was down a penny to $72.67. The WCB region was $1.65 lower, with IA/MN down $1.68. The USDA estimated last week’s FI hog slaughter at 2,438,000, which is 68,000 larger than the previous week, and 111,000 head more than the same week last year.

Feb 18 Hogs are at $75.550, up $0.350,

Apr 18 Hogs are at $72.300, down $1.250

May 18 Hogs are at $78.250, down $1.075

Cotton futures are down 54 to 57 points in the front months at midday. The US dollar is showing 300 points higher at the moment. Spec traders in cotton futures and options backed 11,786 contracts off their large CFTC net long position to 96,376 contracts as of Jan 30. Friday’s Cotton Classing report showed 427,966 bales of upland cotton was classed during the week of Feb 1, bringing the total this season to 17.889 million bales. The USDA Adjusted World Price or AWP is 71.35 cents/lb, through Thursday. The Cotlook A index on February 1 was 89.05 cents/lb, up 120 points from the previous day.

Mar 18 Cotton is at 76.74, down 56 points,

May 18 Cotton is at 78.04, down 57 points

Jul 18 Cotton is at 78.92, down 54 points

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

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.