AgriCharts Market Commentary

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Corn Down 2 to 5 Cents on the Overnight Session

Corn futures are trading 2 to 5 cents lower this morning. They ended the Turnaround Tuesday session with 4 to 6 cent losses in most nearby contracts. Profit taking after hitting a 5-year high on Monday weighed on the market. Some pressure also came from weakness wheat, as the nearby KC wheat-corn spread was 16 1/2 cents at Tuesday’s close. That was the tightest since 2013. Monday’s Crop Progress report showed that OH still has 32% of the crop left to be seeded, with IL 12% remaining. EIA will release their weekly ethanol production and stocks data later this morning. Dr Michael Cordonnier raised his 18/19 Brazilian corn production estimate by 1 MMT to 100 MMT.

--provided by Brugler Marketing & Management

Soybeans Lower on Wednesday Morning

Soybean futures are down 5 to 7 cents this morning, since closing Tuesday with most contracts fractionally to 2 cents higher. Forecasts for heavy rainfall totals in most of the Corn Belt (especially the ECB), with 23% of the crop left to be planted supported the market on Tuesday. Losses in corn and wheat were seen as pressure. Soymeal was down $2.30/ton, with bean oil 19 points higher. USDA reported that IL was 70% planted, IN was 74%, MO at 57% and OH just 46% planted by Sunday. MN was 94% complete, with IA at 89% and NE 91% planted. TN was the only of the 18 states reported faster than normal.

--provided by Brugler Marketing & Management

Wheat Lower Again to Start Wednesday

Wheat futures are mostly 5 to 10 cents in the red this morning. They saw 3 to 10 1/4 cent losses in most contracts on Tuesday, pressured by profit taking. The weekly Crop Progress update showed the winter wheat harvest in KS at just 1% (12% avg), with OK 40% back of normal at 16% harvested. Heavy rains forecast for most of OK and KS will likely slow the harvest even further. Spring wheat condition ratings in MN were up 5 points, with ND down 1. Japan is seeking 61,864 MT of US wheat, with the tender to close on Thursday. Egypt’s GASC is tendering for wheat for late July delivery, with the tender to close on Wednesday.

--provided by Brugler Marketing & Management

Cattle Close Mostly Higher on Tuesday

Live cattle futures settled Tuesday with most contracts 35 to 90 cents higher and the nearby contracts steady to a few ticks lower. Feeder cattle futures got some help with the weakness in corn, up 32.5 cents to $1.05. The CME feeder cattle index was down 34 cents to $133.21 on June 17. Wholesale boxed beef prices were lower on Tuesday afternoon. Choice boxes were down $1.29 at $220.53 with Select boxes 71 cents lower @ $201.80. USDA estimated the week to date FI cattle slaughter @ 240,000 head. That was 6,000 head larger than the same point last year and down 3,000 from last week. A few scattered bids of $109 have been reported so far on Tuesday.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures were mixed on Tuesday, with nearby contracts 17.5 cents to $1.575 lower and deferred contracts higher. The CME Lean Hog Index was down 19 cents from the previous day @ $79.27 on June 14. The USDA pork carcass cutout value was down $1.82 on Tuesday afternoon at $81.15. The loin and butt primals were the only reported higher. The national average base hog was 46 cents lower at $75.68 per hundred pounds. This week’s estimated FI hog slaughter is 477,000 head through Tuesday. That was up 1,000 from the previous week and 84,000 head above the same week in 2018. Vietnam’s ag ministry reported that the country had culled more than 2.5 million head of hogs so far in order to limit the spread of ASF.

--provided by Brugler Marketing & Management

Cotton Showing Gains this Morning

Cotton futures are trading 29 to 84 points higher this morning. They ended Tuesday mixed, with nearby contracts 31 to 69 points higher and back months higher. President Trump this morning tweeted that he and President Xi of China will have an “extended meeting next week at the G-20,” with trade talks to begin prior to their meeting. NASS reported that planting in TX progressed to 86% by Sunday, with the state’s ratings back up 9 points to 322. OK planting was at just 64% complete. The Cotlook A index for June 17 was down 75 points from the previous day to 77.05 cents/lb. The weekly Average World Price (AWP) from USDA is 58.97 cents/lb through next Thursday, down 2.54 cents from last week.

--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