Ag Market Commentary

Corn futures ended the Friday session with most contracts steady to 2 1/4 cents lower, despite some bullish news from the USDA. This morning’s onslaught of USDA reports saw 2018/19 US yield slashed by 2.5 bpa to 176.4 bpa, which dropped production to 14.420 bbu. After several balance sheet revisions, 18/19 ending stocks were trimmed by 46 mbu to 1.735 bbu. The quarterly Grain Stocks report showed Dec 1 corn stocks at 11.952 bbu, which is down 4.89% from last year and 140 mbu below the average trade estimate. On the bear side, world ending stocks are projected at 309.78 MMT, up 1 MMT from the Dec number. USDA left the Brazil production number at 94.5 MMT, with Argentina at 46 MMT, up 3.5 MMT.

Mar 19 Corn closed at $3.74 1/4, down 2 1/4 cents,

May 19 Corn closed at $3.82 1/4, down 2 cents,

Jul 19 Corn closed at $3.90, down 2 1/4 cents

Sep 19 Corn closed at $3.93 1/2, down 1 3/4 cents

--provided by Brugler Marketing & Management

Soybean futures managed to squeeze out 1 to 1 1/2 cent gains in most contracts on Friday. Meal futures were up 60 cents/ton in the nearby contracts, with soy oil 6 points higher. The NASS Crop Production report showed US soybean yield at 51.6 bpa, down 0.5 bpa from the November update and below most estimates. That dropped production to 4.544 bbu. The new ending stocks projection from USDA is now at 910 mbu, 45 mbu below the previous number. In the quarterly Grain Stocks report, USDA showed Dec 1 soybean stocks at 3.736 bbu, a jump of 575 mbu from the year prior. In the world side of things, USDA saw tighter world carryout by ~8.61 MMT to 106.72 MMT. That was assisted by a 5 MMT cut to Brazil production as expected, now at 117 MMT. Argentina’s output number was down 0.5 to 55 MMT. Chinese soybean consumption was cut 3.5 MMT from the December figure, with imports lowered another 2 MMT.

Mar 19 Soybeans closed at $9.14 1/2, up 1 1/4 cents,

May 19 Soybeans closed at $9.28 3/4, up 1 1/2 cents,

Jul 19 Soybeans closed at $9.42 1/4, up 1 1/4 cents,

Sep 19 Soybeans closed at $9.50 1/4, up 1 1/4 cents,

Mar 19 Soybean Meal closed at $306.10, up $0.60,

Mar 19 Soybean Oil closed at $30.87, up $0.06

--provided by Brugler Marketing & Management

Wheat futures posted steady to 4 cent gains in the MPLS and CBT front months, while KC was steady to 2 1/2 cents lower. The monthly update to USDA’s WASDE report saw US wheat carryout up 36 mbu to 1.01 bbu. That mainly came from revisions to the feed and residual number, with the quarterly stocks updated showing larger wheat stockpiles. The Grain Stocks report indicated that 1.999 bbu of wheat was in on-farm and off-farm storage on Dec 1. That was up 126 mbu from the same time last year. World ending stocks were seen down 0.57 MMT to 267.53 MMT. The Winter Wheat seedings report showed that 31.29 million acres of all wheat was planted this fall, well below estimates and down 1.31 mac from last year. That included 22.2 mac of HRW, 5.66 mac SRW and 3.44 mac of white winter wheat. Egypt’s GASC purchased a total of 300,000 MT of wheat in their tender on Friday. Of the total, 120,000 MT was US and French origin, with 60,000 MT Ukrainian.

Mar 19 CBOT Wheat closed at $5.17 1/4, up 4 cents,

Mar 19 KCBT Wheat closed at $4.94 1/4, down 2 cents,

Mar 19 MGEX Wheat closed at $5.68 1/2, up 4 cents

--provided by Brugler Marketing & Management

Live cattle futures settled with 42.5 cent to $1.075 gains on Friday, with Feb closing a dime off the high. Feeder cattle futures were up 57.5 cents to $1.025. The CME feeder cattle index was down 12 cents on February 7 at $141.69. Wholesale boxed beef prices were lower on Friday afternoon. Choice boxes were down $1.36 at $215.35 with Select 36 cents lower at $211.17. Week to date USDA estimated FI cattle slaughter is 614,000 head through Saturday. That is up 21,000 head from last week and 25,000 larger than the same week last year. A few cash sales ave been reported around $125 on Friday. USDA trimmed 2018 beef production by 75 million pounds to 26.864 billion. Production for 2019 was also revised lower by 175 million pounds to 27.61 billion.

Feb 19 Cattle closed at $127.375, up $1.075,

Apr 19 Cattle closed at $127.925, up $1.100,

Jun 19 Cattle closed at $118.100, up $0.950,

Mar 19 Feeder Cattle closed at $144.100, up $0.850

Apr 19 Feeder Cattle closed at $145.900, up $1.025

May 19 Feeder Cattle closed at $146.900, up $1.000

--provided by Brugler Marketing & Management

Lean Hog futures closed the Friday session with most contracts 22.5 cents to $1.175 lower. The CME Lean Hog Index was down 27 cents from the previous day @ $56.89 on February 6. The USDA pork carcass cutout value was down 29 cents on Friday afternoon at an average weighted price of $64.82. The national base cash hog carcass value was down 13 cents in the PM report, with a weighted average of $49.43 USDA estimated FI hog slaughter for the week at 2.516 million head through Saturday. That is well above the previous week and the same week last year. The 2018 US pork production number was increased by just 10 million lbs to 26.32 billion by the USDA this morning

Feb 19 Hogs closed at $55.050, down $0.225,

Apr 19 Hogs closed at $58.425, down $1.175

May 19 Hogs closed at $66.400, down $0.950

--provided by Brugler Marketing & Management

Cotton futures saw 23 to 30 point losses in most contracts on Friday. The delayed update to cotton production saw a yield drop of 22 pounds/ac to 838. An increase of 160,000 harvested acres saw production drop only ~200,000 bales to 18.390 million bales. The US carryout projection was down 100,000 bales to 4.3 million bales. On the world side, ending stocks were up 1.31 million bales to 75.5 million, as Chinese supply was revised higher on lower consumption. This morning’s Cotton Ginnings report indicated that 16.663 million RB of cotton has been ginned this MY, with 15.993 million RB of that upland cotton. The Cotlook A Index was up 20 points on February 7 to 82.85 cents/lb. The USDA Adjusted World Price is 64.61 cents/lb through next Thursday, down 46 points from the previous week.

Mar 19 Cotton closed at 72.550, down 26 points,

May 19 Cotton closed at 73.690, down 23 points

Jul 19 Cotton closed at 75.010, down 30 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

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.