Ag Market Commentary

Corn futures saw 1 to 2 cent gains in most contracts on Wednesday, despite weak ethanol data this morning. Support was from the lower dollar and higher ethanol prices, which followed crude (up 5.33% on the day). This morning’s weekly EIA report indicated ethanol production in the week of January 4 dropping another 11,000 barrels per day to 1 million bpd. That is the lowest production total since April 20 of last year. Stocks were up for the second week in a row, this time by 92,000 barrels to 23.254 million barrels. The Gulf and West Coast were the only regions to show reductions.

Mar 19 Corn closed at $3.82, up 2 cents,

May 19 Corn closed at $3.90, up 2 cents,

Jul 19 Corn closed at $3.97 1/2, up 1 3/4 cents

Sep 19 Corn closed at $4.00, up 1 1/2 cents

--provided by Brugler Marketing & Management

Soybean futures posted 5 to 5 1/2 cent gains on Wednesday, after US/China trade talks concluded. Soymeal futures were up $1.40/ton, with soy oil 14 points higher. Following the 3-day meeting between US and China, a US trade representative stated one of the focuses was China’s pledge to buy a “substantial amount” of US goods. That is a follow up from earlier talks, with still few details on what, when, and how much will be purchased. With the government shutdown still ongoing, Export Sales data will not be released on Thursday morning. AgRural cut their Brazil production estimate by 4.5 MMT from November to 116.9 MMT. CONAB will be out with their updated estimates tomorrow morning.

Jan 19 Soybeans closed at $9.11 1/2, up 5 1/4 cents,

Mar 19 Soybeans closed at $9.24, up 5 1/2 cents,

May 19 Soybeans closed at $9.37 1/4, up 5 1/2 cents,

Aug 19 Soybeans closed at $9.53 1/2, up 5 1/4 cents,

Jan 19 Soybean Meal closed at $319.00, up $1.40,

Jan 19 Soybean Oil closed at $28.32, up $0.14

--provided by Brugler Marketing & Management

Wheat futures were steady to 4 cents higher in most contracts on Wednesday. KC saw fractional losses in the back months. Taiwan bought 111,650 MT of US wheat in their recent tender on Wednesday. Egypt’s GASC purchased 415,000 MT of Russian wheat on Wednesday, with 295,000 MT for Feb 20-28 delivery and 120,000 MT for March 1-10 delivery. Algeria purchased 550,000 MT of optional origin wheat in a tender that closed on Tuesday. French 18/19 exports outside of the EU are now projected at 8.7 MMT by FranceAgriMer, down 0.1 MMT from last month.

Mar 19 CBOT Wheat closed at $5.20, up 2 1/4 cents,

Mar 19 KCBT Wheat closed at $5.05 1/2, up 1/2 cent,

Mar 19 MGEX Wheat closed at $5.70 1/2, up 3 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures ended the day with most contracts steady to 50 cents lower. Feeder cattle futures were down 20 to 80 cents. The CME feeder cattle index was up 7 cents on January 8 at $145.70. Wholesale boxed beef prices were lower on Wednesday afternoon. Choice boxes were down 14 cents at $213.84, with Select 79 cents lower at $206.47. USDA estimated WTD FI cattle slaughter at 357,000 head through Wednesday. That was 4,000 head above the same week last year. The FCE saw no sales on the 571 head offered online on Wednesday, with feedlots asking $125.

Feb 19 Cattle closed at $124.800, down $0.500,

Apr 19 Cattle closed at $125.800, down $0.350,

Jun 19 Cattle closed at $117.250, down $0.225,

Jan 19 Feeder Cattle closed at $146.825, down $0.800

Mar 19 Feeder Cattle closed at $144.900, down $0.550

Apr 19 Feeder Cattle closed at $145.475, down $0.625

--provided by Brugler Marketing & Management

Lean Hog futures closed Wednesday with most contracts 47.5 cents to $1.525 higher. The CME Lean Hog Index was up 35 cents from the previous day @ $54.85 on January 7. The USDA pork carcass cutout value was down 49 cents on Wednesday afternoon at an average weighted price of $69.67. The national base cash hog carcass value was $1.02 higher in the PM report, with a weighted average of $51.19. This week’s FI hog slaughter through Wednesday was estimated at 1.423 million head, which was 54,000 head larger than the same week last year.

Feb 19 Hogs closed at $63.775, up $1.175,

Apr 19 Hogs closed at $67.550, up $1.525

May 19 Hogs closed at $74.200, up $1.250

--provided by Brugler Marketing & Management

Cotton futures settled the Wednesday session with most nearby contracts 126 to 146 points in positive territory. Sharply higher crude oil prices and a weaker dollar were supportive. Some of the focus in the recent US/China trade talks was over China’s pledge to buy a substantial amount of US goods. At the moment, we have little way of gauging current export demand with the government shutdown keeping the Export Sales reports from being released. The Cotlook A index was up 40 points from the previous day on January 8 at 81.90 cents/lb.

Mar 19 Cotton closed at 73.130, up 146 points,

May 19 Cotton closed at 74.520, up 145 points

Jul 19 Cotton closed at 75.660, up 126 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
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