AgriCharts Market Commentary

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Corn Market 1 to 2 Lower Ahead of Export Sales

Corn futures are 1 to 2 cents lower after closing 2 to 4 1/2 cents lower on Wednesday. The ethanol market is weaker, following a slight uptick in stocks. Weakness in wheat also dragged on corn yesterday. The EIA report showed ethanol production in the week of 4/19 picking up by 32,000 barrels per day to 1.048 million bpd. That was the largest weekly output since early January. Stocks were up 71,000 barrels to 22.747 million barrels, with the Gulf and East Coast the only regions seen higher. Analysts are expecting to see 0.6-1 MMT in old crop corn export sales for the week of 4/18 in this morning’s report, with 0-100,000 MT expected for new crop.

--provided by Brugler Marketing & Management

Soybeans Mostly 2 Cents Higher Overnight

Soybean futures are mostly 2 cents higher this morning. They settled with 6 3/4 cent losses in all 2019 contracts on Wednesday. Meal futures were 60 cents/ton lower, with May soy oil 14 points in negative territory. May options expire on Friday. Old crop soybean export bookings are seen at 300,000-700,000 MT in today’s Export Sales report, with 0-50,000 MT for new crop. Canadian Canola acreage is expected to be down 6.6% from last year at 21.314 million acres per Stats Canada. Canadian soybean acreage is also seen down 10.7% yr/yr at 5.64 million acres. They don’t have to fight the Chinese tariffs, but they can see the mammoth US and South American stocks. The positive news failed to get soy oil into plus territory. Weakness in the Brazilian Real vs. the dollar was also seen as pressure for US soybeans on Wednesday.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are mixed this morning, with KC HRW hovering around UNCH, Chicago SRW 2 cents lower and MPLS 2 cents higher. They ended the Wednesday session with most contracts 6 to 10 cents lower, following confirmation of higher Canadian acres. Canadian wheat planting intentions were 25.674 million acres for 2019, up 3.8% from last year and above most trade estimates for the Stats Canada report. That jump in acreage is driven by a 12% yr/yr increase in spring wheat acres, at 19.387 million. That is also a 22.69% jump in spring wheat acres since 2017. Durum acreage intentions were down 18.8% at 5.021 million acres. This morning’s Export Sales report is expected to show 200,000-450,000 MT in old crop wheat sales for the week of April 18, with 100,000-300,000 MT for new crop.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures saw $1.55 to $2.775 losses in most contracts on Wednesday. Feeder cattle futures were down $2.775 to $3.10 in the 2019 contracts. The CME feeder cattle index was down 6 cents to $145.78 on April 23. Wholesale boxed beef prices were lower on Wednesday afternoon. Choice boxes were down $1.15 at $232.96, with Select boxes 98 cents lower @ $220.28. USDA estimated this week’s FI cattle slaughter at 357,000 head through Wednesday. That was down 6,000 head from the week prior but 3,000 above the same week last year. Wednesday’s FCE online auction saw one lot of 124 head sold for $127, with the other 3 lots unsold and asks of $127.75-128. A few cash trades were reported at $126 in the South on Wednesday.

---provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures were 40 cents to $1.35 higher in the nearby contracts on Wednesday. The CME Lean Hog Index was up another 53 cents from the previous day @ $82.07 on April 22. The USDA pork carcass cutout value was $1.94 lower in the Wednesday afternoon report, at $86.98. The butt and rib primals were the only reported higher. The national average base hog was at $80.98 on Wednesday, up 41 cents from the day prior. Estimated week to date FI hog slaughter is 1.276 million head through Wednesday. That was down from last year and the week prior due to Monday’s plant down time. The trade is keenly interested in the level of Chinese pork purchases in this morning’s weekly Export Sales report.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are trading 23 to 44 points higher this morning. They posted 79 to 80 point losses in the front months on Wednesday. The Dollar index saw strength on Wednesday and has continued to rise this morning, reaching its highest point since May 2017. There were 114 deliveries against May futures on Wednesday. USDA will update their weekly Export Sales report on Thursday, with a close eye kept on Chinese business following their recent increase in quota. The Cotlook A Index was down 50 points at 87.75 on April 23. The weekly Average World Price (AWP) is 68.88 and will be updated later today.

--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