Ag Market Commentary

Corn futures are trading mostly 1 cent per bushel higher this morning. They ended Monday steady to fractionally lower. Weaker than expected export data was a drag on the market. The weekly Export Inspections report from USDA showed that just 501,541 MT of corn was shipped in the week of January 3, which included the New Year’s holiday and should have been somewhat anticipated. That was 47.37% lower than the week prior and 41.05% below the same New Year holiday week last year. YTD shipments are still 61.33% above this time last year. Sorghum shipments are down 70.46% yr/yr with the lack of Chinese purchases a key factor. China approved one new GM corn trait (DP4114) for importation after no approvals since 2017.

--provided by Brugler Marketing & Management



Soybean futures are fractionally higher this morning. They closed Monday with most contracts 2 to 3 cents in positive territory. Deliveries against January soybean futures are still going strong in a game of ‘hot potato’. There were 1,152 contracts put out on Monday night. Soymeal was up $3.10/ton yesterday, with soy oil 4 points lower. Both Sinograin and COFCO are actively shopping for US soybeans. The private firms on the other hand are still hamstrung by the 25% tariff and are buying token amounts of South American product. Weekly USDA soybean export inspections totaled 673,172 MT. That was down 10.98% from the previous week and 44.58% below the same holiday week in 2018. The Netherlands led the way with 138,531 MT shipped. A load of 74,166 MT out of the Pacific was also headed to China. US and Chinese negotiators will conclude talks in Beijing today.

--provided by Brugler Marketing & Management



Wheat futures are currently UNCH (MPLS) to 2 1/2 cents higher (CHI) after settling steady to 4 cents lower on Monday. Weak export data offset a lower dollar. There was a little net selling interest in Chicago, with preliminary open interest up 3959 contracts. Weekly Export Inspections data showed that wheat shipments in the New Year’s week of Jan 3 totaled 260,134 MT. That was down 31.58% from last week but up 10.59% from the same week last year. The Philippines took the largest chunk of the total at 87,297 MT. Following their rejection of an Argentine cargo on quality grounds, Algeria is tendering for 50,000 MT of wheat for late Feb and early March delivery.

--provided by Brugler Marketing & Management



Live cattle futures saw 65 cent to $1.275 gains in most contracts on Monday, the first day of the Goldman Roll and also the index fund rebalancing window. Preliminary open interest was up 1,007 contracts. Feeder cattle futures were up 85 cents to $1.10. The CME feeder cattle index was up 46 cents on January 4 at $146.06. Wholesale boxed beef prices were mixed on Monday afternoon. Choice boxes were down 23 cents at $214.28, with Select 55 cents higher at $208.21. USDA estimated Monday’s FI cattle slaughter at 118,000 head. That was 1,000 head above the same week last year.

--provided by Brugler Marketing & Management



Lean Hog futures were a nickel to 52.5 cents lower in most contracts on Monday. The CME Lean Hog Index was up 38 cents from the previous day @ $53.63 on January 3. The USDA pork carcass cutout value was up 86 cents on Monday afternoon at an average weighted price of $70.56. The belly primal was up $5.00. The national base cash hog carcass value was 67 cents higher in the PM report, with a weighted average of $48.87. Monday’s FI hog slaughter was estimated at 480,000 head, which was 22,000 head larger than the same Monday last year.

--provided by Brugler Marketing & Management



Cotton futures are currently 50 to 77 points higher. They posted 11 to 23 point gains in most contracts on Monday. The nearby contracts were more than 100 points off their intraday highs. The dollar was weaker on Monday but is seeing a Turnaround Tuesday bounce this morning. The US and China met for trade talks in Beijing on Monday and concluded the round today. China has been rolling previous 2018/19 purchases into the 2019/20 delivery period recently. Traders hope the negotiations will put a halt to that demand slippage. Unlike soybeans, there has been little to no reporting of China purchasing cotton as a goodwill gesture. The Cotlook A index was up 1.80 points from the previous day on January 7 at 81.80 cents/lb.

--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
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

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.