AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are currently 1 to 1 3/4 higher after fractional gains in most contracts on Wednesday. Corn in flooded grain bins is considered contaminated and cannot be sold commercially. NASS is unlikely to be able to quantify such losses until the June stocks report. The weekly EIA report indicated ethanol production in the week that ended on 3/15 slipped 1,000 barrels per day to 1.004 million bpd. Stocks at the end of that week rose 681,000 barrels wk/wk to a record 24.412 million barrels. The Midwest neared their record totals, up 383,000 barrels as rail movement was hindered due to flooding. Export sales for the week of 3/14 are expected to total 0.6-1 MMT for old crop corn in tomorrow morning’s USDA report, with new crop at 0-300,000 MT.

--provided by Brugler Marketing & Management

Soybean Market News and Commentary

Soybean futures are fractionally higher this morning. They ended the Wednesday session with most contracts 2 to 3 cents higher. Meal futures were up 80 cents/ton, with soy oil 3 points higher. Strong Board profitability for hogs is supporting meal. Analysts are expecting 18/19 soybean export bookings of 0.6-1.6 MMT for the week of 3/14 in Thursday’s USDA Export Sales report. New crop sales are estimated at 0-150,000 MT. Soybean meal sales are seen at 150,000-400,000 MT, with soy oil at 8,000-30,000 MT. Brazil’s Ag Minister says she expects to head to China later this Spring to strengthen soybean trade.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are trading 1 to 3 cents lower across the three markets this morning. They posted 4 to 8 1/4 cent gains in most contracts on Wednesday. Short covering was noted in Chicago, with preliminary open interest dropping 4,275 contracts. There is still significant snow cover in the Dakotas and Minnesota. As it melts, water levels are rising in that area. Where it isn’t melting, the ground is still frozen. It’s going to be a while before spring wheat planting begins. All wheat exports sales for the week of 3/14 are estimated in the range of 200,000-450,000 MT for old crop and 100,000-225,000 MT for new crop. Taiwan is seeking 110,000 MT of US wheat in a tender that expires on Friday. FCStone estimates Brazil imports in 18/19 down 1.3 MMT to 5.7 MMT on larger domestic production. Argentine supplies are also available.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures closed the day with most contracts 45 to 90 cents higher. Open interest rose, confirming net new buying interest. Feeder cattle futures were steady to $1.95 in the green. The CME feeder cattle index was down 26 cents on March 19 at $137.41. Wholesale boxed beef prices were lower in the Wednesday afternoon report, with the Choice/Sel spread at $10.04/cwt. Choice boxes were down 66 cents at $228.67, as Select was 83 cents lower @ $218.63. USDA estimated this week’s FI cattle slaughter at 355,000 head through Wednesday. That was up 7,000 head from the previous week and even with this time last year. The 596 head offered on Wednesday’s FCE auction went unsold, with the cattle offered at $129-130.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures posted limit gains in most front months on Wednesday, with Thursday having expanded limits of $4.50. Preliminary open interest rose a modest 3,339 contracts, with most of the new buying in the October and December contracts. The CME Lean Hog Index was up $1.00 from the previous day @ $57.54 on March 18. Futures have been anticipating the rally in cash for several weeks now. Are futures nervous about the rally? Options implied volatility jumped over 38% for the June contract on Wednesday. The USDA pork carcass cutout value was down 9 cents on Wednesday afternoon at an average weighted price of $74.05. The national base hog carcass value was up $2.79 in the PM report at an average weighted price of $60.38. USDA estimated WTD FI hog slaughter at 1.409 million head, up 5,000 from the previous week and 25,000 above last year.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are trading 7 to 18 points higher this morning. They settled with the front months 15-16 points lower and deferred contracts lightly higher. A weaker US dollar supported the market yesterday, but the buck is sharply higher following the FOMC meeting. The Cotlook A Index was down 20 points on March 19 to 84.15 cents/lb. The USDA Adjusted World Price (AWP) was updated to 64.10 cents/ lb on Thursday, up 68 points from the week prior. The Federal Reserve left interest rates UNCH on Wednesday, indicating no rate hikes expected for the rest of this year. USDA will release their Export Sales report for the week of March 14 on this morning at 7:30 AM CDT.

--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