Ag Market Commentary
BRUG - Fri May 17, 7:28AM CDT

Corn futures are trading 3 to 4 cents higher this morning. They continue to trade the wet weather forecasts, with most contracts settling up 4 to 9 1/2 cents in the front months on Thursday. The 7-day QPF shows forecasts for 5-7 inches of rain for the heart of the Corn Belt, likely further delaying planting. USDA showed 553,334 MT of old crop corn sales in the week of May 9. That was nearly double last week but 43.7% lower than the same week last year. The Buenos Aires Grain Exchange estimates that 34% of Argentina’s corn crop is harvested, about the normal pace. They also left their production estimate at 48 MMT, vs. USDA at 49 MMT.

--provided by Brugler Marketing & Management



Soybean futures are mostly 3 to 4 cents lower this morning, anticipating more acreage if corn is delayed. Beans had 4 to 5 cent gains in the nearby contracts yesterday. July soy meal was up $2.20/ton, with soybean oil 48 points higher. The Export Sales report from FAS indicated that 370,908 MT of 18/19 soybeans were sold during the week of May 9. That was 79.4% larger than last year at this time. Sales of 303,400 MT for 2019/20 were the largest seen so far. Meal sales totaled 265,432 MT, with soy oil at 10,793 MT. BAGE raised their Argentine soy crop estimate by 1 to 56 MMT, They show 76.7% of the crop harvested, 6.1% above the average.

--provided by Brugler Marketing & Management



Wheat futures are 3 to 5 cents higher this morning in the KC and Chicago contracts, and up to 11 cents higher in MPLS spring.wheat. They posted 13 to 18 1/4 cent gains in the winter wheat contracts on Thursday, with MPLS up 7 to 11 1/2 cents. Old crop wheat export sales in the week of May 9 were 114,478 MT, 81.55% larger than the same week last year. Total unshipped sales now account for 3.517 MMT, with just 3 reporting weeks left in the MT, as total commitments are up 8.8% from last year. New crop sales were reported at 419,375 MT, above the range of estimates and a marketing year (MY) high. Total forward 19/20 sales are now 2.977 MMT, up 44.66% from a year ago at this time.

--provided by Brugler Marketing & Management



Live cattle futures ended the Thursday session with most contracts 80 cents to $1.45 higher. Feeder cattle futures came off their lows to post 87.5 cent to $1.30 gains, with nearby May down $1.70. The CME feeder cattle index was down $1.75 to $133.06 on May 15. Wholesale boxed beef prices were lower on Thursday afternoon. Choice boxes were down a penny at $219.56 with Select boxes 16 cents lower @ $207.88. USDA estimated weekly FI cattle slaughter at 484,000 head through Thursday. That was up 3,000 head from the previous week and 5,000 above the same week last year. Cash sales have been reported at ~$117 this week. Weekly beef export sales at 16,941 MT were down from last week but up 54.54% from the same week in 2018. Shipments were the second largest of 2019 at 18,225 MT.

--provided by Brugler Marketing & Management



Lean Hog futures are mixed on Thursday, with front months lower and deferred contracts higher. The CME Lean Hog Index was up 41 cents from the previous day @ $83.68 on May 14. The USDA pork carcass cutout value was 68 cents lower at $86.13 on Thursday afternoon. The national average base hog was 55 cents lower on Thursday, at an average weighted price of $81.26. Estimated weekly FI hog slaughter was 1.845 million head for the WTD through Thursday. That was 48,000 head below the previous week but 25,000 above the same week last year. USDA’s Export Sales report showed just 10,480 MT of pork sales in the week of May 9, with reductions of 3,247 MT for China. Export Shipments were seen at 23,502 MT in that week, including 4,600 MT to China.

--provided by Brugler Marketing & Management



Cotton futures are trading 21 to 67 points lower this morning. They settled the Thursday session with most contracts steady to 45 points higher. The weekly USDA Export Sales report showed 266,919 RB in old crop upland cotton sales in the week that ended on May 9. That was 48.05% larger than a year ago, as China bought a net 4,798 RB. Turkey was the lead buyer of 70,700 RB, with India at 55,800 RB. New crop sales totaled a 5 week high 176,447 RB. Shipments slipped from the previous week to 362,767 RB, which was down 14.19% from a year ago at this time. That included 64,366 MT to China. The Cotlook A index for May 14 was up 135 points from the previous day to 77.35 cents/lb. The weekly Average World Price (AWP) is now 59.59 cents/lb, down 5.06 cents from last week.

--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

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