Ag Market Commentary

Corn futures ended the Wednesday session with most contracts 2 to 2 3/4 cents higher. The weekly EIA report showing ethanol production in the week of January 11, pegged output at 1.051 million barrels per day. That was up 51,000 bpd from the week prior and was the largest weekly production (and corn use) since the last week of November. Stocks were also up 97,000 barrels at 23.351 million barrels, with the Midwest and West Coast seeing the reductions. Several South Korean importers purchased a total of 260,000 MT of optional origin corn on Wednesday. Iran also tendered for 300,000 MT of corn, though sanctions on the country made any purchasing limited.

Mar 19 Corn closed at $3.74, up 2 3/4 cents,

May 19 Corn closed at $3.82 1/4, up 2 1/2 cents,

Jul 19 Corn closed at $3.90, up 2 1/2 cents

Sep 19 Corn closed at $3.93 3/4, up 2 1/4 cents

--provided by Brugler Marketing & Management



Soybean futures saw fractional to 1 1/4 cent gains in most contracts on Wednesday. Soymeal futures were up 80 cents/ton, with soy oil 1 point lower. Lack of Chinese demand is not only being felt due to the trade war, but also with the country’s lower hog numbers due to ASF. USDA Sec. Perdue announced several FSA offices will be open Thursday, Friday, and next Tuesday for assistance with “loans and other limited services.” Celeres is the latest Brazilian firm to cut their country’s soybean production estimate, down 4.9 MMT to 117.2 MMT.

Mar 19 Soybeans closed at $8.94 1/2, up 1 1/4 cents,

May 19 Soybeans closed at $9.08, up 1 1/4 cents,

Jul 19 Soybeans closed at $9.20 3/4, up 1 cent,

Sep 19 Soybeans closed at $9.29 1/2, up 3/4 cent,

Mar 19 Soybean Meal closed at $310.10, up $0.80,

Mar 19 Soybean Oil closed at $28.23, down $0.01

--provided by Brugler Marketing & Management



Wheat futures settled Wednesday with KC contracts steady to fractionally mixed. CBT SRW was up 1 to 2 1/2 cents, with MPLS 2 1/2 to 4 1/2 cents higher. Frigid temps are expected across much of the Northern Plains this weekend, though many of the areas did receive snow cover from last weekend’s storm. With the government still in partial shutdown mode, Export Sales will not be released on Thursday morning. A South Korean feed importer purchased 65,000 MT of optional origin wheat on Wednesday. A Chinese auction of state reserves saw 99,961 MT, or 3.3% of the offered amount, sold on Wednesday. Chinese officials noted stronger than expected government auction sales in 2018 and suggested that the oldest corn in their inventory would be gone or rotated by the end of 2019.

Mar 19 CBOT Wheat closed at $5.12 1/2, up 1 1/2 cents,

Mar 19 KCBT Wheat closed at $4.95 1/2, unch,

Mar 19 MGEX Wheat closed at $5.65, up 3 cents

--provided by Brugler Marketing & Management



Live cattle futures ended the Wednesday session with most contracts 25 to 87.5 cents higher. Feeder cattle futures were mixed, with nearby contracts 5 to 97.5 cents lower and back months higher. The CME feeder cattle index was down 25 cents on January 15 at $144.19. Wholesale boxed beef prices were mixed on Wednesday afternoon. Choice boxes were 31 cents lower at $211.90, with Select up $1.07 at $206.94. USDA estimated week to date FI cattle slaughter at 359,000 head through Wednesday. That is 2,000 head above last week and 11,000 head larger than the same week last year. There were no sales on Wednesday’s FCE, with most asks around $127.

Feb 19 Cattle closed at $127.825, up $0.875,

Apr 19 Cattle closed at $127.725, up $0.300,

Jun 19 Cattle closed at $117.500, up $0.450,

Jan 19 Feeder Cattle closed at $143.775, down $0.975

Mar 19 Feeder Cattle closed at $144.700, down $0.050

Apr 19 Feeder Cattle closed at $145.550, up $0.050

--provided by Brugler Marketing & Management



Lean Hog futures posted 27.5 cent to $2.10 losses in most contracts on Wednesday. The CME Lean Hog Index was up 44 cents from the previous day @ $57.65 on January 14. The USDA pork carcass cutout value was down 69 cents on Wednesday afternoon at an average weighted price of $69.64. The national base cash hog carcass value was 26 cents higher in the PM report, with a weighted average of $51.70. FI hog slaughter WTD was estimated at 1.423 million head through Wednesday, which is 140,000 larger than the same week last year. China’s Ag Ministry reported that their hog herd was down 4.8% in Dec vs. last year, with sow numbers a sharp 8.3% lower.

Feb 19 Hogs closed at $60.050, down $2.100

Apr 19 Hogs closed at $65.075, down $1.875

May 19 Hogs closed at $70.825, down $1.150

--provided by Brugler Marketing & Management



Cotton futures were up 82 to 91 points in most contracts on Wednesday. The Cotlook A Index was up 30 points on January 15 to 82.45 cents/lb. A Cotton Grower survey showed that 13.6 million acres of cotton intended for 2019, compared to 14.05 last year. Secretary Perdue announced that ~2,500 FSA employees will return to work on Thursday, Friday, and next Tuesday to help with loans in process and other limited items. Only selected office locations will be open on those days.

Mar 19 Cotton closed at 73.270, up 91 points,

May 19 Cotton closed at 74.540, up 82 points

Jul 19 Cotton closed at 75.710, up 82 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
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

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