Ag Market Commentary

Corn futures settled mixed in Friday’s lame duck session, with nearby contracts 1 to 2 cents higher and deferred contracts as much as 2 3/4 cents lower. USDA’s Export Sales report this morning indicated that 175,561 MT of old crop corn was sold for export in the week of June 27. That was a 40.47% drop from the previous week and 40.16% lower than the same week in 2018. New crop sales totaled 156,251 MT. A total of 48,778 MT of sorghum was sold to China in that week. The weekly CFTC Commitment of Traders report has been delayed until Monday by the mid-week holiday. EPA proposed leaving 2020 mandated use for conventional ethanol at 15 billion gallons, UNCH from 2019.

JUL 19 Corn closed at $4.34, up 1 cent,

SEP 19 Corn closed at $4.38 3/4, up 2 cents,

DEC 19 Corn closed at $4.42 1/4, up 1 cent

MAR 20 Corn closed at $4.49, up 3/4 cent

--provided by Brugler Marketing & Management

Soybean futures closed 13 to 14 1/4 cents lower on Friday. Nearby July soybean meal was down $2.20/ton, with soy oil 58 points lower. EPA proposed a biodiesel use of 2.45 billion gallons for 2020, unchanged from 2019. That was disappointing to soy oil, as most of the recent growth in demand for that byproduct has been in fuel use. The latest Export Sales report from USDA showed 867,564 MT of soybeans sold in the week of June 27. That was a 13-week high, thanks to a large sale to China (a weekly total 607,328 MT), and 54.5% larger than the same week last year. New crop sales totaled 161,500 MT. Soy meal sales totaled just 25,351 MT, a MY low, with soy oil at 19,735 MT. USDA’s Ag attaché in China projects Chinese imports of soybeans in 19/20 will drop to 83 MMT, 4 MMT below the Official USDA number.

JUL 19 Soybeans closed at $8.72 1/4, down 13 cents,

AUG 19 Soybeans closed at $8.76, down 13 3/4 cents,

SEP 19 Soybeans closed at $8.82 1/4, down 14 cents,

NOV 19 Soybeans closed at $8.94 1/2, down 14 1/4 cents,

JUL 19 Soybean Meal closed at $303.80, down $2.20,

JUL 19 Soybean Oil closed at $27.44, down $0.58

--provided by Brugler Marketing & Management

Wheat futures ended the Friday session with the nearby winter wheat contracts steady to 3 cents higher. MPLS was 5 to 6 3/4 cents lower. This morning’s USDA Export Sales report indicated 276,496 MT of wheat sales for the week that ended on June 27. That nudged its way into the range of expectations, down 54.8% from last week and 37.17% below the same week last year. Through the first 4 weeks of the new MY, total export commitments are 20.56% larger than this point in 2018. Algeria purchased at least 360,000 MT of wheat in their recent tender on Thursday. French wheat conditions dropped 5% in gd/ex ratings to 75% according to a weekly FranceAgriMer report.

JUL 19 CBOT Wheat closed at $5.19 1/4, up 1 1/4 cents,

JUL 19 KCBT Wheat closed at $4.39, up 3 cents,

JUL 19 MGEX Wheat closed at $5.34 1/4, down 6 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures saw $1.15 to $1.775 gains in most contracts on Friday with August up 2.54% this week. Cash trade in the South this week was around $109-110, with sales up to $113.50 reported by USDA in NE. Feeder cattle futures were up $1.125 to $2.25 on the day, with August up 1.44% on the week. The CME feeder cattle index was down $1.19 @ $133.21 on July 4. Wholesale boxed beef prices were lower on Friday afternoon. Choice boxes were down $1.58 at $217.67 with Select boxes 56 cents lower @ $194.80. USDA estimated weekly FI cattle slaughter at 573,000 head through Saturday. That was up 3,000 head from the same holiday shortened week last year. Beef export sales of 18,690 MT in the week of June 27 were reported by the USDA this morning. Throughout May, Census recorded 272.334 million lbs of beef exported to all destinations, which was just 0.2% below last years monthly record and 11.8% larger yr/yr. Shipments to South Korea were at a May record 63.186 million lbs.

AUG 19 Cattle closed at $107.000, up $1.550,

OCT 19 Cattle closed at $108.075, up $1.775,

DEC 19 Cattle closed at $112.325, up $1.400,

AUG 19 Feeder Cattle closed at $138.825, up $2.250

SEP 19 Feeder Cattle closed at $138.700, up $1.750

OCT 19 Feeder Cattle closed at $138.900, up $1.300

--provided by Brugler Marketing & Management

Lean Hog futures are down $1.225 to $2.825 at midday. The CME Lean Hog Index was down 79 cents from the previous day @ $73.22 on July 2. The USDA pork carcass cutout value was up $1.69 @ $73.17 on Friday afternoon. The national average base hog price was down $1.32 on Friday afternoon at $65.82. Estimated FI hog slaughter for WTD through Saturday is 2.072 million head. That was up 87,000 head from same week last year. USDA showed 23,521 MT of pork sold for export in the week of 6/27. Shipments were at 27,009 MT, with 8,107 MT headed to China. Census trade data for May showed pork shipments at 511.437 million pounds, down 0.8% from last years May record and 2.5% lower than April. Exports to China were at a 3-year high 56.751 million lbs, which was also the 4th largest on record for May.

JUL 19 Hogs closed at $72.125, down $1.425,

AUG 19 Hogs closed at $77.050, down $1.325

OCT 19 Hogs closed at $70.075, down $2.725

--provided by Brugler Marketing & Management

Cotton futures saw 28 to 82 point losses in the front months on Friday. All upland cotton export sales in the week that ended on June 30 totaled 141,498 RB for old crop, well above the same week last year and a 4-week high. A total of 14,860 RB was sold to China, with Vietnam the top buyer of 49,900 RB. New crop sales totaled 55,261 RB, with a net reduction of 1,320 RB for China. Total shipments in the week of 6/27 were at 340,365 RB, with 49,471 RB headed to China. YTD shipments are 13.97% lower than the same week last year, with total commitments 5.7% back of last year’s number for this week. The Cotlook A index for July 4 was UNCH from the previous day at 78.35 cents/lb. The USDA AWP is now 59.32 cents/lb through next Thursday, up 1 cent from the previous week. The weekly Cotton On-Call report from CFTC showed mills at a total of 32,814 contracts of unfixed call sales for December, with unfixed call purchases at 39,149 contracts.

JUL 19 Cotton closed at 62.93, down 82 points,

OCT 19 Cotton closed at 66.23, down 32 points

DEC 19 Cotton closed at 66.85, down 40 points

MAR 20 Cotton closed at 67.83, down 28 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

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