Ag Market Commentary

In the overnight trading corn futures moved fractions of a cent higher after ending the Wednesday session mixed. July futures remained UNCH, there were 3/4 cent losses in the Sep contracts, and nearby Mar and May posted gains. The national corn basis from cmdtyView was at -0.1388 for 01/22. Compared to last year it’s 18.91 cents firmer, and 9 out of the past 10 trading days it has tightened. The latest rounds of RIN generation were released, non-cellulosic (corn based D6) ethanol received 1.286 billion RINs from December production. The year’s total was 14.7087 billion gallons, and an average monthly generation rate of 1.225 billion. Total RINS for 2019 topped 19.75 billion gallons including imports, cellulosic, biodiesel, etc.

--- provided by Brugler Marketing & Management



Soybean futures start off Thursday with losses of 4 cents or more from overnight trades. Yesterday, soybean futures closed with red on the board as futures were down 2 to 2 1/4 cents. Soy meal futures were down by $1.20/ton in the March futures. March bean oil futures were 27 points higher. Board crush margins have widened to more than $1.00 per bushel, making the buying of soybean futures more attractive to crushers. However, early harvest results out of Brazil have yield estimates there creeping higher. EPA reported the D4 RIN production in 2019 totaled 4.13 billion gallons, with 2.57 billion generated by domestic producers.

--- provided by Brugler Marketing & Management



Your Thursday wheat market is starting off steady to 2 cents per bushel higher. KC HRW is hovering near UNCH. Yesterday wheat closed lower in all three markets, with HRW futures the weakest. KC wheat futures closed down by 7 1/2 cents, and Chicago wheat futures were down by 3 3/4 cents. Spot futures prices had traded at the highest level since August 2018 in the overnight session. MGE HRS wheat futures had losses of 5 to 6 3/4 cents in the front months. Russian FOB prices continue to climb since their September bottom. Recent quotes are $226/MT ($6.15/bushel). French prices have also firmed as frequent strikes interrupt grain movement. Japan issued a tender for 108,926 MT of wheat, with 82,692 MT of U.S. specific. Results are expected later today.

--- provided by Brugler Marketing & Management



Live cattle futures ended the Wednesday session with losses of 20 to 72 cents in the front months. Front month feeder cattle futures were down triple digits, ending the session with losses of as much as $1.62. The 01/21 CME Feeder Cattle index was down 29 cents to $145.17. The NASS Cold Storage report showed that frozen beef stocks as of December 31st were 481.012 million lbs, which was a 2.95% decrease vs. Dec 2018. Total red meat stocks were at an all-time high for the end of December. Based on wire surveys, traders expect to see about a 2% increase in cattle on feed as of Jan 1 vs. year ago, that would put it at 11.948 million head. Placements in December are anticipated to be 3.4% higher, with an estimated 1.828 million head. The average estimate is to see 1.832 million head of marketings, a 5.2% increase year over year. Wholesale boxed beef prices were mixed this afternoon, pushing the Chc/Sel spread to $2.94. Choice boxes were up 45 cents, while Select boxes were $1.45 lower. USDA’s estimate for weekly FI cattle slaughter through Wednesday was 368,000 head.

---provided by Brugler Marketing & Management



Lean hog futures closed the Wednesday trading session with gains of 20 cents to 70 cents. The 01/20 CME Lean Hog Index was 4 cents higher to $60.18. USDA’s Pork Carcass Cutout gained another $0.55 this afternoon, up to $79.74 cwt. USDA’s National Average Afternoon Base Hog price was back up by 16 cents to $51.90. The USDA monthly cold storage report showed that frozen pork in coolers December 31st totaled 580.904 million lbs. Compared to last year, that is up 14.97%, and was a one month increase of 1.05%. December pork in storage was the highest on record for that month. Belly stocks were seen at 68.015 million lbs, which was an increase of 61% yr/yr and a 25% increase over the end of November. USDA estimated week to date FI hog slaughter at 1.402 million head through Wednesday.

---provided by Brugler Marketing & Management



Cotton futures are trading 80 to 90 points lower this morning. The two previous sessions have featured triple digit days in opposite directions. On Wednesday, cotton closed with gains of 128 to 189 points in the front months. The March futures were up the most, erasing all but 5.97% of the 201 point drop from Tuesday. On 01/21 The Seam online cotton trading platform added 2,752 bales sold at 57.19 cents/lb. The week’s total is 3,344 bales, compared to last week totaled 99,899 bales sold. In Pakistan, Prime Minister Imran Khan reestablished the country’s national cotton committee; along with other direct measures aimed at revitalizing domestic production (such as rewriting restrictive seed laws, adapting farmer assistance programs, and providing subsidies for certain technology). The 01/21 Cotlook A index remained at 80.20 cents/lb. Cotton’s Adjusted World Price from FSA will see its weekly update later this afternoon. The previous week change was a 32-point increase to 61.40 cents/lb.

---provided by Brugler Marketing & Management






Market Commentary provided by:

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Phone: 402-697-3623
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