AgriCharts Market Commentary

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Corn Market 5 to 6 Cents Lower

Corn futures are trading 5 to 6 cents per bushel lower ahead of the weekly Export Sales report. With the exception of one contract they were fractionally higher on Wednesday. EIA reported weekly ethanol production at 1.066 million barrels per day in the week of July 12. That was a jump of 19,000 bpd from the week prior and slightly above the same week last year. Implied corn consumption still lags the pace to meet the USDA forecast for the year. Stocks on that date were 23.365 million barrels, 356,000 barrels above last week and historically high for July. Trade ideas for the USDA Export Sales report have old crop corn running 250,000-500,000 MT, with new crop at 100,000-300,000 MT for the week of July 11. --provided by Brugler Marketing & Management

Soybean Market 3 to 4 Cents Lower Ahead of Export Sales

Soybean futures are currently 3 to 4 cents lower. Beans saw 5 to 6 cent losses in the front months on Wednesday. The 6-10 and 8-14 day forecasts call for some cooler and drier weather on the way. August soybean meal was down 90 cents/ton, with soy oil 31 points lower on Wednesday. USDA is expected to show 0-400,000 MT of old crop soybean bookings in the week that ended on July 11, with surveyed traders showing a range of 100,000-300,000 MT for new crop. Soybean Meal sales are estimated to be somewhere between 50,000-300,000 MT, with total soy oil sales at 5,000-50,000 MT. --provided by Brugler Marketing & Management

Wheat Lower in All Three US Markets, Spreads Contract

Wheat futures are 1 to 2 cents lower in the MPLS market, 4 to 5 lower in KC HRW and 6 to 7 lower in Chicago SRW this morning. They ended the Wednesday session with most contracts 2 to 5 cents in the red. Dry and warm weather is allowing for the winter wheat harvest to move north. All wheat export sales during the week that ended on July 11 are expected to be in the range of 200,000-400,000 MT. Egypt’s GASC purchased just 60,000 MT of Russian wheat in their tender on Wednesday, with no US origin offers. US FOB prices are ~$20/ton above other major competitors. The US does have opportunities in some markets due to freight or special baking qualities. --provided by Brugler Marketing & Management

Cattle Market Squaring Positions Ahead of COF Report

Live cattle futures saw 10 to 80 cent losses in most contracts on Wednesday. Feeder cattle futures were 47.5 cents to $1.15 lower. Analysts are expecting July 1 cattle on feed to be about 1.8% above the same time last year in this Friday’s report. Placements are seen 2.1% lower during June, with marketings down 3%. As usual, there is a wide spread of ideas on placements. The biannual Cattle Inventory will also be released that afternoon. The dairy cow herd is expected to be smaller, with more debate about the beef cow herd. The CME feeder cattle index was down 8 cents @ $141.01 on July 16. Wholesale boxed beef prices were lower on Wednesday afternoon with Choice boxes down 36 cents per cwt and Select boxes 82 cents lower. USDA estimated week to date FI cattle slaughter at 360,000 head through Wednesday. That was even with the previous week and 6,000 larger than the same week last year. Wednesday’s FCE online auction showed sales of $111 on all 326 head offered from NE, KS, and TX. Bids of $112 live and $180-181 have been reported in the North post sale, with asks of $114 and $186. --provided by Brugler Marketing & Management

Lean Hogs Just Miss Limit Up on Firmer Products

Lean Hog futures saw strong triple digit gains on Wednesday, with August missing limit up by a nickel. The CME Lean Hog Index was down 11 cents from the previous day on July 15 @ $70.63. The USDA pork carcass cutout value was up another 68 cents in the Wednesday PM report at $76.48. The belly and rib were the only primals reported lower. The national average base hog value was up $1.10 on Wednesday afternoon at $70.43. Estimated FI hog slaughter through Wednesday was 1.348 million head. That was down 87,000 head from last week due to plant down time and even with the same week last year. --provided by Brugler Marketing & Management

Cotton Market Into New Life of Contract Lows

Cotton futures are trading 7 to 72 points lower this morning, with weakness focused in the October and December contracts. They closed Wednesday with most contracts 23 to 61 points lower. The 5-day QPF shows most cotton growing areas west of MS getting very little moisture in that timeframe. USDA will update the weekly Export Sales report later this morning. The Cotlook A index for July 16 was up 130 points from the previous day at 74.95 cents/lb. The weekly AWP is 58.05 cents/lb this week and will be updated on Thursday. --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