AgriCharts Market Commentary

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Corn

Corn futures are down 2 to 3 cents at midday, as a few traders are taking profits ahead of the extended weekend. The USDA reported a private cancelation of 132,000 of grain sorghum to unknown destinations for 17/18 delivery this morning. Their weekly Export Sales report indicated old crop sales in the week of 5/17 at 854,304 MT, in the middle of expectations. That was a 13.33% drop from last week but is still 21.12% larger than the same week last year. New crop sales were tallied at 273,424, exceeding analysts’ estimates. China sold another 2.984 MMT of corn from state reserves on Thursday, totaling 74.89% of the offered amount. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT. Deral also reduced their estimate.

Jul 18 Corn is at $4.06 1/2, down 2 cents,

Sep 18 Corn is at $4.15, down 2 1/4 cents,

Dec 18 Corn is at $4.24 1/2, down 2 cents

Mar 19 Corn is at $4.32 1/2, down 1 3/4 cents

Soybeans

Soybean futures are showing fractional gains at the moment. Soymeal is down $2.10/ton, with front month soy oil up 3 points. A private export sale to unknown of 264,000 MT of new crop beans was reported through the USDA’s daily reporting system this morning. This morning’s Export Sales report showed a net reduction of 139,450 MT in old crop sales. Pakistan purchased 248,000 MT, with Bangladesh at 173,100 MT, but a cancelation of 894,500 MT to unknown (previously announced) offset that. New crop sales were reported at just 6,889 MT. Soy meal sales were shown at 196,873 MT, with a 42,641 MT cancelation for 18/19. Sales of soy oil were tallied at 17,698 MT.

Jul 18 Soybeans are at $10.39 3/4, up 1/2 cent,

Aug 18 Soybeans are at $10.43 1/2, up 1/4 cent,

Sep 18 Soybeans are at $10.45 1/2, up 1/2 cent,

Nov 18 Soybeans are at $10.50 1/4, up 1 1/2 cents,

Jul 18 Soybean Meal is at $378.60, down $2.10

Jul 18 Soybean Oil is at $31.73, up $0.03

Wheat

Wheat futures are steady to 4 1/2 cents higher in most contracts at midday. Sales of old crop wheat were reported at 112,265 MT this morning, exceeding most expectations. That was 78% larger than a week ago, but down 44.4% from a year ago. Japan purchased 96,870 MT of US and Canadian wheat in their weekly MOA tender on Thursday, with 63,735 MT US origin. Algeria also purchased wheat in a recent tender, totaling 700,000 MT of optional origin. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Jul 18 CBOT Wheat is at $5.35 1/2, up 4 1/2 cents,

Jul 18 KCBT Wheat is at $5.55 1/2, up 3 3/4 cents,

Jul 18 MGEX Wheat is at $6.43 1/2, up 1 1/2 cents

Cattle

Live cattle futures are mixed on Thursday, with the front months 32.5 to 52.5 cents lower and back months higher. Feeder cattle futures are up 35 cents to $1.375, with May expiring today. The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed this morning. Choice boxes were down $1.07 at $229.01, with Select boxes 14 cents higher at $205.18. Week to date FI cattle slaughter was estimated at 358,000 head through Wednesday. That is 4,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. Export sales of beef were reported at 9,854 MT, a 10.1% drop from last week but 37.9% larger than last year. A few reports of light $114-115 cash trade across the Plains were being reported this morning.

Jun 18 Cattle are at $104.925, down $0.525,

Aug 18 Cattle are at $102.475, down $0.325,

Oct 18 Cattle are at $105.900, up $0.150,

May 18 Feeder Cattle are at $136.275, up $1.375

Aug 18 Feeder Cattle are at $143.875, up $0.525

Sep 18 Feeder Cattle are at $143.650, up $0.350

Lean Hogs

Lean hog futures are currently a dime to a quarter lower at midday. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 85 cents at $73.96 on Thursday morning. The rib was the main cause, down $23.31 in one day. The national base hog weighted average price was 27 cents higher at $65.06 in the morning. The USDA estimated weekly FI hog slaughter at 1.374 million head through Wednesday. That is down 6,000 head from last week but 48,000 above the same week in 2017. Pork sales for export were shown at 20,610 MT in the USDA report this morning. That was down 6% wk/wk but 17.3% larger yr/yr.

Jun 18 Hogs are at $74.350, down $0.250,

Jul 18 Hogs are at $76.125, down $0.100

Aug 18 Hogs are at $74.925, down $0.100

Cotton

Cotton futures are posting triple digit gains in most contracts at midday. This morning’s USDA Export Sales report indicated that just 50,664 RB of old crop upland cotton were sold for export in the week of May 17. That was a MY low, but still more than 3 times larger than the same week last year. New crop sales were reported at 152,178 RB. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The current AWP of 74.09 cents/lb will be updated later today.

Jul 18 Cotton is at 87.37, up 41 points,

Oct 18 Cotton is at 86.45, up 124 points

Dec 18 Cotton is at 85.4, up 135 points

Mar 19 Cotton is at 84.960, up 133 points


Market Commentary provided by:

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