AgriCharts Market Commentary

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Corn

Corn futures settled the day with most contracts 2 to 3 3/4 cents lower. The USDA reported a private sale of 140,000 MT of optional origin corn split evenly between 17/18 and 18/19 to Saudi Arabia through their daily reporting system. Estimates ahead of Thursday’s Export Sales report are showing 0.7-1.1 MMT in old crop corn sales, with 100,000-250,000 MT in new crop sales. This week’s EIA report showed that 1.028 million barrels per day of ethanol was produced in the week that ended 5/18. That was a 30,000 bpd drop from the previous week. Stocks of ethanol grew to 22.129 million barrels, up 624,000 barrels from the week prior. China customs confirmed April sorghum imports from all origins totaled 640,000 MT, with the YTD at 2.33 MMT.

Jul 18 Corn closed at $4.08 1/2, up 3 3/4 cents,

Sep 18 Corn closed at $4.17 1/4, up 3 3/4 cents,

Dec 18 Corn closed at $4.26 1/2, up 3 1/4 cents

Mar 19 Corn closed at $4.34 1/4, up 3 cents

Soybeans

Soybean futures saw 8 to 9 1/2 cent gains in most contracts on Wednesday. Soymeal were up $3.20/ton, with front month soy oil 19 points higher. A report late on Wednesday showed that a Chinese importer purchased a cargo of US soybeans for shipment in August. The average trade guess for old crop soybean export sales is for net reductions of 200,000 to sales of 400,000 MT. That comes after the USDA earlier reported private exporters canceling a large chunk of old crop sales in the daily reporting system. New crop sales are seen at 200,000-400,000 MT. Soy meal sales are expected at 100,000-500,000 MT, with soy oil at 8,000-30,000 MT. Ports in Argentina will be shut down on Thursday due to a strike by workers demanding better conditions and wages.

Jul 18 Soybeans closed at $10.39 1/4, up 8 3/4 cents,

Aug 18 Soybeans closed at $10.43 1/4, up 9 cents,

Sep 18 Soybeans closed at $10.45, up 9 1/2 cents,

Jan 19 Soybeans closed at $10.52, up 9 1/2 cents,

Jul 18 Soybean Meal closed at $380.70, up $3.20,

Jul 18 Soybean Oil closed at $31.70, up $0.19

Wheat

Wheat futures posted gains of 9 to 11 1/4 cents in most contracts on Wednesday. Rains pushing their way through the Northern Plains are slowing any planting that is left in the area. The 6-10 day outlook shows warmer temperatures on the way for most of the Plains over the next week, providing a little support for the drought stressed HRW. Analysts are looking for net reductions of 100,000 MT to sales of 100,000 MT for old crop wheat export sales during the week of 5/17. New crop sales are expected to be in the range of 100,000-400,000 MT. That would be an improvement over last week’s total sales of 193,738 MT. Chinese customs data shows imports of wheat in April at 370,000 MT, bringing the YTD total to 1.01 MMT from all origins.

Jul 18 CBOT Wheat closed at $5.31, up 9 1/2 cents,

Jul 18 KCBT Wheat closed at $5.51 3/4, up 11 1/4 cents,

Jul 18 MGEX Wheat closed at $6.42, up 9 cents

Cattle

Live cattle futures close the Wednesday session with contracts $1.20 to $1.90 higher, as June was up 55 cents while waiting for cash market indications. Feeder cattle futures saw gains of $1.925 to $2.625, with soon to expire May up 95 cents. The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed on Wednesday afternoon. Choice boxes were up 73 cents at $230.08, with Select boxes 82 cents lower at $205.04. 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 April feedlot marketings at an average of 1.805 million head, which is 6% larger than the same month last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. None of the 225 head offered on FCE’s online auction were sold on Wednesday. A few low ball bids of $108 and $175 have been reported in NE so far on Wednesday, with no sales yet to report.

Jun 18 Cattle closed at $105.450, up $0.550,

Aug 18 Cattle closed at $102.800, up $2.150,

Oct 18 Cattle closed at $105.750, up $1.900,

May 18 Feeder Cattle closed at $134.900, up $0.950

Aug 18 Feeder Cattle closed at $143.350, up $2.625

Sep 18 Feeder Cattle closed at $143.300, up $2.500

Lean Hogs

Lean hog futures were 67.5 cents to $1.475 in the green on Wednesday, ignoring bearish Cold Storage stocks data. The CME Lean Hog Index was up 33 cents from the previous day to $68.69 on May 21. The USDA pork carcass cutout value was down $1.33 at $74.81 on Wednesday afternoon. The loin led the way, down $3.36, with the belly the only cut reported higher. The national base hog weighted average price was 4 cents lower at $64.73 in the afternoon. The USDA estimated 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.

Jun 18 Hogs closed at $74.600, up $1.475,

Jul 18 Hogs closed at $76.225, up $1.100

Aug 18 Hogs closed at $75.025, up $0.675

Cotton

Cotton futures finished the Wednesday session with mixed trade. Nearby July was down 39 points, with other contracts higher. The US dollar index is up 360 points on the day, causing a little pressure for July. The weekly Export Sales report will be released at 7:30 am CDT on Thursday. China sold another 30,000 MT of cotton offered at an auction of state reserves on Wednesday. The Cotlook A index was up another 145 points from the previous day to 95.90 cents/lb on May 22. The current AWP of 74.09 cents/lb will be updated on Thursday.

Jul 18 Cotton closed at 86.960, down 39 points,

Oct 18 Cotton closed at 85.210, up 1 point

Dec 18 Cotton closed at 84.050, up 21 points


Market Commentary provided by:

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