Ag Market Commentary

Corn futures are mostly 1 to 2 cents lower on Wednesday. The weekly EIA report showed 1.034 million barrels per day of ethanol was produced during the week of 4/6. That was down 4,000 bpd from the previous week. On a bullish note, ethanol stocks dropped 579,000 barrels to the lowest level since early November at 21.846 million barrels. In Tuesday’s monthly supply and demand report, the USDA trimmed the average farm price range by 10 cents to $3.20-3.50, with the midpoint remaining at $3.35. Analysts are expecting the USDA to show 0.9-1.4 MMT of old crop export sales during the week of 4/5 in Thursday’s Export Sales report, with new crop at 0-300,000 MT.

May 18 Corn is at $3.88 1/4, down 1 cent,

Jul 18 Corn is at $3.96 3/4, down 1 cent,

Sep 18 Corn is at $4.04, down 3/4 cent

Dec 18 Corn is at $4.12 1/2, down 1 1/2 cents

Soybean futures are trading 5 to 6 cents higher in the front months at midday. Soy meal is down 20 cents/ton, with front month soy oil down 30 points. The USDA reported private export sales under the daily reporting system this morning. Those included another 120,000 MT to Argentina and 141,518 MT to Mexico for 18/19 delivery. On Tuesday, the USDA cut the average farm price for soybeans by 20 cents to $9.10-$9.50, as they left the midpoint at $9.30. The average trade guess for old crop soybean export sales ahead of Thursday is 0.9-1.4 MMT, with 400,000-600,000 MT seen for new crop. Soy meal sales are expected at 150,000-450,000 MT, as traders estimate 20,000-45,000 MT for soy oil.

May 18 Soybeans are at $10.55 1/4, up 5 1/4 cents,

Jul 18 Soybeans are at $10.66, up 5 3/4 cents,

Aug 18 Soybeans are at $10.67, up 5 3/4 cents,

Sep 18 Soybeans are at $10.58, up 5 1/2 cents,

May 18 Soybean Meal is at $383.70, down $0.20

May 18 Soybean Oil is at $31.55, down $0.30

Wheat futures are currently 1 to 3 cents lower in the winter wheat contracts, with HRS 4 to 5 cents higher in the front months. The 6-10 day forecast is calling for colder than normal temps in the North, possibly delaying spring wheat planting. Warmer than normal temps are expected in the western parts of OK and TX. Wheat export sales for the week that ended 4/5 are expected to be 150,000-350,000 MT, with 100,000-300,000 MT seen for new crop. With the addition to the projected world ending stocks number yesterday, the USDA now sees a 6.53% jump in world carryover from 16/17. At the same time ending stocks in the US are estimated to be down 9.91%.

May 18 CBOT Wheat is at $4.90 1/4, down 1 3/4 cents,

May 18 KCBT Wheat is at $5.18 1/4, down 3 cents,

May 18 MGEX Wheat is at $6.31 1/4, up 4 3/4 cents

Live cattle futures are showing slight gains of 15 to 50 cents at midday. Feeder cattle futures are up 20 to 55 cents at the moment. The CME feeder cattle index was up 32 cents on April 9 at $134.81. Wholesale boxed beef values were mixed on Wednesday morning. Choice boxes were 28 cents higher at $213.79, with Select boxes down 72 cents at $200.61. The Ch/Se spread has now widened to $13.18. Estimated FI cattle slaughter was at 237,000 head through Tuesday. That is 16,000 above the previous week and up 11,000 head from the same week in 2017. The FCE online auction saw just 509 head sold of the 3,931 offered. The average price for 1-9 day delivery was $117.71, with 17-30 day delivery at $114.

Apr 18 Cattle are at $113.300, up $0.500,

Jun 18 Cattle are at $102.250, up $0.150,

Aug 18 Cattle are at $102.500, up $0.200,

Apr 18 Feeder Cattle are at $135.375, up $0.550

May 18 Feeder Cattle are at $135.600, up $0.325

Aug 18 Feeder Cattle are at $140.825, up $0.200

Lean hog futures are mostly higher on Wednesday, as nearby April is down 12.5 cents The CME Lean Hog Index was down 52 cents from the previous day on April 9 to $53.50. The USDA pork carcass cutout value was down a 68 cents at $65.89 on Wednesday morning. The ham was the only cut reported higher. The national base hog weighted average price was 29 cents lower at $46.26. The USDA estimated FI hog slaughter at 901,000 head through Tuesday. That is up 23,000 head from the same point last year.

Apr 18 Hogs are at $53.375, down $0.125,

May 18 Hogs are at $67.625, up $0.175

Jun 18 Hogs are at $76.000, up $0.950

Cotton futures are currently 7 to 19 points higher on Wednesday. If the increase in projected US cotton exports to 15 million bales is realized, 17/18 exports would be the largest since 05/06. The Cotlook A index was up 35 points on April 10 to 92.40 cents/lb. The USDA Adjusted World Price (AWP), currently 72.03 cents/lb through Thursday, will be updated tomorrow. There were sales of 7,433 bales at an average price of 74.44 cents/lb sold on the Seam on Tuesday. A Chinese auction of state reserves saw 13,600 MT of cotton sold, which was 45.27% of the total offered.

May 18 Cotton is at 83.72, up 19 points,

Jul 18 Cotton is at 83.34, up 17 points

Dec 18 Cotton is at 78.450, up 7 points

Market Commentary provided by:

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