Ag Market Commentary

Corn futures are trading 1 to 2 1/4 cents higher in most contracts on Wednesday, despite weak ethanol data this morning. Support is from the lower dollar and slightly higher ethanol, which is following crude. This morning’s weekly EIA report indicated ethanol production in the week of January 4 dropping another 11,000 barrels per day to 1 million bpd. That is the lowest production total since April 20 of last year. Stocks were up for the second week in a row, this time by 92,000 barrels to 23.254 million barrels. The Gulf and West Coast were the only regions to show reductions.

Mar 19 Corn is at $3.82, up 2 cents,

May 19 Corn is at $3.90 1/4, up 2 1/4 cents,

Jul 19 Corn is at $3.98, up 2 1/4 cents

Sep 19 Corn is at $4.00 1/4, up 1 3/4 cents

--provided by Brugler Marketing & Management



Soybean futures are posting 5 to 6 cent gains in most contracts on Wednesday, after US/China trade talks concluded. Soymeal futures are up $1.30/ton, with soy oil 18 points higher. Following the 3-day meeting between US and China, a US trade representative stated one of the focuses was China’s pledge to buy a substantial amount of US goods. That is a follow up from earlier talks, with still few details on what, when, and how much will be purchased. With the government shutdown still ongoing, Export Sales data will not be released on Thursday morning.

Jan 19 Soybeans are at $9.12 1/4, up 6 cents,

Mar 19 Soybeans are at $9.24 1/4, up 5 3/4 cents,

May 19 Soybeans are at $9.37 1/2, up 5 3/4 cents,

Jul 19 Soybeans are at $9.49 1/4, up 5 3/4 cents,

Jan 19 Soybean Meal is at $318.90, up $1.30

Jan 19 Soybean Oil is at $28.36, up $0.18

--provided by Brugler Marketing & Management



Wheat futures are trading 4 to 6 1/2 cents higher on Wednesday, with international business active so far this week. Taiwan bought 111,650 MT of US wheat in their recent tender on Wednesday. Egypt’s GASC is tendering for wheat, with results expected today. US presented the lowest FOB offer, but that is before freight costs are accounted for. Algeria purchased 550,000 MT of optional origin wheat in a tender that closed on Tuesday. French 18/19 exports outside of the EU are now projected at 8.7 MMT by FranceAgriMer, down 0.1 MMT from last month.

Mar 19 CBOT Wheat is at $5.23, up 5 1/4 cents,

Mar 19 KCBT Wheat is at $5.09, up 4 cents,

Mar 19 MGEX Wheat is at $5.73 3/4, up 6 1/2 cents

--provided by Brugler Marketing & Management



Live cattle futures are steady to 25 cents lower in the front months on Wednesday. Feeder cattle futures are also 25 to 75 cents in negative territory. The CME feeder cattle index was down 43 cents on January 7 at $145.63. Wholesale boxed beef prices were lower on Wednesday morning. Choice boxes were down 37 cents at $213.61, with Select $1.05 lower at $206.21. USDA estimated WTD FI cattle slaughter at 237,000 head. That was 2,000 head above the same week last year. The FCE saw no sales on the 571 head offered online on Wednesday, with feedlots asking $125.

Feb 19 Cattle are at $125.050, down $0.250,

Apr 19 Cattle are at $125.975, down $0.175,

Jun 19 Cattle are at $117.450, down $0.025,

Jan 19 Feeder Cattle are at $147.100, down $0.525

Mar 19 Feeder Cattle are at $145.125, down $0.325

Apr 19 Feeder Cattle are at $145.575, down $0.525

--provided by Brugler Marketing & Management



Lean Hog futures are mostly 80 cents to $1.40 higher at midday. The CME Lean Hog Index was up 35 cents from the previous day @ $54.85 on January 7. The USDA pork carcass cutout value was down 3 cents on Wednesday morning at an average weighted price of $70.13. The national base cash hog carcass value was 28 cents higher in the AM report, with a weighted average of $50.45. This week’s FI hog slaughter through Tuesday was estimated at 960,000 head, which was 48,000 head larger than the same week last year.

Feb 19 Hogs are at $63.575, up $0.975,

Apr 19 Hogs are at $67.200, up $1.175

May 19 Hogs are at $73.900, up $0.950

--provided by Brugler Marketing & Management



Cotton futures are posting strong 150 to 180 point gains in most contracts on Wednesday. Higher crude oil prices and a weaker dollar are supportive. Some of the focus in the recent US/China trade talks was over China’s pledge to buy a substantial amount of US goods. At the moment, we have little way of gauging current export demand with the government shutdown keeping the Export Sales reports from being released. The Cotlook A index was up 40 points from the previous day on January 8 at 81.90 cents/lb.

Mar 19 Cotton is at 73.47, up 180 points,

May 19 Cotton is at 74.77, up 170 points

Jul 19 Cotton is at 75.9, up 150 points

--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
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

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