AgriCharts Market Commentary

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.

Corn Market Higher Overnight on Poor Condition Ratings

Corn futures are trading 4 to 5 cents higher this morning. They settled mostly 2 to 4 3/4 cents higher on Monday. There was some net new buying, with preliminary open interest up 4,744 contracts. Weekly Export Inspections were down 8.9% from last week and less than half of the same week last year. On the other hand, 109,914 MT of sorghum was shipped to China. After the Monday close, NASS reported that 96% of the US corn crop has been planted, a little less than expected. Crop condition ratings declined, with 56% of the crop rated good or excellent. The Brugler500 index dropped 5 points to 349. It was 390 last year. It was 355 this week in 1993, which some are using as a weather analog year. --provided by Brugler Marketing & Management

Soybean Market Extends Monday Gain Overnight

Soybean futures are 4 to 6 cents per bushel higher here on Tuesday morning. Soybean futures settled 5 to 6 1/4 cents higher on Monday. Some short covering was noted, with soybean preliminary open interest dropping 17,430 contracts. A total of 682,155 MT of US soybeans were exported in the week that ended 6/20. Those inspections were 32.02% larger than the same week in 2018. Of that total, 529,638 MT (77.64%) were headed to China. Trade ideas for soybean planting progress were in the 86-89% range. USDA calculated 85% of intended acreage is planted vs. the 5-year average of 97% for this date. The initial crop condition ratings showed 54% good or excellent, with the Brugler500 index (which weights all five condition categories) at 349. That was the lowest index value for this week since 2012. --provided by Brugler Marketing & Management

Wheat Higher in All Three US Markets

The three wheat markets are 6 to 7 cents per bushel higher this morning. Wheat futures were up 7 1/2 to 13 cents per bushel yesterday. KC HRW was the strongest, with MPLS exhibiting the most single digit gains. The weekly Export Inspections report indicated that 406,386 MT of wheat was shipped in the week of June 20. That was a 6.28% rise from last week and 11.54% larger than the same week in 2018. USDA crop condition ratings declined vs. last week for both winter wheat and spring wheat, with the latter 75% good or excellent vs. 77% a week earlier. Maturity continues to lag, with winter wheat 94% heading vs. 99% average, and spring wheat 7% vs. 29%. Winter wheat harvesting is 15% completed vs the 34% average for this week. Taiwanese importers purchased 83,200 MT of wheat from the US on Monday. --provided by Brugler Marketing & Management

Cattle Market Battles Back to Mixed Trade

Live cattle futures closed -47 to +37 cents on Monday. Feeder cattle futures were $1.70 to $2.45 lower with the added influence of higher feed prices. Friday afternoon’s Cattle on Feed report indicated June 1 on feed numbers up 1.62% from last year at 11.74 million head. That was the largest June 1 inventory since 1996. However, beef inventories in Cold Storage continue to decline, meaning disappearance is outstripping production. The CME feeder cattle index was down 2 cents @ $131.41 on June 21. Wholesale boxed beef prices were mixed on Monday. Choice boxes were down 8 cents at $219.74 with Select boxes 26 cents higher @ $199.81. USDA estimated Monday FI cattle slaughter was 121,000. That was 1,000 head larger than last Monday and 5,000 head more than the same Monday a year ago. --provided by Brugler Marketing & Management

Lean Hogs Still Sorting Out Supply & Demand Trends

Lean Hog futures were down $1.47 to $3.67 on Monday. The CME Lean Hog Index was down 41 cents from the previous day @ $79.14 on June 20. The CME Fresh Bacon Index was down $1.93 in the week that ended on June 21 to $137.73/cwt. The USDA pork carcass cutout value was up 60 cents $77.33. The national average base hog price was down $0.34 on Monday afternoon at $73.51 per hundred pounds. Estimated Monday FI hog slaughter was 448,000 head. That was down 19,000 from the previous week but 14,000 more than the same Monday in 2018. Chinese pork imports from all origins during May totaled 187,459 MT, the largest monthly total since August 2016. --provided by Brugler Marketing & Management

Cotton Market Up 17 to 31 Points Overnight

Cotton futures are trading 17 to 31 points higher this morning. They were 5 to 111 points higher on Monday, with nearby July recovering a portion of the massive losses seen last week. President’s Trump and Xi are expected to meet in private session during the G-20 meeting in Japan June 28-29. The Cotlook A index for June 20 was down 105 points from the previous day to 76.85 cents/lb. The weekly Average World Price (AWP) from USDA is 59.14 cents/lb through Thursday. NASS indicated that cotton planting is wrapping up, with 96% completed as of Sunday vs. the 98% average pace. Missouri is the notable laggard. Boll set is at 3%, just a little behind the 5% average pace. Most of that is in Arizona. Crop condition rating dropped 1 point on the Brugler500 Index due to more crop shifting into the poor category than improved to good. --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