Ag Market Commentary

Corn futures are 2 to 4 cents higher to start the Friday session, thanks to a little pre-weekend profit taking. The front months May and July ended lower yesterday, while Sept and Dec futures were higher. Weekly corn export sales totaled 1.075 MMT. Exports through week 30 of the marketing year were 720.7 mbu. Census data showed February corn exports were 154.17 mbu. That was a 57% increase over January exports and 8.3% higher yr/yr. DDGS exports in Feb totaled 852,904 MT which was 24.4% higher yr/yr. Census data also showed ethanol exports totaled 194.2 million gallons during February, which was the second highest all time for the month. Argentina is 22.2% harvested through April 1st; the Buenos Aires Grain Exchange forecasts 50 MMT of production.

--- provided by Brugler Marketing & Management



Overnight trading has May beans UNCH, but other contracts are as much as 2 cents higher this morning. Bean futures closed with losses of as much as 4 cents on Thursday. Open interest is rising, with new money coming into the market after the first of the month. Soymeal futures were down by $5.80/ton in May. Bean oil futures closed 19 points higher. Soybean bookings from the Export Sales update were 957,417 MT for the week. China purchased 7.7% of the week’s sales. Soymeal sales were 125,158 MT, which is down 35% yr/yr. Bean oil sales were a MY high of 66,967 MT. Official soybean exports for the month of Feb were 101.37 mbu, down 4.5% from January but 10.17% higher yr/yr. February soymeal exports per Census data were a record for the month @ 1.259 MMT. Soybean oil exports for Feb were the largest since May 2018 (highest Feb since 2010). The BA Grain Exchange lowered their forecast for Argentine soybeans to 49.5 MMT citing lower than expected yields.

--- provided by Brugler Marketing & Management



After closing lower on Thursday, wheat is trading 5 to 10 cents higher this morning. KC wheat was the weakest on Thursday, losing 11 cents. May SRW wheat closed 8 1/2 cents lower. MPLS May futures were down by 5 1/2 cents at the close. Wheat export bookings from USDA marketing week 43 were only 72,900 MT (2.679 mbu). The week’s exports were also slow (3rd lowest on the MY) as only 10.05 mbu were shipped. The accumulated wheat exports through March 26 were 72.7% of the March WASDE forecast. CENSUS data from February showed that US wheat exports were 80.25 mbu, which was 17% above Jan but down 3% from February 2019.

--- provided by Brugler Marketing & Management



Cattle futures closed the expanded limits lower on Thursday. April options expire today, with a huge range of pin candidates in play. Feeder futures were down the expanded limits of $6.75 on Thursday. The April 1 CME Feeder Cattle Index was $126.09, down by $3.73. There were no cash trades reported on Thursday, this week’s cash market has had limited activity around $112 - $113. Beef sales for the week ending March 26 were 18,231 MT. Accumulated beef exports total 210,579 MT through the first 13 week’s which was 28.9% ahead of last year’s pace. February beef exports from Census were 257 million lbs, which was a record for Feb, and 4.9% above Jan shipments. Afternoon boxed beef prices were lower again on Thursday. Choice boxes were down by $2.53 to $232.64 cwt. and Select boxes were $222.12 cwt., down by $3.01. Federally Inspected cattle slaughter through Thursday was estimated at 467,000 head. That was 17,000 head behind last week and 15,000 head behind the same week last year.

--- provided by Brugler Marketing & Management



Lean hog futures maintain the expanded limits of $4.50 for Friday, after closing limit down yesterday. The March 31 CME Lean Hog Index was 69 cents lower to $64.46. The 04/02 National Average Afternoon Base Hog price was $44.61, which was $3.76 lower. USDA’s weekly Export Sales report showed 38,152 MT of pork bookings for the week ending March 26. Of the week’s sales, 49.6% were to China. Monthly pork shipments were 658.2 million lbs in Feb. Each of the last 9 months were a respective monthly record, with December shipments the all-time high for any month. The Pork Carcass Cutout Value was $2.84 lower on Thursday at $59.21 cwt. USDA estimated FI hog slaughter for the week through Thursday at 1.948 million head. That was 42,000 head below last week’s pace.

--- provided by Brugler Marketing & Management



Cotton is trading 63 to 73 points higher this morning after also having closed higher on Thursday. The dollar is stronger, and equity futures are modestly lower. Yesterday, May cotton was the strongest with a 158 point move; Oct and Dec gained 71 points. The Export Sales report from USDA showed 147,535 RBs of cotton bookings. That was down 47% wk/wk and was 54% lower yr/yr. The report showed 8.627 million RBs shipped through the first 35 weeks of the MY. That is 20.8% above last year’s pace. Of the total exports reported, 12% were to China, compared to last year when the nation accounted for 10.3% of the total. Census data for February cotton exports totaled 1.97 million (480-lb) bales. That was 32.7% above Feb ’19. The Cotlook A index was up 60 points to 61.50 cents per pound on April 1st. The AWP for cotton was lowered 236 points to 42.63 cents/lb. The LDP increased to 9.37 cents/lb, and both are in effect through next Thursday.

--- provided by Brugler Marketing & Management






Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

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