Ag Market Commentary
BRUG - Tue Mar 12, 7:29AM CDT

Corn futures are trading 1/4 to 1 1/4 higher this morning. They ended the Monday session with most contracts 1 to 2 1/4 cents lower. Preliminary open interest rose 9,995 contracts. USDA’s Export Inspections report showed 765,618 MT of corn shipped in the week of March 7. That was down 11.54% from the week prior and 44.41% below the same week in 2018. Shipments YTD are still 6.21 MMT (244 mbu) ahead of last year but the lead is shrinking. USDA trimmed their US average farm price range by a dime on Friday to $3.35-3.75, with the midpoint down a nickel to $3.55. USDA left their Brazil corn projection at 94.5 MMT on Friday, with CONAB updating their estimate later today.

--provided by Brugler Marketing & Management



Soybean futures are currently fractionally lower after seeing 5 to 6 cent losses in most front months on Monday. The market ignored a big Chinese purchase. Meal futures were down $2.40/ton in the nearby contract, with soy oil 1 point higher. Soybean exports in the week that ended on March 7 were tallied at 874,363 MT. That was slightly above last week but down 6% from this week last year. A total of 386,581 MT was shipped to China. CONAB will release their monthly Brazil production update later today, with USDA trimming their own projection to 116.5 MMT on Friday. Safras & Mercado estimates the Brazil soybean harvest was 52.1% complete as of March 8, compared to the 46.4% average.

--provided by Brugler Marketing & Management



Wheat futures are 2 to 4 cents higher this morning in all three US futures markets. They posted losses of 8 to 11 cents in most winter wheat contracts on Monday. This was net new selling, with Chicago preliminary open interest up 3,985 contracts. MPLS spring wheat was down 2 to 5 cents. The nearby HRS-HRW spread is the largest in over a year (Feb 2018) at $1.36 1/2 as snow cover and cold temps in the Northern Plains are causing doubts about spring wheat acres. All wheat export shipments during the week of March 7 totaled 592,001 MT, which was up 21.1% from the week prior and 38.06% larger than the same week last year. Egypt’s Supply Minister indicated that he wants origins of wheat imports diversified after rejecting a Romanian cargo on quality issues. French FOB prices were down ~1.3% on Monday, with the Matif futures a few ticks lower.

--provided by Brugler Marketing & Management



Live cattle futures closed Monday with most contracts steady to 70 cents lower. Feeder cattle futures were down 12.5 cents to $1.725. The CME feeder cattle index was down 74 cents on March 8 at $139.29. Wholesale boxed beef prices were higher in the Monday afternoon report, with the Ch/Se spread out to $7.73/cwt. Choice boxes were up $1.23 at $227.36, as Select was 85 cents higher @ $219.63. USDA estimated Monday’s FI cattle slaughter at 119,000 head, up 3,000 wk/wk and up 5,000 from last year. Cash cattle traded at $128-128.50 last week, with $205 in the North.

--provided by Brugler Marketing & Management



Lean Hog futures settled with $1.125 to $2.30 gains in most contracts on Monday. Short covering drove the rally, although open interest dropped only 749 contracts. April dropped 11,519 on index fund rolling to June. The CME Lean Hog Index was down 4 cents from the previous day @ $51.71 on March 7. The USDA pork carcass cutout value was up $1.38 on Monday afternoon at an average weighted price of $66.42. The national base hog carcass value was up $1.24 on Monday at an average weighted price of $47.20. Monday’s USDA estimated FI hog slaughter was at 475,000 head, 10,000 head larger than last Monday and 16,000 head above last year.

--provided by Brugler Marketing & Management



Cotton futures are anywhere from 1 to 37 points lower this morning, with sell pressure concentrated in the December and later new crop contracts. They saw losses of 19 to 29 points in the front months on Monday, with deferred contracts steady to 8 points higher. The Cotlook A Index was down 100 points on March 8 to 81.25 cents/lb. The USDA Adjusted World Price (AWP) was updated to 63.42 cents/ lb on Thursday, up 75 points. The certified stocks level dropped 5,449 bales on March 8 to 123,219 bales. As of March 7, USDA indicated that 16.644 million bales of upland cotton had been classed, with an additional 765,273 bales of Pima.

--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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