Ag Market Commentary
BRUG - Tue Jun 11, 7:28AM CDT

Corn futures are trading 4 to 5 cents lower this morning ahead of the WASDE report. Traders are having second thoughts about how much or IF USDA is likely to change their production estimate today. They settled steady to fractionally lower in the front months, with other contracts firm to 3 1/2 cents higher. After the close, NASS showed that 83% of the US corn crop was planted as of June 9, still lagging the 99% average. That was a 16% move from the previous week and in the range of estimates. Emergence was pegged at 62%, 31% below average. Initial corn ratings were at 59% gd/ex, with the Brugler500 index at 355. That was 35 points lower than last year and the worst first round of ratings since 1996. It also wasn’t exactly a surprise. Monday morning’s Export Inspections report indicated that 850,647 MT of corn was shipped in the week that ended on June 6. That was a 14.2% jump from the week prior but 39.7% slower than the same week in 2018. YTD inspections are now 2% behind the same time last year.

--provided by Brugler Marketing & Management



Soybean futures are 3 to 4 cents lower since ending the Monday session with most contracts 2 to 3 cents higher. The US stock market continues to rally, attracting trading capital. Soymeal was up $1.10/ton, with bean oil UNCH on the day. The USDA showed that 714,627 MT of US soybeans were shipped in the week of June 6, according to the Export Inspections report. That was 40% larger wk/wk and 5.77% above the same week last year. Of that total 402,854 MT was headed to China. The weekly Crop Progress report indicated that 60% of the US soybeans crop was planted by Sunday. That was still 28% behind normal, with 34% emerged vs the 73% average. Chinese customs data showed 7.36 MMT of soybeans imported in May, down 24.05% from last year. Much of the decline is due to the reduced need to hog feed.

--provided by Brugler Marketing & Management



Wheat futures are mostly 5 to 9 cents lower this morning. KC HRW is the weakest despite a slow harvest pace, due several factors including Russia’s reported decision to extend zero export taxes for two full years. Wheat saw 1 to 4 cent gains in most winter wheat contracts, with MPLS within a penny on either side of UNCH in the front months. Monday’s Crop Progress report showed that 83% of the US winter wheat crop was headed on June 9, 8% behind normal. Harvest was 4% complete, shy of estimates and the 10% average. Winter wheat condition ratings were UNCH at 64% good/ex, and 367 on the Brugler500 index. Spring wheat progress was 97% planted, with 85% emerged (vs, 93% avg). Spring wheat was rated 81% good/excellent, down 2% from last week, with the Brugler500 index @ 388. Weekly Export Inspections data showed 464,779 MMT of US wheat shipped in the week of June 6. That was down 21.62% from the previous week but 10.77% larger than the same week in 2018. Egypt’s GASC is tendering for wheat for Mid-July delivery with results due later today.

--provided by Brugler Marketing & Management



Live cattle futures posted strong $1.80 to $2.775 gains on Monday, with August limit up. There was some rolling from June to August, with June open interest dropping 2,719 on Monday (preliminary). Feeder cattle futures were up $1.875 to $2.625 on the day. The CME feeder cattle index was up 39 cents to $132.26 on June 7. Wholesale boxed beef prices were mixed on Monday afternoon. Choice boxes were down 65 cents at $221.66 with Select boxes $1.87 higher @ $208.79. USDA estimated Monday’s FI cattle slaughter @ 121,000 head. That is 3,000 head larger than the same day last year and steady from last week.

--provided by Brugler Marketing & Management



Lean Hog futures closed $1.60 to $2.725 higher in most contracts on Monday, with soon to expire June up 62.5 cents. The CME Lean Hog Index was down 26 cents from the previous day @ $80.30 on June 6. The CME Fresh Bacon Index was down $10 from the week previous on June 7 at $143.20. The USDA pork carcass cutout value was up 98 cents Monday afternoon at $84.06. The butt and belly were the only primals lower, both down 51 cents. The national average base hog was down 62 cents at $75.27 per hundred pounds. Estimated FI hog slaughter for Monday was 477,000 head. That is 10,000 head above last week and 33,000 head larger than the same Monday last year.

--provided by Brugler Marketing & Management



Cotton futures are trading 15 to 37 points lower this morning. They were up 6 to 40 points in most contracts on Monday, ignoring thinly traded Oct. The USDA weekly Crop Progress report showed US cotton planting advancing just 4% from last week to 75% complete. That is behind the average pace of 87%, with 11% squaring. Condition ratings were down 2% to 44% gd/ex, with the Brugler500 index down 9 points to 329. The Cotlook A index for June 7 was down 25 points from the previous day to 79.35 cents/lb. The weekly Average World Price (AWP) from USDA is now 61.51 cents/lb through next Thursday.

--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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