Ag Market Commentary

Corn futures closed the Wednesday session with fractional gains in most contracts. The USDA reported a private export sale of 123,000 MT of 17/18 corn to Unknown Destinations through their daily reporting system this morning. The weekly EIA report showed that US ethanol plants produced 1.016 million barrels of ethanol per day during the week of Feb 9. That was down 41,000 bpd from the previous week. Stocks of ethanol fell 604,000 barrels during that week to 22.885 million barrels. Analysts estimates for Thursday’s USDA Export Sales report are running 1 – 1.5 MMT for old crop sales during the week of Feb 8, with 0-100,000 MT seen for new crop.

Mar 18 Corn closed at $3.67 1/4, up 1/2 cent,

May 18 Corn closed at $3.74 3/4, up 1/2 cent,

Jul 18 Corn closed at $3.82 1/2, up 1/2 cent

Sep 18 Corn closed at $3.88 3/4, up 1/4 cent

Soybean futures finished the day with most front months steady to 5 1/2 cents in the green. Meal futures were up $4.70/ton, with nearby soy oil 23 points higher. The CME group hiked meal margin requirements from $1000 to $1200. Analysts are expecting Thursday’s NOPA report to show 165.511 mbu of soybeans were crushed during January. Soy oil stocks at the end of January are seen at 1.603 billion pounds, which would be above December but below last January. The USDA is expected to show 450,000-750,000 MT in old crop soybean export sales in Thursday’s report, with 0-100,000 MT for new crop. There is also 150,000-450,000 MT seen for soy meal sales and 10,000-30,000 MT expected for sales of soy oil.

Mar 18 Soybeans closed at $10.17 1/4, up 5 1/2 cents,

May 18 Soybeans closed at $10.27 3/4, up 5 1/2 cents,

Jul 18 Soybeans closed at $10.37 1/2, up 5 1/2 cents,

Sep 18 Soybeans closed at $10.27 1/4, up 3 1/2 cents,

Mar 18 Soybean Meal closed at $369.90, up $4.70,

Mar 18 Soybean Oil closed at $31.80, up $0.23

Wheat futures ended Wednesday with most CBT and KC contracts 4 to 5 cents lower. MPLS was mostly steady to 2 1/4 cents in the red. The CME Group raised margin requirements for KC HRW by $150 and increased margins for CBT wheat by $50. The average trade guess for Thursday’s Export Sales report is for all wheat sales to total 200,000-450,000 MT for the week that ended Feb 8. The US isn’t the only one have trouble exporting. France AgriMer cut projected 2017/18 French exports and raised projected soft wheat carryover to 3.25 MMT today from 2.9 MMT.

Mar 18 CBOT Wheat closed at $4.55 3/4, down 5 cents,

Mar 18 KCBT Wheat closed at $4.69 3/4, down 4 3/4 cents,

Mar 18 MGEX Wheat closed at $6.00 1/4, down 1 1/2 cents

Live cattle futures settled the Wednesday with 17.5 to 82.5 cent gains. Feeder cattle futures were up 30 to 92.5 cents. The CME feeder cattle index was up cents on February 13 at $147.62. Wholesale boxed beef values were higher on Wednesday afternoon. Choice boxes were up 45 cents at $207.81, with Select boxes 38 cents higher at $203.51. Estimated weekly FI cattle slaughter was 342,000 head through Wednesday. That was down 4,000 from the previous week but 2,000 head more than the same week last year. Cash cattle trade has yet to develop for the week, as this morning’s FCE online auction saw no sale on the 255 head offered. There was one lot that passed on an offer of $124.

Feb 18 Cattle closed at $127.650, up $0.825,

Apr 18 Cattle closed at $125.225, up $0.450,

Jun 18 Cattle closed at $117.050, up $0.400,

Mar 18 Feeder Cattle closed at $148.175, up $0.900

Apr 18 Feeder Cattle closed at $150.425, up $0.925

May 18 Feeder Cattle closed at $151.100, up $0.775

Lean hog futures posted 60 cent to $1.30 gains on Wednesday. The CME Lean Hog Index on February 12 was $74.30, down 42 cents from the previous day. The USDA pork carcass cutout value was 2 cents higher at $77.52 in the Wednesday PM report. The loin and ham were the only cuts reported lower. The national base hog weighted average price was down 88 cents at $66.85 Wednesday afternoon. The USDA estimated week to date FI hog slaughter at 1,388,000 through Wednesday. That is down 5,000 head from the previous week but 87,000 head more than the same time last year.

Feb 18 Hogs closed at $73.500, up $0.150,

Apr 18 Hogs closed at $70.650, up $1.225

May 18 Hogs closed at $76.425, up $1.300

Cotton futures were 22 to 78 points lower on Wednesday, despite another round of sharp losses in the US dollar. The weekly Export Sales report will be released on Thursday, with upland cotton sales expected to be lower than last week’s 402,400 RB. The USDA Adjusted World Price or AWP currently at 69.45 cents/lb will be updated on Thursday. The Cotlook A index on February 13 was 87.35 cents/lb, down 20 points from the previous day. Cash sales reported on the Seam were shown at 6,295 bales on Tuesday, with the average price down 190 points from the previous day at 67.11 cents/lb.

Mar 18 Cotton closed at 75.600, down 78 points,

May 18 Cotton closed at 76.970, down 43 points

Jul 18 Cotton closed at 78.000, down 42 points

Market Commentary provided by:

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