Ag Market Commentary

Corn futures are currently down 2 to 3 cents at midday. This week’s EIA report indicated that 1.058 million barrels per day of ethanol was produced in the week that ended 5/11. That was 18,000 bpd more than the previous week and the largest weekly production (and implied corn consumption) total since mid-February. Stocks of ethanol were reported at 21.505 million barrels, down 459,000 barrels from the previous week with both Coasts shrinking stocks. The news channels show little apparent progress on the NAFTA negotiations.

Jul 18 Corn is at $3.99 1/4, down 3 cents,

Sep 18 Corn is at $4.07 1/2, down 3 cents,

Dec 18 Corn is at $4.16 3/4, down 2 1/2 cents

Mar 19 Corn is at $4.25 1/4, down 2 cents

Soybean futures are mostly 13 to 17 1/2 cents in the red on Wednesday. Soy meal is down $5.40/ton, with front month soy oil 37 points lower. The 5 day QPF shows precipitation chances for rains this week with a majority of it in NE and IA and lighter totals in the ECB. Recent weakness in the Real vs. a stronger US dollar has cheapened Brazilian soybeans on the world market. China is in the US this week to try and come up with a solution on the recent trade issues.

Jul 18 Soybeans are at $10.01 1/4, down 17 1/2 cents,

Aug 18 Soybeans are at $10.05, down 17 cents,

Sep 18 Soybeans are at $10.07, down 15 3/4 cents,

Nov 18 Soybeans are at $10.11, down 13 3/4 cents,

Jul 18 Soybean Meal is at $376.90, down $5.40

Jul 18 Soybean Oil is at $30.75, down $0.37

Wheat futures are posting mixed trade on Wednesday. Spring wheat is showing some strength at midday, with CBT and KC fractionally mixed. Rains along the Northern Plains this week could potentially slow the already delayed spring wheat planting progress. While moisture in the Southern Plains could help the HRW crop. Taiwan purchased 83,350 MT of US wheat in a tender on Wednesday, with shipment in July/August.

Jul 18 CBOT Wheat is at $4.93, down 1/2 cent,

Jul 18 KCBT Wheat is at $5.10 1/4, up 1/2 cent,

Jul 18 MGEX Wheat is at $6.09 1/2, up 3 1/4 cents

Live cattle futures are trading 42.5 cents to $1.025 lower on Wednesday. Feeder cattle futures are down 12.5 cents to $1.05 at midday. The CME feeder cattle index was down 20 cents on May 14 at $135.92. Wholesale boxed beef values were lower on Wednesday morning. Choice boxes were down 65 cents at $230.99, with Select boxes 50 cents lower at $209.01. FI cattle slaughter was estimated at 236,000 head through Tuesday. That is down 2,000 head from last week but 3,000 head larger than the same week last year. A few early cash trades at $117 were reported across the Plains on Tuesday, with today’s FCE auction showing 0 sales on the 2,586 head offered.

Jun 18 Cattle are at $102.550, down $0.425,

Aug 18 Cattle are at $99.525, down $0.875,

Oct 18 Cattle are at $102.725, down $1.025,

May 18 Feeder Cattle are at $133.425, down $0.125

Aug 18 Feeder Cattle are at $137.450, down $1.000

Sep 18 Feeder Cattle are at $137.900, down $1.050

Lean hog futures are currently mixed with most front months steady to $1 higher. The CME Lean Hog Index was up 58 cents from the previous day to $65.23 on May 14 and continues to rise seasonally. The USDA pork carcass cutout value was down 7 cents at $74.17 on Wednesday morning. The loin was down $3.52. The national base hog weighted average price was 12 cents lower at $64.36 this morning. The USDA estimated FI hog slaughter at 920,000 head through Tuesday. That is 7,000 head more than last week and 39,000 above the same week in 2017.

Jun 18 Hogs are at $75.700, up $0.975,

Jul 18 Hogs are at $78.100, up $0.400

Aug 18 Hogs are at $77.475, up $0.025

Cotton futures are showing strong 66 to 176 point gains on Wednesday. The Cotlook A index was up 1 cent from the previous day to 92.1 cents/lb on May 15. Much of the main cotton growing area in TX missed out on hoped for rains Tuesday evening. The USDA Adjusted World Price for this week is 75.58 cents/lb and will be updated tomorrow afternoon. China sold 25,652 MT of cotton from state reserves on Wednesday, totaling 85.47% of the offered amount.

Jul 18 Cotton is at 84.42, up 66 points,

Oct 18 Cotton is at 83.1, up 176 points

Dec 18 Cotton is at 80.86, up 75 points

Mar 19 Cotton is at 80.730, up 82 points

Market Commentary provided by:

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