Ag Market Commentary

Corn futures are fractionally to a penny lower at midday. The USDA Export Sales report indicated that 985,702 MT of old crop corn was sold in the week of May 10. That was near the top of the range of expectations and nearly 3.5 times as large as this time last year. Japan bought nearly 401,500 MT, with 154,500 MT switched from unknown destinations. New crop sales totaled 129,240 MT. China sold 1.427 MMT of 2014 and 2015 corn from state reserves on Friday, totaling 80.48% of the totaled offered.

Jul 18 Corn is at $3.98 1/2, down 3/4 cent,

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

Dec 18 Corn is at $4.16 1/2, down 1/2 cent

Mar 19 Corn is at $4.24 1/2, down 1 cent

Soybean futures are steady in the back months to 2 1/4 cents lower in the nearby contracts. Soy meal is down $1.40/ton, with front month soy oil up 57 points. The USDA reported a private export sale of 132,000 MT to unknown destinations this morning. Export sales of old crop soybeans in the week that ended 5/10 totaled 281,850 MT, just short of analysts’ estimates. That was down 20.4% from last week and 12.9% lower than this week in 2017. Unknown destinations reported 224,500 MT in reduction, as a majority was switched to a destinations. New crop sales were tallied at 224,650 MT. Soy meal sales were reported at 375,960 MT for 17/18 and 45,666 MT for 18/19. Sales of soy oil were shown at 10,185 MT.

Jul 18 Soybeans are at $9.97 1/2, down 2 1/4 cents,

Aug 18 Soybeans are at $10.01 1/2, down 1 3/4 cents,

Sep 18 Soybeans are at $10.04, down 1 3/4 cents,

Nov 18 Soybeans are at $10.08 1/2, down 1/2 cent,

Jul 18 Soybean Meal is at $375.20, down $1.40

Jul 18 Soybean Oil is at $31.16, up $0.57

Wheat futures are mostly 6 to 8 cents higher in the CBT and KC contracts on Thursday. MPLS is up 2 to 4 1/4 cents. Dry conditions during Australian planting are supportive, and there are some concerns about the Russian crop at least not being record large. US old crop export sales during the week of May 10 totaled just 63,057 MT, on the low side of estimates. Reductions of 143,000 MT were shown for unknown destinations, switched mainly to Yemen, Iraq, and Ecuador. Export sales of new crop wheat were tallied at 131,681 MT. Japan purchased 89,937 MT of wheat from Australia, Canada and the US in their weekly MOA tender, with 33,992 MT from the US.

Jul 18 CBOT Wheat is at $5.01 1/2, up 7 1/4 cents,

Jul 18 KCBT Wheat is at $5.22, up 8 cents,

Jul 18 MGEX Wheat is at $6.15 1/2, up 4 1/4 cents

Live cattle futures are showing 25 cent to $1.475 gains at midday. Feeder cattle futures are up 37.5 cents to $1.575. The CME feeder cattle index was down 25 cents on May 15 at $135.67. Wholesale boxed beef values were higher on Thursday morning. Choice boxes were up $1.40 at $232.43, with Select boxes 29 cents higher at $208.79. Week to date FI cattle slaughter was estimated at 354,000 head through Wednesday. That is down 2,000 head from last week but 5,000 head larger than the same week last year. Light cash trade of $114 has been reported this morning, down from yesterday’s $115-116. Beef export sales were shown at 10,962 MT in the week of 5/10, 44.9% larger than this week last year.

Jun 18 Cattle are at $103.300, up $1.475,

Aug 18 Cattle are at $99.350, up $0.300,

Oct 18 Cattle are at $102.575, up $0.275,

May 18 Feeder Cattle are at $133.100, up $0.375

Aug 18 Feeder Cattle are at $138.300, up $1.575

Sep 18 Feeder Cattle are at $138.650, up $1.275

Lean hog futures are mixed at midday, with nearby June up 45 cents and back months lower. The CME Lean Hog Index was up 91 cents from the previous day to $66.14 on May 15 and continues to rise seasonally. The USDA pork carcass cutout value was up $1.32 at $75.71 on Thursday morning. The loin was up $4.22, with the picnic $2.41 higher and belly up $2.20. The national base hog weighted average price was 30 cents higher at $64.80 this morning. The USDA estimated FI hog slaughter at 1.38 million head through Wednesday. That is 6,000 head more than last week and 60,000 above the same week in 2017. The USDA reported 21,934 MT in pork export sales during the week of 5/10. That was 40.4% larger than last year, and a 32.7% jump from a week ago.

Jun 18 Hogs are at $76.350, up $0.450,

Jul 18 Hogs are at $78.000, down $0.725

Aug 18 Hogs are at $77.400, down $0.450

Cotton futures are currently 50 to 90 points higher on Thursday. This morning’s Export Sales report showed 153,270 RB in old crop sales for the week that ended May 10, close to trade estimates. That was down 20.61% from last week but 26.97% larger than the same week a year ago. New crop sales were reported at 229,335 RB. The Cotlook A index was down 5 points from the previous day to 92.05 cents/lb on May 16. The USDA Adjusted World Price for this week is 75.58 cents/lb and will be updated this afternoon.

Jul 18 Cotton is at 85.25, up 90 points,

Oct 18 Cotton is at 82.9, up 50 points

Dec 18 Cotton is at 81.55, up 86 points

Mar 19 Cotton is at 81.470, up 98 points

Market Commentary provided by:

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