AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are trading fractionally higher this morning. They saw 1 to 3 cent gains in most contracts on Friday, with May up 2.47% on the week. Preliminary open interest rose 7,669 contracts on Friday. Midwest flooding is further delaying the likely start of planting and to a few traders potentially increasing prevented planting. It is still very early, however. Friday afternoon’s CFTC Commitment of Traders report showed managed money with a record reported net short position in corn futures and options of 257,965 contracts on March 12. That was an addition of 81,188 contracts from the previous week. Total US export commitments are down 6.3% from a year ago, when importers were buying in anticipation of a smaller South American crop. Commitments are now 68% of the newly updated US export projection, vs. the average of 76%.

--provided by Brugler Marketing & Management

Soybean Market News and Commentary

Soybean futures are mostly 1 cent per bushel lower this morning. They posted 9 to 10 3/4 cent gains in the front months on Friday on short covering. May was up 1.51% for the week. Meal futures were up $4.90/ton on Friday with soy oil 14 points lower. Spec funds added 39,895 contracts to their net short position in the week of 3/12, with the net position at -90,197 contracts on that date. Year to date soybean commitments are 81% of the USDA export projection, as the 5-year average is 92% and last year was 87%. NOPA’s February crush was 154.498 mbu, a record for the month. Member soy oil stocks were larger than expected at 1.752 billion pounds. Heavy rains have slowed the Brazilian harvest in Parana state (Brazil) but the country as a whole is still further advanced than average for this date.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are currently 1 to 3 cents lower in the KC and Chicago contracts. Minneapolis spring wheat is fractionally mixed. They ended the Friday session with most winter wheat contracts 6 1/2 to 9 1/2 cents higher. MPLS was steady to 3 cents higher. May CBT was up 5.18% last week, with KC 2.84% higher and MPLS up 1%. CFTC data showed KC wheat specs expanding their record reported net short position to -49,286 contracts in the week of 3/12. Even with the lower sales total last week, export commitments are now 3% above a year ago. They are 87% of the USDA projected total with the 5-year average pace at 97%.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures closed Friday with 77.5 cent to $1.70 gains in most contracts. Feeder cattle futures were up 22.5 cents to $2.275 on the day. The CME feeder cattle index was down 74 cents on March 14 at $137.65. Wholesale boxed beef prices were lower in the Friday afternoon report, with the Ch/Se spread at $9.65/cwt. Choice boxes were down 71 cents at $226.99, as Select was $1.42 lower @ $217.34. USDA estimated weekly FI cattle slaughter at 593,000 head. That was down 10,000 head from the previous week due to transportation issues. Cash cattle traded $127 across most regions last week, with carcass based also $1 lower at $203-205.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures posted limit up trade on Friday in all contracts out to April 2020. Nearby April was up 13.63% on the week, extending the premium to cash. April was fueled by short covering, but preliminary open interest for Friday rose 5,456 contracts for hogs overall to confirm new buying interest. The CME Lean Hog Index was up $1.01 from the previous day @ $54.13 on March 13. The USDA pork carcass cutout value was up 9 cents on Friday afternoon at an average weighted price of $68.89. The national base hog carcass value was up $2.67 in the PM report at an average weighted price of $54.20. USDA estimated the weekly FI hog slaughter was 2.452 million head, down 83,000 from the previous week but 34,000 head above last year. China’s Ag Ministry data shows the country’s hog herd down 16.6% from a year ago in February, with the sow numbers down 19.1%. The US also intercepted more than 1 million pounds of Chinese pork being illegally smuggled into the US. No word yet on whether it was contaminated with the highly contagious ASF virus.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are 16 to 40 points higher to begin the week. They were 73 to 120 points higher in the front months on Friday, as May posted a 2.74% gain for the week. A weaker US dollar index was supportive (also weaker on Monday morning in overseas trade). The Cotlook A Index was up 95 points on March 14 to 84.30 cents/lb. The USDA Adjusted World Price (AWP) was updated to 64.10 cents/ lb on Thursday, up 68 points from the week prior. Export Commitments for 18/19 upland cotton are now 11.8% below a year ago as sales have been lagging. They are 88% of USDA’s full year projection, just 1% below the average pace. Spec funds added 1,706 contracts to their CFTC net short position in the week ending March 12, with the position at 20,007 contracts on that date.

--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