Ag Market Commentary
BRUG - Fri Jun 07, 7:30AM CDT

Corn futures are trading 2 to 4 cents lower this morning. They ended the Thursday session with most contracts 3 to 5 3/4 cents higher, as strength in wheat was supportive. The USDA showed abysmal old crop corn export sales in the week of May 30, with a net reduction of 8,788 MT. This was also the week nearby corn was at a 3-year high, with US competitiveness dropping. New crop sales totaled just 23,458 MT. Monthly export data from Census indicated 5.472 MMT (215.43 mbu) of corn were shipped in April, up 14.7% from March but 29.04% lower yr/yr. A Bloomberg survey found the average analyst estimate for 2019/20 corn ending stocks in the June 11 report dropping to 1.772 billion bushels from the May USDA figure of 2.485 billion.

--provided by Brugler Marketing & Management



Soybean futures are 3 cents lower this morning after seeing losses of 1 to 2 cents in most contracts on Thursday. Soymeal was down $1.80/ton, with bean oil 54 points higher. Weather forecasts show a planting window for some, but too brief for others to get dried out. The weekly update to the Export Sales report indicated 510,024 MT of old crop soybeans sold in the final full week of May. Unknown destinations purchased 214,000 MT, with China at 72,300 MT in bookings. New crop sales totaled 73,740 MT. April US soybean exports according to Census were 2.399 MMT (88.16 mbu), which was the second largest April figure on record. Meal exports in April were a monthly record 1.27 MMT.

--provided by Brugler Marketing & Management



Wheat futures are mostly 6 to 7 cents lower in the KC and Chicago contracts this Friday morning. Minneapolis spring wheat futures are just fractionally lower. Wheat ended Thursday with most contracts 9 to 19 1/4 cents higher. The nearby CBT-KC spread closed at the largest CBT premium on record of 54 3/4 cents on Thursday. Unshipped old crop exports sales remained at 1.628 MMT, with just 1 shipping day left in the marketing year. Most will be rolled over for new crop delivery. New crop sales in the week ending May 30 were a MY high 501,893 MT. Census Trade data for April shows US exporters shipped 2.83 MMT (103.98 mbu) of wheat, the highest monthly total all year. That was a 6-year high for April and 44.46% above March, with the YTD total at 813 mbu and just May data remaining. Japan purchased a total of 77,042 MT of Australian and US (58,157 MT) wheat in their weekly MOA tender.

--provided by Brugler Marketing & Management



Live cattle futures were up 12.5 to 30 cents in most contracts on Thursday, with June down a quarter. Feeder cattle futures were mixed, with contracts anywhere from 17.5 cents lower to 7.5 cents higher. The CME feeder cattle index was down 15 cents to $131.73 on June 5. Wholesale boxed beef prices were mixed on Thursday afternoon. Choice boxes were up 14 cents at $222.25 with Select boxes 2 cents lower @ $207.16. USDA shows FI cattle slaughter WTD at 481,000 head. That is 2,000 head larger than the same week last year. Cash trade this week has been around $113 in the South and $114 in the North. Both are $2 lower than last week. There have also been carcass based sales @$184 in NE. Weekly Beef export sales for the week of May 3 totaled 16,704 MT, with weekly shipments hitting 17,892 MT.

--provided by Brugler Marketing & Management



Lean Hog futures were anywhere from 47.5 cents lower to 55 cents higher on Thursday. The CME Lean Hog Index was down 23 cents from the previous day @ $80.67 on June 4. The USDA pork carcass cutout value was up 18 cents at $83.25 on Thursday afternoon. The national average base hog was down 73 cents on Thursday, with a weighted average price of $75.63. Estimated FI hog slaughter WTD is 1.893 million head, 107,000 head above the same week last year. Export sales of pork in the week that ended on May 30 were tallied at 33,776 MT for 2018, with China buying 17,394 MT. There was also 10,765 MT in forward sales for 2020, all for China. Actual shipments were reported at 22,192 MT, but only 3,300 MT were headed to China.

--provided by Brugler Marketing & Management



Cotton futures are trading 29 to 65 points lower this morning. They were mostly 8 to 17 points lower on Thursday. All upland cotton export sales totaled 182,316 RB for 18/19 during the week that ended on May 30, with India buying 144,900 RB. That was well above the same time last year but down 36.86% from the previous week. New crop sales totaled just 51,625 RB. Weekly shipments were at 308,590 RB, a drop of 24.84% wk/wk and down 46.46% from last year. Monthly trade data from Census showed 1.759 million bales exported during April. That is the third largest April total on record but well behind last year’s record. The Cotlook A index for June 5 was down 50 points from the previous day to 79.85 cents/lb. The weekly Average World Price (AWP) is now 61.51 cents/lb through next Thursday, up 20 points from the previous week.

--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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