AgriCharts Market Commentary

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Corn

Corn futures are mostly 5 to 6 cents higher at midday. Wednesday’s weekly EIA report showed ethanol production for the week that ended 4/20 dropping 24,000 barrels per day to 985,000 bpd. That is the lowest weekly production total since the week of October 6 last year. Stocks of ethanol were 357,000 barrels higher than the previous week at 21.701 million barrels. The Midwest was the only region to see stocks shrink. The average trade guess for old crop export sales ahead of tomorrow is 0.8-1.2 MMT, with new crop ranging 200,000-400,000 MT. China’s corn acreage is expected to be shown at 87.48 million acres in 2018, down nearly 823,000 acres from last year in effort to help trim stocks. Production of Brazil’s second crop is experiencing some dryness in Parana, the country’s second largest corn producing state.

May 18 Corn is at $3.86 1/2, up 5 1/4 cents,

Jul 18 Corn is at $3.95 3/4, up 5 3/4 cents,

Sep 18 Corn is at $4.03, up 5 3/4 cents

Dec 18 Corn is at $4.11 3/4, up 5 1/4 cents

Soybeans

Soybean futures are currently showing gains of 6 to 8 cents on Wednesday, with strong gains in meal. Soy meal is $5.60/ton higher, with front month soy oil down 23 points. Ahead of Thursday’s USDA Export Sales report, analysts are expecting to see old crop soybean sales in the range of 400,000-700,000 MT. New crop is seen as having the same range. Sales of soy meal are projected at 100,000-30,000 MT, with soy oil at 8,000-30,000 MT. The USDA Ag Attach expects the Brazilian soybean crop at 115 MMT for 2018/19, even with the current 17/18 projection.

May 18 Soybeans are at $10.30, up 7 3/4 cents,

Jul 18 Soybeans are at $10.41 3/4, up 7 3/4 cents,

Aug 18 Soybeans are at $10.43 1/2, up 7 1/2 cents,

Sep 18 Soybeans are at $10.38 1/4, up 6 1/2 cents,

May 18 Soybean Meal is at $377.70, up $5.60

May 18 Soybean Oil is at $30.78, down $0.23

Wheat

Wheat futures are trading 11 to 12 1/4 cents higher in the CBT and KC contracts at midday. MPLS is 7 to 8 cents in the green. The 5-day QPF shows most of the Southern Plains fairly dry over the next few days. After last week’s Export Sales report showed a net reduction in old crop wheat sales, this week’s report is estimated to have a net reduction of 100,000 MT to sales of 200,000 MT. New crop wheat is expected to see sales of 150,000-350,000 MT in the week that ended April 19. The annual Hard Winter Wheat tour will take place next week, as analysts will look to get a better idea of the crop’s quality.

May 18 CBOT Wheat is at $4.84 1/4, up 11 3/4 cents,

May 18 KCBT Wheat is at $5.04 3/4, up 12 1/4 cents,

May 18 MGEX Wheat is at $6.00 1/4, up 7 1/2 cents

Cattle

Live cattle futures are steady to 80 cents higher on Wednesday. Feeder cattle futures are up 50 to 75 cents in the front months. The CME feeder cattle index was down 5 cents on April 23 at $138.08. Wholesale boxed beef values were higher on Wednesday morning. Choice boxes were up 96 cents at $218.61, with Select boxes $1.55 higher at $203.66. Estimated FI cattle slaughter was 237,000 head through Tuesday. That is 1,000 more than the previous week and up 5,000 head from the same week in 2017. This morning’s FCE online auction saw none of the 3,194 head sold, with feedlots passing on offers of $120.25 and $121.

Apr 18 Cattle are at $121.900, up $0.800,

Jun 18 Cattle are at $105.350, up $0.300,

Aug 18 Cattle are at $105.000, up $0.075,

Apr 18 Feeder Cattle are at $139.600, up $0.500

May 18 Feeder Cattle are at $140.900, up $0.750

Aug 18 Feeder Cattle are at $147.025, up $0.550

Lean Hogs

Lean hog futures are showing steady to 55 cent gains in the nearby contracts at midday. The CME Lean Hog Index was up $1.12 from the previous day to $59.00 on April 23. The USDA pork carcass cutout value was up $1.46 at $69.54 this morning. The national base hog weighted average price was 16 cents higher at $58.23. The USDA estimated FI weekly hog slaughter at 930,000 head through Tuesday. That is 2,000 head below last week and 46,000 head above the same week in 2017.

May 18 Hogs are at $68.000, up $0.550,

Jun 18 Hogs are at $74.975, up $0.150

Jul 18 Hogs are at $78.050, up $0.050

Cotton

Cotton futures are posting strong triple digit gains in most nearby contracts at midday. The US dollar index is not having much of a factor at the moment, up 341 points. Drier weather is seen over most of TX during the next week. The Cotlook A index was down 60 points from the previous day at 93.20 cents/lb. The Adjusted World Price, effective through Thursday, is currently at 74.16 cents/lb. China sold 14,648 MT of cotton from states reserves on Wednesday, totaling 48.82% of the total offered.

May 18 Cotton is at 84.52, up 226 points,

Jul 18 Cotton is at 83.66, up 215 points

Dec 18 Cotton is at 78.760, up 117 points


Market Commentary provided by:

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