AgriCharts Market Commentary

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Corn

Corn futures are down 2 to 2 1/2 cents in most nearby contracts on Turnaround Tuesday. A large private export sale of 256,096 MT of 17/18 US corn to unknown destinations was reported by the USDA this morning through their daily system. Analysts with Informa Economics expect US producers to plant 89.179 million acres of corn in 2018. That is nearly 496,000 acres lower than their December estimate and would be 1.24% below 2017. China’s corn imports during December totaled 450,000 MT, well above the previous year. Total imports of corn in 2017 totaled 2.83 MMT, down 10.73% from 2016. They are still working aggressively to shrink large domestic stockpiles.

Mar 18 Corn is at $3.50, down 2 cents,

May 18 Corn is at $3.58 1/4, down 2 1/4 cents,

Jul 18 Corn is at $3.66 3/4, down 2 1/4 cents

Sep 18 Corn is at $3.74 1/4, down 2 1/2 cents

Soybeans

Soybean futures are staying close to UNCH at midday, with nearby March down 1/4 cent. Meal futures are down 60 cents/ton, with nearby soy oil up 38 points. Estimates for 2018 US soybean acreage from Informa analysts are showing 91.197 million acres planted. That is a 190,000 acre drop from the previous projection in December and 1.2% larger than 2017 acres. According to government data, exports of soybeans in Brazil during January have totaled 1.043 MMT as of January 19. That has already surpassed January totals as far back as 2012 when the whole month showed 1.012 MMT in exports.

Mar 18 Soybeans are at $9.84, down 1/4 cent,

May 18 Soybeans are at $9.95 1/2, down 1/4 cent,

Jul 18 Soybeans are at $10.05 1/2, down 1/4 cent,

Aug 18 Soybeans are at $10.07 1/2, unch ,

Mar 18 Soybean Meal is at $338.00, down $0.60

Mar 18 Soybean Oil is at $32.54, up $0.38

Wheat

Wheat futures are showing 4 to 5 cent losses in most CBT and KC contracts at midday. MPLS is down 1 to 2 cents in most front months. Temperatures over the Plains are expected to pick up over the next week, putting less stress from cold temps on the HRW crop. Japan is seeking 84,577 MT of wheat from the US and Australia, with 60,747 MT US specific and the tender to close on Thursday. China sold 596,594 MT of wheat at an auction of state reserves on Tuesday, which was 28.9% of the total offered.

Mar 18 CBOT Wheat is at $4.21 1/4, down 4 1/2 cents,

Mar 18 KCBT Wheat is at $4.23 1/4, down 5 1/4 cents,

Mar 18 MGEX Wheat is at $6.05, down 2 cents

Cattle

Live cattle futures are currently 50 to 82.5 cents higher. Feeder cattle futures, helped by lower corn, are mostly $1 to $1.50 in the green. The CME feeder cattle index on January 19 was at $147.54, down 47 cents from the previous day. Wholesale boxed beef values were higher on Tuesday morning. Choice boxes were up $1.37 at $206.44 with Select boxes 34 cents higher at $199.86. Estimated FI cattle slaughter was at 88,000 head on Monday, hurt by blizzard like conditions in NE. That is down 30,000 from last week and 25,000 from the same week last year. Ahead of Friday’s COF report, analysts are expecting to see placed cattle during December down 3.1% from a year ago, helped by larger placement numbers in previous months.

Feb 18 Cattle are at $124.375, up $0.825,

Apr 18 Cattle are at $124.575, up $0.600,

Jun 18 Cattle are at $116.050, up $0.500,

Jan 18 Feeder Cattle are at $148.650, up $0.750

Mar 18 Feeder Cattle are at $146.900, up $1.075

Apr 18 Feeder Cattle are at $147.600, up $1.125

Lean Hogs

Lean hog futures are mixed at midday, with nearby Feb up 57.5 cents and back months lower. The CME Lean Hog Index was down 27 cents on January 19 at $73.40. The USDA pork carcass cutout value was $1.21 higher at $83.38 in the Tuesday morning report. The belly was the only primal reported lower, down 12 cents. The national base hog weighted average price was down 19 cents to $69.47. The USDA estimated FI hog slaughter at 405,000 on Monday, which is 12,000 larger than last week, but 35,000 head lower than this week last year.

Feb 18 Hogs are at $72.375, up $0.575,

Apr 18 Hogs are at $75.050, down $0.075

May 18 Hogs are at $79.575, down $0.075

Cotton

Cotton futures are currently 80 to 89 points lower on Tuesday, on a little bit of profit taking. Friday’s Cotton classing report showed that 598,507 bales of upland cotton were classed for the week that ended January 18. That brings the total for the marketing year to 16.889 million bales. This morning’s USDA Cotton Ginnings report showed 17.43 million RB had been ginned as of January 15. That was a 1.277 million RB jump since Jan 1, and is 17% larger than this time last year. Online cash sales on the Seam totaled 19,538 bales on Monday, with prices down 36 points, averaging 72.32 cents/lb. The Cotlook A Index for January 22 was up 75 points from the previous day at 94.10 cents/lb.

Mar 18 Cotton is at 82.52, down 89 points,

May 18 Cotton is at 82.98, down 80 points

Jul 18 Cotton is at 83.39, down 80 points


Market Commentary provided by:

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