Ag Market Commentary
BRUG - Mon Apr 22, 7:31AM CDT

Corn futures are trading 2 to 2 1/2 cents lower this morning. They closed 3/4 lower to 1/2 cent higher on Thursday ahead of the 3-day weekend. USDA’s weekly Export Sales report showed sharply higher sales of 947,600 MT for old crop in the week ending April 11 with so-so new crop activity. The government was open on Friday although the markets were closed. The large managed money spec funds added 35,783 contracts to their CFTC net short position in the week ending April 16. That put them at a record 307,529 contracts net short. Trade ideas for corn planting progress are running 6-8% vs. the 5 year average of 12%. Better activity was being noted on Saturday and Sunday as fields dried out in some areas. --provided by Brugler Marketing & Management

Soybean futures are 2 1/2 to 3 cents lower to begin the week. They settled 1 to 1 3/4 cents higher on position squaring ahead of the 3-day holiday weekend. Preliminary open interest confirmed some light net buying, rising 2,935 contracts. Meal futures were down $.70/ton but May soy oil was 34 points higher. The weekly USDA Export Sales report confirmed only 382,100 MT for old crop export sales in the latest reporting week. Crushers were buying bean futures last week, with spec funds taking the other side. The CFTC spec fund net short rose to 91,400 contracts as of 4/16. That was an increase of 13,188 contracts for the week. --provided by Brugler Marketing & Management

Wheat futures are trading 3 to 6 cents lower this morning, with Chicago SRW the weakest. US Export commitments YTD are 97% of the full year WASDE estimate vs. the average pace of 103%. However, unshipped sales are 71% larger than year ago, offering the potential for a strong finish to the old crop shipping year. CFTC released Commitment of Traders data on Friday afternoon. As on 4/16 COB, spec funds were net short 63,076 contracts in Chicago SRW futures & options. That was 8,808 more net short than the previous week. --Provided by Brugler Marketing & Management

Live cattle futures saw a $1.60 pop in nearby April futures on Thursday, thanks to higher cash cattle trade. The rest of the contracts were 15 lower to 30 higher. Feeder cattle futures settled 25 to 95 cents higher. The CME feeder cattle index was up $1.43 to $145.01. Wholesale boxed beef prices were higher on Friday. Choice boxes were up 59 cents at $233.65, with Select boxes $1.03 higher @ $220.49. USDA estimated weekly FI cattle slaughter at 638,000 head including Saturday. That would match the previous week and be 11,000 head above the same week a year ago. Cash cattle trade $130.20 in the north on Friday. The monthly USDA Cattle on Feed report showed the largest April 1 On Feed since the reporting series began in 1996. Numbers were up 2% from 2018, with March placements 4.8% larger than the same month a year ago. The Commitment of Traders report released over the weekend showed the large spec funds adding to their record bullish position in cattle by 3,693 contracts last week. That put them net long 152,634 contracts. ---provided by Brugler Marketing & Management

Lean Hog futures were mixed on Thursday and closed on Friday. May was up $1.27 and broke the $90 mark. The CME Lean Hog Index was up 40 cents from the previous day @ $80.24 on April 16. The USDA pork carcass cutout value was $87.64 in the Friday PM report, down 21 cents. The national average base hog was $80.86, up $2.93. Estimated weekly FI hog slaughter was 2.380 million head through Saturday, down 4,000 from the previous week and 41,000 below last year due to smaller Friday and Saturday kills. --provided by Brugler Marketing & Management

Cotton futures are trading 37 to 43 points higher this morning. They closed 61 to 80 points lower on Thursday. The dollar is weaker this morning following the Easter bombing attacks on Christian churches and hotels with Western guests in Sri Lanka. The markets were closed on Friday, but CFTC was open. The large spec funds reduced their CFTC net long position in cotton by 3,186 contracts in the week ending April 16. The funds were still net long 11,467 contracts of futures and options on that date. USDA reported old crop upland cotton export sales were down 25% from the previous week at 217,600 RB, with 20,600 RB booked for 2019/20. The Cotlook A Index was up 150 points at 87.75 on April 17. The new weekly Average World Price (AWP) is 68.88, effective through Thursday. USDA ag attach reports suggest that Chinese cotton imports will rise 200,000 MT to 2.0 MMT in 2019/20. --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

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