Ag Market Commentary
BRUG - Tue Mar 13, 4:43PM CDT

Corn futures closed the Tuesday session with most contracts 1 to 2 cents higher. Weakness in the last hour of trading came on spillover from wheat. The USDA reported private export sales of 210,000 MT of 17/18 corn to South Korea through their daily system this morning. According to DTN, the national average corn price on Monday was 33 cents above last year at $3.53 1/4. That puts the basis 3 1/4 cents above this time last year at -31H, with the March contract is set to expire on Wednesday. The weekly EIA report will be released on Wednesday morning. Dr. Michael Cordonnier trimmed his Argentina corn estimate another 1 MMT to 43 MMT, while leaving his Brazil projection at 86 MMT.

Mar 18 Corn closed at $3.85 1/2, up 1 1/4 cents,

May 18 Corn closed at $3.91 3/4, up 1 cent,

Jul 18 Corn closed at $3.99 3/4, up 1 1/4 cents

Sep 18 Corn closed at $4.04 1/2, up 1 3/4 cents

Soybean futures were 6 to 8 1/2 cents in the green on the day. Nearby Soymeal futures were up $2.50/ton, with front month soy oil 46 points higher. NOPA will release their monthly US crush report for February crush among its members this Thursday. Analysts are estimating that the crush will total a monthly record 149.443 bbu, with stocks totaling 1.766 billion pounds. The national average cash price for soybeans was at $9.61 3/4 as of Monday evening according to DTN. That would put the average basis 2 1/4 cents weaker than a year ago at -71 1/2 cents when comparing too soon to expire March. Argentina’s soybean production estimate was reduced another 2 MMT to 43 MMT by Dr. Cordonnier, with the Brazil estimate still at 114 MMT.

Mar 18 Soybeans closed at $10.40 1/2, up 7 1/4 cents,

May 18 Soybeans closed at $10.48 3/4, up 7 3/4 cents,

Jul 18 Soybeans closed at $10.59 1/2, up 8 1/2 cents,

Sep 18 Soybeans closed at $10.49 3/4, up 8 cents,

Mar 18 Soybean Meal closed at $372.30, up $2.50,

Mar 18 Soybean Oil closed at $32.02, up $0.46

Wheat futures ended the Tuesday session with most CBT and KC contracts steady to 4 1/4 cents lower. MPLS higher in the front months, but down fractionally in the back months. The USDA indicated on Monday that TX and OK ratings were slightly improved thanks to moisture in the Eastern areas. Taiwan mills purchased 92,465 MT of US wheat on Tuesday. Japan is seeking 119,610 MT of US, Canadian and Australian wheat in their weekly MOA tender that closes on Thursday. Of the total 32,285 MT is to be sourced from the US.

Mar 18 CBOT Wheat closed at $4.85 1/2, down 4 1/4 cents,

Mar 18 KCBT Wheat closed at $5.07, down 2 cents,

Mar 18 MGEX Wheat closed at $6.29 1/2, up 4 cents

Live cattle futures settled the day with most contracts steady to 50 cents lower, as nearby April was 35 cents higher. Feeder cattle futures were down 25 to $1.025 on Tuesday. The CME feeder cattle index was down 17 cents on March 8 at $143.17. Wholesale boxed beef values were lower on Tuesday afternoon. Choice boxes were down 17 cents at $223.73, with Select boxes 74 cents lower at $216.75. Estimated FI cattle slaughter was at 231,000 head through Tuesday, 3,000 head fewer than last week but 4,000 head above than the same week in 2017. Wednesday’s online FCE auction has just 113 head listed for sale, all from Kansas. There were a few reported cash sales of $127 on Tuesday, with some reaching up to $128 in the North.

Apr 18 Cattle closed at $121.900, up $0.350,

Jun 18 Cattle closed at $113.150, down $0.125,

Aug 18 Cattle closed at $110.775, down $0.050,

Mar 18 Feeder Cattle closed at $141.550, down $0.625

Apr 18 Feeder Cattle closed at $142.300, down $0.275

May 18 Feeder Cattle closed at $143.125, down $0.975

Lean hog futures were steady to 62.5 cents higher on Tuesday. The CME Lean Hog Index on March 9 was down 47 cents from the previous day to $67.05. The USDA pork carcass cutout value was 25 cents lower at $74.63 in the Tuesday PM report. The ham led the day, down $3.64, with the picnic and rib following lower. The national base hog weighted average price was 92 cents lower at $59.58 on Tuesday afternoon. The USDA estimated FI hog slaughter at 921,000 head through Tuesday. That is up 19,000 head from the previous week and 53,000 head more than the same week last year.

Apr 18 Hogs closed at $67.725, up $0.050,

May 18 Hogs closed at $71.850, up $0.625

Jun 18 Hogs closed at $77.475, up $0.425

Cotton futures finished the day with most contracts 8 to 35 points in the red. The Cotlook A index was down 50 points from the previous day on March 12 at 93.90 cents/lb. Cash sales on the Seam were reported at 2,272 bales on Monday, with prices averaging 70.73 cents/lb. The Adjusted World Price (AWP) was updated to 74.13 cents/lb, down 104 points from last week. Brazil is expected to plant 2.923 million acres of cotton in 17/18, nearly 26% above 16/17 according INTL FCStone. China sold 24,300 MT of the near 30,000 MT offered at an auction of state reserves on Tuesday.

May 18 Cotton closed at 82.980, down 30 points,

Jul 18 Cotton closed at 82.860, down 35 points

Oct 18 Cotton closed at 79.570, down 31 points

Market Commentary provided by:

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