News Source: BRUG

Cattle

Live cattle futures posted gains of 50 to 65 cents on Friday, with June up a quarter. Feeder cattle futures posted gains as well, ranging from $1.125 to $1.625 higher in the front months. The CME feeder cattle index was up $1.60 on May 25 at $136.04. Wholesale boxed beef values were lower on Friday afternoon. Choice boxes were down $1.57 at $227.43, with Select boxes 31 cents lower at $204.62. Week to date FI cattle slaughter was estimated at 647,000 head through Saturday. That is 13,000 head lower than last week, on lighter expected Saturday slaughter. Cash sales were reported at $110 in CO and KS on Friday, with NE at $176-180. This morning’s USDA Cattle on Feed report showed April placements at 1.695 million head, 8.28% lower than last year, slightly above expectations. Marketings were at 1.803 million head, up 6%. That put May 1 cattle on feed at 11.558 million head, up 5.09% from a year ago and a little larger than the average trade estimate.

Jun 18 Cattle closed at $104.650, up $0.250,

Aug 18 Cattle closed at $102.300, up $0.525,

Oct 18 Cattle closed at $105.825, up $0.575,

Aug 18 Feeder Cattle closed at $144.925, up $1.625

Sep 18 Feeder Cattle closed at $144.450, up $1.350

Oct 18 Feeder Cattle closed at $144.325, up $1.125

Soybeans

Soybean futures closed anywhere from 5 1/2 cents to 6 1/4 cents higher, with July up 4.31% since last Friday. Soymeal was up $3.00/ton, with front month soy oil down 37 points. The Friday afternoon Commitment of Traders report indicated managed month backing off their net long position in soybean futures and options by 9,833 contracts. That net position was at 98,228 contracts on Tuesday evening. The USDA reported another private export sale of 312,000 MT of new crop US beans to China this morning. An additional report of 132,000 optional origin beans was also sold to China. During the Brazilian trucker strike, now suspended, ABIOVE stated that meal and soy oil production had “practically” stopped. BAGE places the Argentine soybean harvest at 80.3% complete, now behind the average of 84.9%.

Jul 18 Soybeans closed at $10.41 1/2, up 5 3/4 cents,

Aug 18 Soybeans closed at $10.46, up 6 1/4 cents,

Sep 18 Soybeans closed at $10.49, up 6 1/4 cents,

Jan 19 Soybeans closed at $10.56 1/4, up 5 1/2 cents,

Jul 18 Soybean Meal closed at $380.30, up $3.00,

Jul 18 Soybean Oil closed at 31.34, down $0.37

Lean Hogs

Lean hog futures closed down 62 1/2 cents for June on Friday, with all deferred contracts higher. The CME Lean Hog Index was up 26 cents from the previous day to $69.29 on May 23. It rose $2.28 for the week. The USDA pork carcass cutout value was up $1.49 at $75.60 on Friday afternoon. The national base hog weighted average price was 35 cents higher at $65.07 this afternoon. The USDA estimated weekly FI hog slaughter at 2.302 million head through Saturday. That is 46,000 head lower than last week and 100,000 above the same week in 2017. Most plants will be dark on Monday. Managed money added another 2,195 contracts to their CFTC net short position in hog futures and options. That net position of -10,053 contracts is the largest reported net short position since April 2013.

Jun 18 Hogs closed at $74.200, down $0.625,

Jul 18 Hogs closed at $77.550, up $0.775

Aug 18 Hogs closed at $76.075, up $0.725

Cotton

Cotton futures finished the week with triple digit gains in the nearby contracts. July posted a 3.07% gain since last Friday. Thursday’s CFTC Cotton on Call report showed mills trimming their unfixed call sales for July by 3,090 contracts. As of May 18 they still had 46,553 contracts for July. Spec funds in cotton futures and option added 2,231 contracts to their net short position of 91,491 contracts as of Tuesday. China sold another 30,008 MT of cotton offered at an auction of state reserves on Thursday. The Cotlook A index was down 45 points from the previous day to 94.45 cents/lb on May 24. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton closed at 89.210, up 175 points,

Oct 18 Cotton closed at 87.520, up 122 points

Dec 18 Cotton closed at 86.650, up 110 points

Ag Market Commentary

Corn futures ended the Friday session with gains of 1 to 2 3/4 cents in the front months. July was up 3 1/2 cents on the week. CFTC data showed speculators adding 8,298 contracts to their net long position in corn futures and options to 199,970 in the week ending May 22. China sold another 1.24 MMT of corn from state reserves on Friday, totaling 31% of the offered amount. The Buenos Aires Grain Exchange estimates that the Argentina corn crop was 34.9% harvested as of Wednesday, lagging the average at 37.2%. US markets will be closed on Monday for Memorial Day.

Jul 18 Corn closed at $4.06, up 1 3/4 cents,

Sep 18 Corn closed at $4.15, up 2 cents,

Dec 18 Corn closed at $4.25, up 2 1/2 cents

Mar 19 Corn closed at $4.33 1/2, up 2 3/4 cents



Soybean futures closed anywhere from 5 1/2 cents to 6 1/4 cents higher, with July up 4.31% since last Friday. Soymeal was up $3.00/ton, with front month soy oil down 37 points. The Friday afternoon Commitment of Traders report indicated managed month backing off their net long position in soybean futures and options by 9,833 contracts. That net position was at 98,228 contracts on Tuesday evening. The USDA reported another private export sale of 312,000 MT of new crop US beans to China this morning. An additional report of 132,000 optional origin beans was also sold to China. During the Brazilian trucker strike, now suspended, ABIOVE stated that meal and soy oil production had “practically” stopped. BAGE places the Argentine soybean harvest at 80.3% complete, now behind the average of 84.9%.

Jul 18 Soybeans closed at $10.41 1/2, up 5 3/4 cents,

Aug 18 Soybeans closed at $10.46, up 6 1/4 cents,

Sep 18 Soybeans closed at $10.49, up 6 1/4 cents,

Jan 19 Soybeans closed at $10.56 1/4, up 5 1/2 cents,

Jul 18 Soybean Meal closed at $380.30, up $3.00,

Jul 18 Soybean Oil closed at 31.34, down $0.37



Wheat futures saw gains anywhere from 9 1/2 to 15 cents on Friday. KC led the way up 15 cents with CBT trailing 12 3/4 cents higher. MGEX closed 9 1/2 cents higher in nearby July. As a result of adverse weather conditions in some areas, Russia’s IKAR trimmed their range for the country’s expected wheat production by 3 MMT on each side to 69.5-77 MMT; this aided CBOT trading higher Friday morning. The large spec funds in Chicago wheat futures and options trimmed their CFTC net short position by 3,837 contracts in the week that ended May 22 to -1,685 contracts. They had a net long position of 46,323 contracts in KC wheat futures and options as of close of business on May 22.

Jul 18 CBOT Wheat closed at $5.43, up 12 3/4 cents,

Jul 18 KCBT Wheat closed at $5.64, up 15 cents,

Jul 18 MGEX Wheat closed at $6.44 1/4, up 9 1/2 cents



Live cattle futures posted gains of 50 to 65 cents on Friday, with June up a quarter. Feeder cattle futures posted gains as well, ranging from $1.125 to $1.625 higher in the front months. The CME feeder cattle index was up $1.60 on May 25 at $136.04. Wholesale boxed beef values were lower on Friday afternoon. Choice boxes were down $1.57 at $227.43, with Select boxes 31 cents lower at $204.62. Week to date FI cattle slaughter was estimated at 647,000 head through Saturday. That is 13,000 head lower than last week, on lighter expected Saturday slaughter. Cash sales were reported at $110 in CO and KS on Friday, with NE at $176-180. This morning’s USDA Cattle on Feed report showed April placements at 1.695 million head, 8.28% lower than last year, slightly above expectations. Marketings were at 1.803 million head, up 6%. That put May 1 cattle on feed at 11.558 million head, up 5.09% from a year ago and a little larger than the average trade estimate.

Jun 18 Cattle closed at $104.650, up $0.250,

Aug 18 Cattle closed at $102.300, up $0.525,

Oct 18 Cattle closed at $105.825, up $0.575,

Aug 18 Feeder Cattle closed at $144.925, up $1.625

Sep 18 Feeder Cattle closed at $144.450, up $1.350

Oct 18 Feeder Cattle closed at $144.325, up $1.125



Lean hog futures closed down 62 1/2 cents for June on Friday, with all deferred contracts higher. The CME Lean Hog Index was up 26 cents from the previous day to $69.29 on May 23. It rose $2.28 for the week. The USDA pork carcass cutout value was up $1.49 at $75.60 on Friday afternoon. The national base hog weighted average price was 35 cents higher at $65.07 this afternoon. The USDA estimated weekly FI hog slaughter at 2.302 million head through Saturday. That is 46,000 head lower than last week and 100,000 above the same week in 2017. Most plants will be dark on Monday. Managed money added another 2,195 contracts to their CFTC net short position in hog futures and options. That net position of -10,053 contracts is the largest reported net short position since April 2013.

Jun 18 Hogs closed at $74.200, down $0.625,

Jul 18 Hogs closed at $77.550, up $0.775

Aug 18 Hogs closed at $76.075, up $0.725



Cotton futures finished the week with triple digit gains in the nearby contracts. July posted a 3.07% gain since last Friday. Thursday’s CFTC Cotton on Call report showed mills trimming their unfixed call sales for July by 3,090 contracts. As of May 18 they still had 46,553 contracts for July. Spec funds in cotton futures and option added 2,231 contracts to their net short position of 91,491 contracts as of Tuesday. China sold another 30,008 MT of cotton offered at an auction of state reserves on Thursday. The Cotlook A index was down 45 points from the previous day to 94.45 cents/lb on May 24. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton closed at 89.210, up 175 points,

Oct 18 Cotton closed at 87.520, up 122 points

Dec 18 Cotton closed at 86.650, up 110 points



Wheat

Wheat futures saw gains anywhere from 9 1/2 to 15 cents on Friday. KC led the way up 15 cents with CBT trailing 12 3/4 cents higher. MGEX closed 9 1/2 cents higher in nearby July. As a result of adverse weather conditions in some areas, Russia’s IKAR trimmed their range for the country’s expected wheat production by 3 MMT on each side to 69.5-77 MMT; this aided CBOT trading higher Friday morning. The large spec funds in Chicago wheat futures and options trimmed their CFTC net short position by 3,837 contracts in the week that ended May 22 to -1,685 contracts. They had a net long position of 46,323 contracts in KC wheat futures and options as of close of business on May 22.

Jul 18 CBOT Wheat closed at $5.43, up 12 3/4 cents,

Jul 18 KCBT Wheat closed at $5.64, up 15 cents,

Jul 18 MGEX Wheat closed at $6.44 1/4, up 9 1/2 cents

Corn

Corn futures ended the Friday session with gains of 1 to 2 3/4 cents in the front months. July was up 3 1/2 cents on the week. CFTC data showed speculators adding 8,298 contracts to their net long position in corn futures and options to 199,970 in the week ending May 22. China sold another 1.24 MMT of corn from state reserves on Friday, totaling 31% of the offered amount. The Buenos Aires Grain Exchange estimates that the Argentina corn crop was 34.9% harvested as of Wednesday, lagging the average at 37.2%. US markets will be closed on Monday for Memorial Day.

Jul 18 Corn closed at $4.06, up 1 3/4 cents,

Sep 18 Corn closed at $4.15, up 2 cents,

Dec 18 Corn closed at $4.25, up 2 1/2 cents

Mar 19 Corn closed at $4.33 1/2, up 2 3/4 cents

Wheat

Wheat futures are trading 8 to 12 cents higher on Friday, with the KC contract the strongest at the moment. With just 2 reporting weeks left in the 17/18 MY exports are just 88% of the USDA projection, with the average pace at 95%. If you add in the unshipped sales, just 96% of the export estimate is complete vs. the average of 105%. That suggests the USDA may lower the 17/18 export number on June 12. Russia’s IKAR trimmed their range for the country’s expected wheat production by 3 MMT on each side to 69.5-77 MMT.

Jul 18 CBOT Wheat is at $5.39 3/4, up 9 1/2 cents,

Jul 18 KCBT Wheat is at $5.60 3/4, up 11 3/4 cents,

Jul 18 MGEX Wheat is at $6.43, up 8 1/4 cents

Corn

Corn futures are currently showing gains of 1 to 2 cents at midday, ahead of the 3-day weekend. Actual exports are slowly catching up to the USDA export projection, now at 63% vs. the normal pace of 67%. Export commitments for corn jumped out to a 1.3% lead over this time last year. They are typically 94% of the USDA export number, with this year at 95% complete. China sold another 1.24 MMT of corn from state reserves on Friday, totaling 31% of the offered amount. The Buenos Aires Grain Exchange estimates that the Argentina corn crop was 34.9% harvested as of Wednesday, lagging the average at 37.2%.

Jul 18 Corn is at $4.05 1/2, up 1 1/4 cents,

Sep 18 Corn is at $4.14 1/4, up 1 1/4 cents,

Dec 18 Corn is at $4.24 1/4, up 1 3/4 cents

Mar 19 Corn is at $4.32 1/2, up 1 3/4 cents

Cattle

Live cattle futures are mostly 22.5 to 37.5 cents lower at the moment. Feeder cattle futures are also down 17.5 to 37.5 cents on Friday. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower on Friday morning. Choice boxes were down $1.59 at $227.41, with Select boxes 4 cents lower at $204.89. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Very few cash sales have been reported so far this week, with bids of $110 being reported at the moment. This morning’s USDA Cattle on Feed report showed April placements at 1.695 million head, 8.28% lower than last year, slightly above expectations. Marketings were at 1.803 million head, up 6%. That put May 1 cattle on feed at 11.558 million head, up 5.09% from a year ago and a little larger than the average trade estimate.

Jun 18 Cattle are at $104.025, down $0.375,

Aug 18 Cattle are at $101.425, down $0.350,

Oct 18 Cattle are at $105.025, down $0.225,

Aug 18 Feeder Cattle are at $143.125, down $0.175

Sep 18 Feeder Cattle are at $142.850, down $0.250

Oct 18 Feeder Cattle are at $142.825, down $0.375

Soybeans

Soybean futures are up 6 to 7 cents on Friday, with no trading on Monday. Soymeal is up $3.40/ton, with front month soy oil down 37 points. The USDA reported another private export sale of 312,000 MT of new crop US beans to China. An additional report of 132,000 optional origin beans was also sold to China. Shipments of soybeans have some catching up to do before August 31, at only 81% of the USDA projection vs. the average of 91% for this date Total commitments are now 98% of that projection, with the typical pace at 99%. Due to the Brazil trucker strike, now suspended, Abiove stated that meal and soy oil production had “practically” stopped. BAGE places the Argentine soybean harvest at 80.3% complete, now behind the average at 84.9%.

Jul 18 Soybeans are at $10.42, up 6 1/4 cents,

Aug 18 Soybeans are at $10.46 1/2, up 6 3/4 cents,

Sep 18 Soybeans are at $10.49 3/4, up 7 cents,

Nov 18 Soybeans are at $10.54 1/4, up 6 3/4 cents,

Jul 18 Soybean Meal is at $380.70, up $3.40

Jul 18 Soybean Oil is at $31.34, down $0.37

Lean Hogs

Lean hog futures are mixed at midday, with nearby June down 57.5 cents and back months higher. The CME Lean Hog Index was up 26 cents from the previous day to $69.29 on May 23. The USDA pork carcass cutout value was up 78 cents at $74.89 on Friday morning. The rib and ham were the only primals reported higher. The national base hog weighted average price was a penny lower at $64.78 on Thursday afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017.

Jun 18 Hogs are at $74.250, down $0.575,

Jul 18 Hogs are at $77.150, up $0.375

Aug 18 Hogs are at $75.775, up $0.425

Cotton

Cotton futures are trading 43 to 91 points higher at the moment, despite a sharply higher US dollar index. Thursday’s CFTC Cotton on Call report showed mills trimming their unfixed call sales for July by 3,090 contracts. As of May 18 they still had 46,553 contracts for July. Upland cotton export commitments are now 18.8% ahead of last year and 112% of the full year export estimate. Most years commitments would be 99% of WASDE figure by now. China sold another 30,008 MT of cotton offered at an auction of state reserves on Thursday. The Cotlook A index was down 45 points from the previous day to 94.45 cents/lb on May 24. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton is at 88.37, up 91 points,

Oct 18 Cotton is at 86.73, up 43 points

Dec 18 Cotton is at 86.38, up 83 points

Mar 19 Cotton is at 85.870, up 73 points

Ag Market Commentary

Corn futures are currently showing gains of 1 to 2 cents at midday, ahead of the 3-day weekend. Actual exports are slowly catching up to the USDA export projection, now at 63% vs. the normal pace of 67%. Export commitments for corn jumped out to a 1.3% lead over this time last year. They are typically 94% of the USDA export number, with this year at 95% complete. China sold another 1.24 MMT of corn from state reserves on Friday, totaling 31% of the offered amount. The Buenos Aires Grain Exchange estimates that the Argentina corn crop was 34.9% harvested as of Wednesday, lagging the average at 37.2%.

Jul 18 Corn is at $4.05 1/2, up 1 1/4 cents,

Sep 18 Corn is at $4.14 1/4, up 1 1/4 cents,

Dec 18 Corn is at $4.24 1/4, up 1 3/4 cents

Mar 19 Corn is at $4.32 1/2, up 1 3/4 cents



Soybean futures are up 6 to 7 cents on Friday, with no trading on Monday. Soymeal is up $3.40/ton, with front month soy oil down 37 points. The USDA reported another private export sale of 312,000 MT of new crop US beans to China. An additional report of 132,000 optional origin beans was also sold to China. Shipments of soybeans have some catching up to do before August 31, at only 81% of the USDA projection vs. the average of 91% for this date Total commitments are now 98% of that projection, with the typical pace at 99%. Due to the Brazil trucker strike, now suspended, Abiove stated that meal and soy oil production had “practically” stopped. BAGE places the Argentine soybean harvest at 80.3% complete, now behind the average at 84.9%.

Jul 18 Soybeans are at $10.42, up 6 1/4 cents,

Aug 18 Soybeans are at $10.46 1/2, up 6 3/4 cents,

Sep 18 Soybeans are at $10.49 3/4, up 7 cents,

Nov 18 Soybeans are at $10.54 1/4, up 6 3/4 cents,

Jul 18 Soybean Meal is at $380.70, up $3.40

Jul 18 Soybean Oil is at $31.34, down $0.37



Wheat futures are trading 8 to 12 cents higher on Friday, with the KC contract the strongest at the moment. With just 2 reporting weeks left in the 17/18 MY exports are just 88% of the USDA projection, with the average pace at 95%. If you add in the unshipped sales, just 96% of the export estimate is complete vs. the average of 105%. That suggests the USDA may lower the 17/18 export number on June 12. Russia’s IKAR trimmed their range for the country’s expected wheat production by 3 MMT on each side to 69.5-77 MMT.

Jul 18 CBOT Wheat is at $5.39 3/4, up 9 1/2 cents,

Jul 18 KCBT Wheat is at $5.60 3/4, up 11 3/4 cents,

Jul 18 MGEX Wheat is at $6.43, up 8 1/4 cents



Live cattle futures are mostly 22.5 to 37.5 cents lower at the moment. Feeder cattle futures are also down 17.5 to 37.5 cents on Friday. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower on Friday morning. Choice boxes were down $1.59 at $227.41, with Select boxes 4 cents lower at $204.89. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Very few cash sales have been reported so far this week, with bids of $110 being reported at the moment. This morning’s USDA Cattle on Feed report showed April placements at 1.695 million head, 8.28% lower than last year, slightly above expectations. Marketings were at 1.803 million head, up 6%. That put May 1 cattle on feed at 11.558 million head, up 5.09% from a year ago and a little larger than the average trade estimate.

Jun 18 Cattle are at $104.025, down $0.375,

Aug 18 Cattle are at $101.425, down $0.350,

Oct 18 Cattle are at $105.025, down $0.225,

Aug 18 Feeder Cattle are at $143.125, down $0.175

Sep 18 Feeder Cattle are at $142.850, down $0.250

Oct 18 Feeder Cattle are at $142.825, down $0.375



Lean hog futures are mixed at midday, with nearby June down 57.5 cents and back months higher. The CME Lean Hog Index was up 26 cents from the previous day to $69.29 on May 23. The USDA pork carcass cutout value was up 78 cents at $74.89 on Friday morning. The rib and ham were the only primals reported higher. The national base hog weighted average price was a penny lower at $64.78 on Thursday afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017.

Jun 18 Hogs are at $74.250, down $0.575,

Jul 18 Hogs are at $77.150, up $0.375

Aug 18 Hogs are at $75.775, up $0.425



Cotton futures are trading 43 to 91 points higher at the moment, despite a sharply higher US dollar index. Thursday’s CFTC Cotton on Call report showed mills trimming their unfixed call sales for July by 3,090 contracts. As of May 18 they still had 46,553 contracts for July. Upland cotton export commitments are now 18.8% ahead of last year and 112% of the full year export estimate. Most years commitments would be 99% of WASDE figure by now. China sold another 30,008 MT of cotton offered at an auction of state reserves on Thursday. The Cotlook A index was down 45 points from the previous day to 94.45 cents/lb on May 24. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton is at 88.37, up 91 points,

Oct 18 Cotton is at 86.73, up 43 points

Dec 18 Cotton is at 86.38, up 83 points

Mar 19 Cotton is at 85.870, up 73 points



Wheat

Wheat futures are 4 to 7 cents higher across the three markets this morning. The winter wheat contracts were steady to 4 cents lower yesterday. MPLS spring wheat was down 6 to 7 1/4 cents. Actual exports in the week of 5/17 were tallied at 362,161 MT, just half of the same time last year. With just 2 reporting weeks left in the 17/18 MY exports are just 88% of the USDA projection, with the average pace at 95%. If you add in the unshipped sales, just 96% of the export estimate is complete vs. the average of 105%. That suggests the USDA may lower the 17/18 export number on June 12. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Corn

Corn futures are trading 1 cent higher at the moment. They were weak into the close on Thursday, down 3 to 4 1/4 cents lower in the front months. Traders were taking money off the table ahead of the extended weekend. The weekly Export Sales report indicated shipments during the week of 5/17 totaled 1.469 MMT, a slight drop from the previous week. Actual exports are slowly catching up to the USDA export projection, now at 63% vs. the normal pace of 67%. Export commitments for corn jumped out to a 1.3% lead over this time last year. They are typically 94% of the USDA export number, with this year at 95% complete. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT.

Cattle

Live cattle futures were down 35 cents to $1.05 on the day. Feeder cattle futures were mostly lower, with May expiring higher at $136.40. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower on Thursday afternoon. Choice boxes were down $1.08 at $229.00, with Select boxes 11 cents lower at $204.93. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The report is scheduled for this morning at 11 AM CDT. Actual exports totaled 16,137 MT, 18.72% larger than last year. Total commitments of beef exports are 15.1% larger than the same time last year. Cash trade was fairly quiet on Thursday, with a few light reports of $114-115 sales.

Soybeans

Soybean futures are mostly 4 to 5 cents higher this morning. They ended Thursday steady to 3 1/2 cents lower on profit taking in front of the Memorial Day holiday. Soymeal was down $3.40/ton, with front month soy oil a point higher. Thursday morning’s Export Sales report exports in the week of 5/17 well above last year totaling 903,873 MT, with 133,200 MT to China. Shipments of soybeans have some catching up to do before August 31, at only 81% of the USDA projection vs. the average of 91% for this date Total commitments are now 98% of that projection, with the typical pace at 99%. Brazilian truckers ended their strike with a government promise to subsidize diesel fuel. Argentina’s Ag Ministry now sees their country’s soybean crop at 36.6 MMT, down 1 from their previous estimate. The government has neither confirmed nor denied that it is halting the monthly reduction in soybean export tariffs in order to shore up the budget.

Lean Hogs

Lean hog futures were one of the bright spots in the commodity complex on Thursday, with most contracts steady to 55 cents higher. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 70 cents at $74.11 on Thursday afternoon. The rib was the main cause, down $20.50 in one day. The national base hog weighted average price was a penny lower at $64.78 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017. Shipments of pork were tallied at 25,064 MT in the week of 5/17, 14.6% above the same week in 2017. Pork export commitments are not 4.2% larger than last year at this time.

Cotton

Cotton futures are 19 to 64 points higher this morning, expanding the upside breakout. They posted strong gains of 50 to 150 points in most contracts on Thursday. Upland cotton exports were stout last week at 402,955 RB. That was 21% larger than the same week in 2017. Upland cotton export commitments are now 18.8% ahead of last year and 112% of the full year export estimate. Most years commitments would be 99% of WASDE figure by now. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Ag Market Commentary

Corn futures are trading 1 cent higher at the moment. They were weak into the close on Thursday, down 3 to 4 1/4 cents lower in the front months. Traders were taking money off the table ahead of the extended weekend. The weekly Export Sales report indicated shipments during the week of 5/17 totaled 1.469 MMT, a slight drop from the previous week. Actual exports are slowly catching up to the USDA export projection, now at 63% vs. the normal pace of 67%. Export commitments for corn jumped out to a 1.3% lead over this time last year. They are typically 94% of the USDA export number, with this year at 95% complete. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT.



Soybean futures are mostly 4 to 5 cents higher this morning. They ended Thursday steady to 3 1/2 cents lower on profit taking in front of the Memorial Day holiday. Soymeal was down $3.40/ton, with front month soy oil a point higher. Thursday morning’s Export Sales report exports in the week of 5/17 well above last year totaling 903,873 MT, with 133,200 MT to China. Shipments of soybeans have some catching up to do before August 31, at only 81% of the USDA projection vs. the average of 91% for this date Total commitments are now 98% of that projection, with the typical pace at 99%. Brazilian truckers ended their strike with a government promise to subsidize diesel fuel. Argentina’s Ag Ministry now sees their country’s soybean crop at 36.6 MMT, down 1 from their previous estimate. The government has neither confirmed nor denied that it is halting the monthly reduction in soybean export tariffs in order to shore up the budget.



Wheat futures are 4 to 7 cents higher across the three markets this morning. The winter wheat contracts were steady to 4 cents lower yesterday. MPLS spring wheat was down 6 to 7 1/4 cents. Actual exports in the week of 5/17 were tallied at 362,161 MT, just half of the same time last year. With just 2 reporting weeks left in the 17/18 MY exports are just 88% of the USDA projection, with the average pace at 95%. If you add in the unshipped sales, just 96% of the export estimate is complete vs. the average of 105%. That suggests the USDA may lower the 17/18 export number on June 12. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.



Live cattle futures were down 35 cents to $1.05 on the day. Feeder cattle futures were mostly lower, with May expiring higher at $136.40. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower on Thursday afternoon. Choice boxes were down $1.08 at $229.00, with Select boxes 11 cents lower at $204.93. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The report is scheduled for this morning at 11 AM CDT. Actual exports totaled 16,137 MT, 18.72% larger than last year. Total commitments of beef exports are 15.1% larger than the same time last year. Cash trade was fairly quiet on Thursday, with a few light reports of $114-115 sales.



Lean hog futures were one of the bright spots in the commodity complex on Thursday, with most contracts steady to 55 cents higher. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 70 cents at $74.11 on Thursday afternoon. The rib was the main cause, down $20.50 in one day. The national base hog weighted average price was a penny lower at $64.78 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017. Shipments of pork were tallied at 25,064 MT in the week of 5/17, 14.6% above the same week in 2017. Pork export commitments are not 4.2% larger than last year at this time.



Cotton futures are 19 to 64 points higher this morning, expanding the upside breakout. They posted strong gains of 50 to 150 points in most contracts on Thursday. Upland cotton exports were stout last week at 402,955 RB. That was 21% larger than the same week in 2017. Upland cotton export commitments are now 18.8% ahead of last year and 112% of the full year export estimate. Most years commitments would be 99% of WASDE figure by now. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.



Wheat

Wheat futures also joined in the selloff ahead of the weekend, with winter wheat contracts steady to 4 cents lower. MPLS spring wheat was down 6 to 7 1/4 cents. Export sales of old crop wheat were reported at 112,265 MT this morning, exceeding most expectations. That was 78% larger than a week ago, but down 44.4% from a year ago. Actual exports in the week of 5/17 were tallied at 362,161 MT, just half of the same time last year. Japan purchased 96,870 MT of US and Canadian wheat in their weekly MOA tender on Thursday, with 63,735 MT US origin. Algeria also purchased wheat in a recent tender, totaling 700,000 MT of optional origin. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Jul 18 CBOT Wheat closed at $5.30 1/4, down 3/4 cent,

Jul 18 KCBT Wheat closed at $5.49, down 2 3/4 cents,

Jul 18 MGEX Wheat closed at $6.34 3/4, down 7 1/4 cents

Corn

Corn futures were weak into the close on Thursday, down 3 to 4 1/4 cents lower in the front months. Traders were taking money off the table ahead of the extended weekend. The USDA reported a private cancelation of 132,000 of grain sorghum to unknown destinations for 17/18 delivery this morning. Their weekly Export Sales report indicated old crop sales in the week of 5/17 at 854,304 MT, in the middle of expectations. That was a 13.33% drop from last week but is still 21.12% larger than the same week last year. New crop sales were tallied at 273,424, exceeding analysts’ estimates. Shipments during that week totaled 1.469 MMT, a slight drop from the previous week. China sold another 2.984 MMT of corn from state reserves on Thursday, totaling 74.89% of the offered amount. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT.

Jul 18 Corn closed at $4.04 1/4, down 4 1/4 cents,

Sep 18 Corn closed at $4.13, down 4 1/4 cents,

Dec 18 Corn closed at $4.22 1/2, down 4 cents

Mar 19 Corn closed at $4.30 3/4, down 3 1/2 cents

Cattle

Live cattle futures were down 35 cents to $1.05 on the day. Feeder cattle futures were mostly lower, with May expiring higher at $136.40. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower this afternoon. Choice boxes were down $1.08 at $229.00, with Select boxes 11 cents lower at $204.93. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. Export sales of beef were reported at 9,854 MT, a 10.1% drop from last week but 37.9% larger than last year. Actual exports totaled 16,137 MT, 18.72% larger than last year. Cash trade was fairly quiet, with a few light reports of $114-115 sales.

Jun 18 Cattle closed at $104.400, down $1.050,

Aug 18 Cattle closed at $101.775, down $1.025,

Oct 18 Cattle closed at $105.250, down $0.500,

May 18 Feeder Cattle closed at $136.400, up $1.500

Aug 18 Feeder Cattle closed at $143.300, down $0.050

Sep 18 Feeder Cattle closed at $143.100, down $0.200

Lean Hogs

Lean hog futures were one of the bright spots in the commodity complex on Thursday, with most contracts steady to 55 cents higher. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 70 cents at $74.11 on Thursday afternoon. The rib was the main cause, down $20.50 in one day. The national base hog weighted average price was a penny lower at $64.78 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017. Pork sales for export were shown at 20,610 MT in the USDA report this morning. That was down 6% wk/wk but 17.3% larger yr/yr. Shipments were tallied at 25,064 MT, 14.6% above the same week in 2017.

Jun 18 Hogs closed at $74.825, up $0.225,

Jul 18 Hogs closed at $76.775, up $0.550

Aug 18 Hogs closed at $75.350, up $0.325

Cotton

Cotton futures posted strong gains of 50 to 150 points in most contracts on Thursday. The dollar provided a little support, down 229 points. This morning’s USDA Export Sales report indicated that just 50,664 RB of old crop upland cotton were sold for export in the week of May 17. That was a MY low, but still more than 3 times larger than the same week last year. New crop sales were reported at 152,178 RB. Exports of upland cotton have remained at a high pace at 402,955 RB, 21% larger than the same week in 2017. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton closed at 87.460, up 50 points,

Oct 18 Cotton closed at 86.300, up 109 points

Dec 18 Cotton closed at 85.550, up 150 points

Ag Market Commentary

Corn futures were weak into the close on Thursday, down 3 to 4 1/4 cents lower in the front months. Traders were taking money off the table ahead of the extended weekend. The USDA reported a private cancelation of 132,000 of grain sorghum to unknown destinations for 17/18 delivery this morning. Their weekly Export Sales report indicated old crop sales in the week of 5/17 at 854,304 MT, in the middle of expectations. That was a 13.33% drop from last week but is still 21.12% larger than the same week last year. New crop sales were tallied at 273,424, exceeding analysts’ estimates. Shipments during that week totaled 1.469 MMT, a slight drop from the previous week. China sold another 2.984 MMT of corn from state reserves on Thursday, totaling 74.89% of the offered amount. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT.

Jul 18 Corn closed at $4.04 1/4, down 4 1/4 cents,

Sep 18 Corn closed at $4.13, down 4 1/4 cents,

Dec 18 Corn closed at $4.22 1/2, down 4 cents

Mar 19 Corn closed at $4.30 3/4, down 3 1/2 cents



Soybean futures closed the day steady to 3 1/2 cents lower on profit taking in front of the Memorial Day holiday. Soymeal was down $3.40/ton, with front month soy oil a point higher. A private export sale to unknown of 264,000 MT of new crop beans was reported through the USDA’s daily reporting system. This morning’s Export Sales report showed a net reduction of 139,450 MT in old crop sales. Pakistan purchased 248,000 MT, with Bangladesh at 173,100 MT, but a cancelation of 894,500 MT to unknown (previously announced) offset that. New crop sales were reported at just 6,889 MT. Export shipments in the week of 5/17 were well above last year totaling 903,873 MT, with 133,200 MT to China. Soy meal sales were shown at 196,873 MT, with a 42,641 MT cancelation for 18/19. Sales of soy oil were tallied at 17,698 MT. Argentina’s Ag Ministry now sees their country’s soybean crop at 36.6 MMT, down 1 from their previous estimate.

Jul 18 Soybeans closed at $10.35 3/4, down 3 1/2 cents,

Aug 18 Soybeans closed at $10.39 3/4, down 3 1/2 cents,

Sep 18 Soybeans closed at $10.42 3/4, down 2 1/4 cents,

Jan 19 Soybeans closed at $10.50 3/4, down 1 1/4 cents,

Jul 18 Soybean Meal closed at $377.30, down $3.40,

Jul 18 Soybean Oil closed at $31.71, up $0.01



Wheat futures also joined in the selloff ahead of the weekend, with winter wheat contracts steady to 4 cents lower. MPLS spring wheat was down 6 to 7 1/4 cents. Export sales of old crop wheat were reported at 112,265 MT this morning, exceeding most expectations. That was 78% larger than a week ago, but down 44.4% from a year ago. Actual exports in the week of 5/17 were tallied at 362,161 MT, just half of the same time last year. Japan purchased 96,870 MT of US and Canadian wheat in their weekly MOA tender on Thursday, with 63,735 MT US origin. Algeria also purchased wheat in a recent tender, totaling 700,000 MT of optional origin. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Jul 18 CBOT Wheat closed at $5.30 1/4, down 3/4 cent,

Jul 18 KCBT Wheat closed at $5.49, down 2 3/4 cents,

Jul 18 MGEX Wheat closed at $6.34 3/4, down 7 1/4 cents



Live cattle futures were down 35 cents to $1.05 on the day. Feeder cattle futures were mostly lower, with May expiring higher at $136.40. The CME feeder cattle index was up $1.01 on May 23 at $134.44. Wholesale boxed beef values were lower this afternoon. Choice boxes were down $1.08 at $229.00, with Select boxes 11 cents lower at $204.93. Week to date FI cattle slaughter was estimated at 479,000 head through Thursday. That is 5,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. Export sales of beef were reported at 9,854 MT, a 10.1% drop from last week but 37.9% larger than last year. Actual exports totaled 16,137 MT, 18.72% larger than last year. Cash trade was fairly quiet, with a few light reports of $114-115 sales.

Jun 18 Cattle closed at $104.400, down $1.050,

Aug 18 Cattle closed at $101.775, down $1.025,

Oct 18 Cattle closed at $105.250, down $0.500,

May 18 Feeder Cattle closed at $136.400, up $1.500

Aug 18 Feeder Cattle closed at $143.300, down $0.050

Sep 18 Feeder Cattle closed at $143.100, down $0.200



Lean hog futures were one of the bright spots in the commodity complex on Thursday, with most contracts steady to 55 cents higher. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 70 cents at $74.11 on Thursday afternoon. The rib was the main cause, down $20.50 in one day. The national base hog weighted average price was a penny lower at $64.78 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.833 million head through Thursday. That is up 7,000 head from last week and 63,000 above the same week in 2017. Pork sales for export were shown at 20,610 MT in the USDA report this morning. That was down 6% wk/wk but 17.3% larger yr/yr. Shipments were tallied at 25,064 MT, 14.6% above the same week in 2017.

Jun 18 Hogs closed at $74.825, up $0.225,

Jul 18 Hogs closed at $76.775, up $0.550

Aug 18 Hogs closed at $75.350, up $0.325



Cotton futures posted strong gains of 50 to 150 points in most contracts on Thursday. The dollar provided a little support, down 229 points. This morning’s USDA Export Sales report indicated that just 50,664 RB of old crop upland cotton were sold for export in the week of May 17. That was a MY low, but still more than 3 times larger than the same week last year. New crop sales were reported at 152,178 RB. Exports of upland cotton have remained at a high pace at 402,955 RB, 21% larger than the same week in 2017. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The AWP was updated to 76.33 cents/lb on Thursday, up 2.24 cents/lb from the previous week.

Jul 18 Cotton closed at 87.460, up 50 points,

Oct 18 Cotton closed at 86.300, up 109 points

Dec 18 Cotton closed at 85.550, up 150 points



Soybeans

Soybean futures closed the day steady to 3 1/2 cents lower on profit taking in front of the Memorial Day holiday. Soymeal was down $3.40/ton, with front month soy oil a point higher. A private export sale to unknown of 264,000 MT of new crop beans was reported through the USDA’s daily reporting system. This morning’s Export Sales report showed a net reduction of 139,450 MT in old crop sales. Pakistan purchased 248,000 MT, with Bangladesh at 173,100 MT, but a cancelation of 894,500 MT to unknown (previously announced) offset that. New crop sales were reported at just 6,889 MT. Export shipments in the week of 5/17 were well above last year totaling 903,873 MT, with 133,200 MT to China. Soy meal sales were shown at 196,873 MT, with a 42,641 MT cancelation for 18/19. Sales of soy oil were tallied at 17,698 MT. Argentina’s Ag Ministry now sees their country’s soybean crop at 36.6 MMT, down 1 from their previous estimate.

Jul 18 Soybeans closed at $10.35 3/4, down 3 1/2 cents,

Aug 18 Soybeans closed at $10.39 3/4, down 3 1/2 cents,

Sep 18 Soybeans closed at $10.42 3/4, down 2 1/4 cents,

Jan 19 Soybeans closed at $10.50 3/4, down 1 1/4 cents,

Jul 18 Soybean Meal closed at $377.30, down $3.40,

Jul 18 Soybean Oil closed at $31.71, up $0.01

Wheat

Wheat futures are steady to 4 1/2 cents higher in most contracts at midday. Sales of old crop wheat were reported at 112,265 MT this morning, exceeding most expectations. That was 78% larger than a week ago, but down 44.4% from a year ago. Japan purchased 96,870 MT of US and Canadian wheat in their weekly MOA tender on Thursday, with 63,735 MT US origin. Algeria also purchased wheat in a recent tender, totaling 700,000 MT of optional origin. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Jul 18 CBOT Wheat is at $5.35 1/2, up 4 1/2 cents,

Jul 18 KCBT Wheat is at $5.55 1/2, up 3 3/4 cents,

Jul 18 MGEX Wheat is at $6.43 1/2, up 1 1/2 cents

Corn

Corn futures are down 2 to 3 cents at midday, as a few traders are taking profits ahead of the extended weekend. The USDA reported a private cancelation of 132,000 of grain sorghum to unknown destinations for 17/18 delivery this morning. Their weekly Export Sales report indicated old crop sales in the week of 5/17 at 854,304 MT, in the middle of expectations. That was a 13.33% drop from last week but is still 21.12% larger than the same week last year. New crop sales were tallied at 273,424, exceeding analysts’ estimates. China sold another 2.984 MMT of corn from state reserves on Thursday, totaling 74.89% of the offered amount. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT. Deral also reduced their estimate.

Jul 18 Corn is at $4.06 1/2, down 2 cents,

Sep 18 Corn is at $4.15, down 2 1/4 cents,

Dec 18 Corn is at $4.24 1/2, down 2 cents

Mar 19 Corn is at $4.32 1/2, down 1 3/4 cents

Cattle

Live cattle futures are mixed on Thursday, with the front months 32.5 to 52.5 cents lower and back months higher. Feeder cattle futures are up 35 cents to $1.375, with May expiring today. The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed this morning. Choice boxes were down $1.07 at $229.01, with Select boxes 14 cents higher at $205.18. Week to date FI cattle slaughter was estimated at 358,000 head through Wednesday. That is 4,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. Export sales of beef were reported at 9,854 MT, a 10.1% drop from last week but 37.9% larger than last year. A few reports of light $114-115 cash trade across the Plains were being reported this morning.

Jun 18 Cattle are at $104.925, down $0.525,

Aug 18 Cattle are at $102.475, down $0.325,

Oct 18 Cattle are at $105.900, up $0.150,

May 18 Feeder Cattle are at $136.275, up $1.375

Aug 18 Feeder Cattle are at $143.875, up $0.525

Sep 18 Feeder Cattle are at $143.650, up $0.350

Soybeans

Soybean futures are showing fractional gains at the moment. Soymeal is down $2.10/ton, with front month soy oil up 3 points. A private export sale to unknown of 264,000 MT of new crop beans was reported through the USDA’s daily reporting system this morning. This morning’s Export Sales report showed a net reduction of 139,450 MT in old crop sales. Pakistan purchased 248,000 MT, with Bangladesh at 173,100 MT, but a cancelation of 894,500 MT to unknown (previously announced) offset that. New crop sales were reported at just 6,889 MT. Soy meal sales were shown at 196,873 MT, with a 42,641 MT cancelation for 18/19. Sales of soy oil were tallied at 17,698 MT.

Jul 18 Soybeans are at $10.39 3/4, up 1/2 cent,

Aug 18 Soybeans are at $10.43 1/2, up 1/4 cent,

Sep 18 Soybeans are at $10.45 1/2, up 1/2 cent,

Nov 18 Soybeans are at $10.50 1/4, up 1 1/2 cents,

Jul 18 Soybean Meal is at $378.60, down $2.10

Jul 18 Soybean Oil is at $31.73, up $0.03

Lean Hogs

Lean hog futures are currently a dime to a quarter lower at midday. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 85 cents at $73.96 on Thursday morning. The rib was the main cause, down $23.31 in one day. The national base hog weighted average price was 27 cents higher at $65.06 in the morning. The USDA estimated weekly FI hog slaughter at 1.374 million head through Wednesday. That is down 6,000 head from last week but 48,000 above the same week in 2017. Pork sales for export were shown at 20,610 MT in the USDA report this morning. That was down 6% wk/wk but 17.3% larger yr/yr.

Jun 18 Hogs are at $74.350, down $0.250,

Jul 18 Hogs are at $76.125, down $0.100

Aug 18 Hogs are at $74.925, down $0.100

Cotton

Cotton futures are posting triple digit gains in most contracts at midday. This morning’s USDA Export Sales report indicated that just 50,664 RB of old crop upland cotton were sold for export in the week of May 17. That was a MY low, but still more than 3 times larger than the same week last year. New crop sales were reported at 152,178 RB. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The current AWP of 74.09 cents/lb will be updated later today.

Jul 18 Cotton is at 87.37, up 41 points,

Oct 18 Cotton is at 86.45, up 124 points

Dec 18 Cotton is at 85.4, up 135 points

Mar 19 Cotton is at 84.960, up 133 points

Ag Market Commentary

Corn futures are down 2 to 3 cents at midday, as a few traders are taking profits ahead of the extended weekend. The USDA reported a private cancelation of 132,000 of grain sorghum to unknown destinations for 17/18 delivery this morning. Their weekly Export Sales report indicated old crop sales in the week of 5/17 at 854,304 MT, in the middle of expectations. That was a 13.33% drop from last week but is still 21.12% larger than the same week last year. New crop sales were tallied at 273,424, exceeding analysts’ estimates. China sold another 2.984 MMT of corn from state reserves on Thursday, totaling 74.89% of the offered amount. AgroConsult analysts trimmed their second corn crop estimate for Brazil by 3.2 MMT to 57 MMT. Deral also reduced their estimate.

Jul 18 Corn is at $4.06 1/2, down 2 cents,

Sep 18 Corn is at $4.15, down 2 1/4 cents,

Dec 18 Corn is at $4.24 1/2, down 2 cents

Mar 19 Corn is at $4.32 1/2, down 1 3/4 cents



Soybean futures are showing fractional gains at the moment. Soymeal is down $2.10/ton, with front month soy oil up 3 points. A private export sale to unknown of 264,000 MT of new crop beans was reported through the USDA’s daily reporting system this morning. This morning’s Export Sales report showed a net reduction of 139,450 MT in old crop sales. Pakistan purchased 248,000 MT, with Bangladesh at 173,100 MT, but a cancelation of 894,500 MT to unknown (previously announced) offset that. New crop sales were reported at just 6,889 MT. Soy meal sales were shown at 196,873 MT, with a 42,641 MT cancelation for 18/19. Sales of soy oil were tallied at 17,698 MT.

Jul 18 Soybeans are at $10.39 3/4, up 1/2 cent,

Aug 18 Soybeans are at $10.43 1/2, up 1/4 cent,

Sep 18 Soybeans are at $10.45 1/2, up 1/2 cent,

Nov 18 Soybeans are at $10.50 1/4, up 1 1/2 cents,

Jul 18 Soybean Meal is at $378.60, down $2.10

Jul 18 Soybean Oil is at $31.73, up $0.03



Wheat futures are steady to 4 1/2 cents higher in most contracts at midday. Sales of old crop wheat were reported at 112,265 MT this morning, exceeding most expectations. That was 78% larger than a week ago, but down 44.4% from a year ago. Japan purchased 96,870 MT of US and Canadian wheat in their weekly MOA tender on Thursday, with 63,735 MT US origin. Algeria also purchased wheat in a recent tender, totaling 700,000 MT of optional origin. Russia’s SovEcon trimmed their 18/19 wheat production estimate by 1.2 MMT to 77 MMT.

Jul 18 CBOT Wheat is at $5.35 1/2, up 4 1/2 cents,

Jul 18 KCBT Wheat is at $5.55 1/2, up 3 3/4 cents,

Jul 18 MGEX Wheat is at $6.43 1/2, up 1 1/2 cents



Live cattle futures are mixed on Thursday, with the front months 32.5 to 52.5 cents lower and back months higher. Feeder cattle futures are up 35 cents to $1.375, with May expiring today. The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed this morning. Choice boxes were down $1.07 at $229.01, with Select boxes 14 cents higher at $205.18. Week to date FI cattle slaughter was estimated at 358,000 head through Wednesday. That is 4,000 head larger than last week. Analysts are expecting to see May 1 cattle on feed at 11.535 million head, 4.9% larger than last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. Export sales of beef were reported at 9,854 MT, a 10.1% drop from last week but 37.9% larger than last year. A few reports of light $114-115 cash trade across the Plains were being reported this morning.

Jun 18 Cattle are at $104.925, down $0.525,

Aug 18 Cattle are at $102.475, down $0.325,

Oct 18 Cattle are at $105.900, up $0.150,

May 18 Feeder Cattle are at $136.275, up $1.375

Aug 18 Feeder Cattle are at $143.875, up $0.525

Sep 18 Feeder Cattle are at $143.650, up $0.350



Lean hog futures are currently a dime to a quarter lower at midday. The CME Lean Hog Index was up 34 cents from the previous day to $69.03 on May 22. The USDA pork carcass cutout value was down 85 cents at $73.96 on Thursday morning. The rib was the main cause, down $23.31 in one day. The national base hog weighted average price was 27 cents higher at $65.06 in the morning. The USDA estimated weekly FI hog slaughter at 1.374 million head through Wednesday. That is down 6,000 head from last week but 48,000 above the same week in 2017. Pork sales for export were shown at 20,610 MT in the USDA report this morning. That was down 6% wk/wk but 17.3% larger yr/yr.

Jun 18 Hogs are at $74.350, down $0.250,

Jul 18 Hogs are at $76.125, down $0.100

Aug 18 Hogs are at $74.925, down $0.100



Cotton futures are posting triple digit gains in most contracts at midday. This morning’s USDA Export Sales report indicated that just 50,664 RB of old crop upland cotton were sold for export in the week of May 17. That was a MY low, but still more than 3 times larger than the same week last year. New crop sales were reported at 152,178 RB. China sold another 30,000 MT of cotton offered at an auction of state reserves on Thursday. This could be helpful for the US export market, as they look to bring in bales of higher quality cotton to blend with their lower quality. The Cotlook A index was down 100 points from the previous day to 94.90 cents/lb on May 23. The current AWP of 74.09 cents/lb will be updated later today.

Jul 18 Cotton is at 87.37, up 41 points,

Oct 18 Cotton is at 86.45, up 124 points

Dec 18 Cotton is at 85.4, up 135 points

Mar 19 Cotton is at 84.960, up 133 points



Cattle

Live cattle futures closed $1.20 to $1.90 higher, though June was up 55 cents while waiting for cash market indications. Feeder cattle futures saw gains of $1.925 to $2.625, with May up 95 cents (it expires today). The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed on Wednesday afternoon. Choice boxes were up 73 cents at $230.08, with Select boxes 82 cents lower at $205.04. Week to date FI cattle slaughter was estimated at 358,000 head through Wednesday. That is 4,000 head larger than last week. Analysts are expecting to see April feedlot marketings at an average of 1.805 million head, which is 6% larger than the same month last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. None of the 225 head offered on FCE’s online auction were sold on Wednesday. A few low ball bids of $108 and $175 have been reported in NE so far on Wednesday, with no sales yet.

Soybeans

Soybean futures are trading 6 to 6 cents higher this morning. They saw 8 to 9 1/2 cent gains in most contracts on Wednesday. Soymeal were up $3.20/ton, with front month soy oil 19 points higher. The average trade guess for old crop soybean export sales is for net reductions of 200,000 to sales of 400,000 MT. There were some large cancellations announced previously. New crop sales are seen at 200,000-400,000 MT. Soy meal sales are expected at 100,000-500,000 MT, with soy oil at 8,000-30,000 MT. Ports in Argentina are expected to be shut down today due to a strike. Brazil is still seeing trucking disruptions, encouraging China to look back toward the US.

Lean Hogs

Lean hog futures were 67.5 cents to $1.475 in the green on Wednesday, ignoring the bearish Cold Storage stocks data. The CME Lean Hog Index was up 33 cents from the previous day to $68.69 on May 21. The USDA pork carcass cutout value was down $1.33 at $74.81 on Wednesday afternoon. The national base hog weighted average price was 4 cents lower at $64.73 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.374 million head through Wednesday. That is down 6,000 head from last week but 48,000 above the same week in 2017.

Cotton

Cotton futures are trading 40 to 100 points higher this morning. They finished the Wednesday session mixed. Nearby July was down 39 points, with other contracts higher. The US dollar index was up 360 points, causing a little pressure for July. The weekly Export Sales report will be released at 7:30 am CDT this morning. China sold another 30,000 MT of cotton offered at an auction of state reserves on Wednesday. The Cotlook A index was up another 145 points from the previous day to 95.90 cents/lb on May 22. The current AWP of 74.09 cents/lb will be updated on Thursday.

Ag Market Commentary

Corn futures are currently 2 cents higher after settling 2 to 3 3/4 cents lower on Wednesday. Estimates ahead of this morning’s Export Sales report are showing 0.7-1.1 MMT in old crop corn sales, with 100,000-250,000 MT in new crop sales. The weekly EIA report showed that 1.028 million barrels per day of ethanol production in the week that ended 5/18. That was a 30,000 bpd drop from the previous week. Ethanol stocks grew to 22.129 million barrels, up 624,000 barrels from the week prior despite the reduced production.



Soybean futures are trading 6 to 6 cents higher this morning. They saw 8 to 9 1/2 cent gains in most contracts on Wednesday. Soymeal were up $3.20/ton, with front month soy oil 19 points higher. The average trade guess for old crop soybean export sales is for net reductions of 200,000 to sales of 400,000 MT. There were some large cancellations announced previously. New crop sales are seen at 200,000-400,000 MT. Soy meal sales are expected at 100,000-500,000 MT, with soy oil at 8,000-30,000 MT. Ports in Argentina are expected to be shut down today due to a strike. Brazil is still seeing trucking disruptions, encouraging China to look back toward the US.



Wheat futures are 2 to 8 cents higher this morning, with the most price movements in the nearby Chicago SRW contracts. They posted gains of 9 to 11 1/4 cents in most contracts on Wednesday. Rains pushing their way through the Northern Plains are slowing any planting that is left in the area. The 6-10 day outlook shows warmer temperatures on the way for most of the Plains over the next week, providing a little support for the drought stressed HRW. Analysts are looking for net reductions of 100,000 MT to sales of 100,000 MT for old crop wheat export sales during the week of 5/17. New crop sales are expected to be in the range of 100,000-400,000 MT. That would be an improvement over last week’s total sales of 193,738 MT.



Live cattle futures closed $1.20 to $1.90 higher, though June was up 55 cents while waiting for cash market indications. Feeder cattle futures saw gains of $1.925 to $2.625, with May up 95 cents (it expires today). The CME feeder cattle index was up 2 cents on May 22 at $133.43. Wholesale boxed beef values were mixed on Wednesday afternoon. Choice boxes were up 73 cents at $230.08, with Select boxes 82 cents lower at $205.04. Week to date FI cattle slaughter was estimated at 358,000 head through Wednesday. That is 4,000 head larger than last week. Analysts are expecting to see April feedlot marketings at an average of 1.805 million head, which is 6% larger than the same month last year. The Cattle on Feed report is scheduled for Friday morning at 11 AM CDT. None of the 225 head offered on FCE’s online auction were sold on Wednesday. A few low ball bids of $108 and $175 have been reported in NE so far on Wednesday, with no sales yet.



Lean hog futures were 67.5 cents to $1.475 in the green on Wednesday, ignoring the bearish Cold Storage stocks data. The CME Lean Hog Index was up 33 cents from the previous day to $68.69 on May 21. The USDA pork carcass cutout value was down $1.33 at $74.81 on Wednesday afternoon. The national base hog weighted average price was 4 cents lower at $64.73 in the afternoon. The USDA estimated weekly FI hog slaughter at 1.374 million head through Wednesday. That is down 6,000 head from last week but 48,000 above the same week in 2017.



Cotton futures are trading 40 to 100 points higher this morning. They finished the Wednesday session mixed. Nearby July was down 39 points, with other contracts higher. The US dollar index was up 360 points, causing a little pressure for July. The weekly Export Sales report will be released at 7:30 am CDT this morning. China sold another 30,000 MT of cotton offered at an auction of state reserves on Wednesday. The Cotlook A index was up another 145 points from the previous day to 95.90 cents/lb on May 22. The current AWP of 74.09 cents/lb will be updated on Thursday.