Ag Market Commentary

Corn futures are steady to fractionally higher in most nearby contracts at midday. The USDA reported a private export sale of 123,000 MT of 17/18 corn to Unknown Destinations through their daily reporting system this morning. The weekly EIA report showed that US ethanol plants produced 1.016 million barrels of ethanol per day during the week of Feb 9. That was down 41,000 bpd from the previous week. Stocks of ethanol fell 604,000 barrels during that week to 22.885 million barrels. Analysts estimates for Thursday’s USDA Export Sales report are running 1 – 1.5 MMT for old crop sales during the week of Feb 8, with 0-100,000 MT seen for new crop.

Mar 18 Corn is at $3.67 1/4, up 1/2 cent,

May 18 Corn is at $3.74 1/4, unch ,

Jul 18 Corn is at $3.82 1/4, up 1/4 cent

Sep 18 Corn is at $3.88 1/2, unch

Soybean futures are trading 2 to 2 1/4 cents in the green on Wednesday. Meal futures are up $1.10/ton, with nearby soy oil 9 points higher. The CME group hiked meal margin requirements from $1000 to $1200. Analysts are expecting Thursday’s NOPA report to show 165.511 mbu of soybeans were crushed during January. That would be 3.04% larger than the same time month last year. Soy oil stocks at the end of January are seen at 1.603 billion pounds, which would be above December but below last January. The USDA is expected to show 450,000-750,000 MT in old crop soybean export sales in Thursday’s report, with 0-100,000 MT for new crop. There is also 150,000-450,000 MT seen for soy meal sales and 10,000-30,000 MT expected for sales of soy oil.

Mar 18 Soybeans are at $10.13 3/4, up 2 cents,

May 18 Soybeans are at $10.24 1/2, up 2 1/4 cents,

Jul 18 Soybeans are at $10.34, up 2 cents,

Aug 18 Soybeans are at $10.35 1/2, up 2 cents,

Mar 18 Soybean Meal is at $366.30, up $1.10

Mar 18 Soybean Oil is at $31.66, up $0.09

Wheat futures are showing 4 to 6 cent losses in most CBT and KC contracts at midday. MPLS is steady to 2 cents lower. The CME Group raised margin requirements for KC HRW by $150 and increased margins for CBT wheat by $50. The average trade guess for Thursday’s Export Sales report is for all wheat sales to total 200,000-450,000 MT for the week that ended Feb 8. The US isn’t the only one have trouble exporting. France AgriMer cut projected 2017/18 French exports and raised projected soft wheat carryover to 3.25 MMT today from 2.9 MMT.

Mar 18 CBOT Wheat is at $4.54 3/4, down 6 cents,

Mar 18 KCBT Wheat is at $4.70, down 4 1/2 cents,

Mar 18 MGEX Wheat is at $6.01, down 3/4 cent

Live cattle futures are 22.5 to 82.5 cents higher on Wednesday. Feeder cattle futures are up 90 cents to $1.075 in the front months. The CME feeder cattle index was down 6 cents on February 12 at $147.57. Wholesale boxed beef values were mixed on Wednesday morning. Choice boxes were up 9 cents at $207.45, with Select boxes down 50 cents at $202.63. Estimated weekly FI cattle slaughter was 227,000 head through Tuesday. That was down 3,000 from the previous week but 1,000 head more than the same week last year. Cash cattle trade has yet to develop for the week, as this morning’s FCE online auction saw no sale on the 255 head offered. There was one lot that passed on an offer of $124.

Feb 18 Cattle are at $127.600, up $0.775,

Apr 18 Cattle are at $125.600, up $0.825,

Jun 18 Cattle are at $117.275, up $0.625,

Mar 18 Feeder Cattle are at $148.225, up $0.950

Apr 18 Feeder Cattle are at $150.575, up $1.075

May 18 Feeder Cattle are at $151.225, up $0.900

Lean hog futures are up $1.55 to $1.625 in most nearby contracts, with expiring Feb up 15 cents. The CME Lean Hog Index on February 12 was $74.30, down 42 cents from the previous day. The USDA pork carcass cutout value was 30 cents lower at $77.20 in the Wednesday AM report. The belly was the only cut reported higher. The national base hog weighted average price was down 73 cents at $67.00 Wednesday morning. The USDA estimated week to date FI hog slaughter at 924,000 through Tuesday. That is down 3,000 head from the previous week but 52,000 head more than the same time last year.

Feb 18 Hogs are at $73.500, up $0.150,

Apr 18 Hogs are at $70.975, up $1.550

May 18 Hogs are at $76.750, up $1.625

Cotton futures are trading 56 to 91 points in the red on Wednesday, despite another round of sharp losses in the US dollar. The National Cotton Council estimates that the US 17/18 export number will reach 15 million bales. That is 500,000 bales more than the USDA has projected after lowering its estimate last week. The USDA Adjusted World Price or AWP currently at 69.45 cents/lb will be updated on Thursday. The Cotlook A index on February 13 was 87.35 cents/lb, down 20 points from the previous day. Cash sales reported on the Seam were shown at 6,295 bales on Tuesday, with the average price down 190 points from the previous day at 67.11 cents/lb.

Mar 18 Cotton is at 75.47, down 91 points,

May 18 Cotton is at 76.8, down 60 points

Jul 18 Cotton is at 77.86, down 56 points

Market Commentary provided by:

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