AgriCharts Market Commentary

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Corn

June 21, 2018

Corn futures ended the Thursday session with most contracts 2 to 3 cents higher. This morning's USDA Export Sales report indicated that just 165,917 MT of old crop corn was sold in the week that ended June 14, well below estimates. That was lowest weekly sales total since the week of December 28. There was 584,700 MT reported in reductions for unknown destinations. New crop sales totaled 339,692 MT. Export shipments of corn were shown at 1.763 MMT, a 25.4% jump from last week and well above last year at this time. China sold 1.418 MMT of corn from state reserves on Thursday, totaling 35.6% of the offered amount. Two separate South Korean importers purchased a total of 126,000 MT of corn in tenders on Thursday. Of the total 60,000 MT was likely from the US and the remaining optional origin.

Jul 18 Corn closed at $3.57, up 2 3/4 cents,

Sep 18 Corn closed at $3.66 1/2, up 2 3/4 cents,

Dec 18 Corn closed at $3.78 1/4, up 2 1/2 cents

Mar 19 Corn closed at $3.87 3/4, up 2 1/2 cents

Soybeans

June 21, 2018

Soybean futures saw losses of 9 to 10 cents in most front months on Thursday. Front Month soy meal was down $1.40/ton, with soybean oil 18 points in the red. Uncertainty over the ongoing US-China trade dispute is still weighing on the market. Old crop soybean export sales for the week of 6/14 totaled 301,745 MT, edging into traders estimates. That was better than the same week last year. The Netherlands purchased 240,300 MT, with most switched from unknown destinations. China canceled 66,000 MT. Sales of new crop soybeans totaled 227,605 MT. Export shipments of soybeans totaled 992,047 MT, well above last year and 66.1% larger than last week. Soy meal sales were tallied at 120,106 MT, as 18,777 MT was reported for soy oil. Argentina's soybean production is now seen at 37.2 MMT, 600,000 MT higher than the previous estimate.

Jul 18 Soybeans closed at $8.80 1/2, down 9 cents,

Aug 18 Soybeans closed at $8.85 1/2, down 9 cents,

Sep 18 Soybeans closed at $8.91 1/4, down 9 cents,

Jan 19 Soybeans closed at $9.10 1/2, down 9 1/2 cents,

Jul 18 Soybean Meal closed at $331.80, down $1.40,

Jul 18 Soybean Oil closed at $29.19, down $0.18

Wheat

June 21, 2018

Wheat futures were steady to a penny higher in MPLS contracts on Thursday, with KC up 4 to 5 and CBT 6 to 7 cents in the green. The USDA reported all wheat export sales in the week of June 14 at 461,633 MT, on the higher end of expectations. That was 23.6% larger than the same week last year and a jump of 52.7% from a week ago. The Philippines purchased 137,000 MT, with Japan buying 118,500 MT. Weekly exports were up 37.71% from the week prior at 426,920, which was still 31,63% below the same week last year. In Japan's weekly MOA tender, they purchased 91,188 MT of combined US (65,943 MT) and Australian wheat on Thursday. Consultant Agritel is projecting Russia's 2018 wheat crop to drop to 67.4 MMT. That is on the lower end of most estimates, compared to the USDA's 68.5 MMT.

Jul 18 CBOT Wheat closed at $4.95 1/4, up 7 cents,

Jul 18 KCBT Wheat closed at $4.93 1/4, up 4 1/2 cents,

Jul 18 MGEX Wheat closed at $5.52 3/4, unch,

Cattle

June 21, 2018

Live cattle futures closed the Thursday session with most contracts 27.5 to 52.5 cents in the red. Feeder cattle futures were down 60 to 95 cents on the day. The CME feeder cattle index was up 80 cents from the previous day at $142.21 on June 20. Wholesale boxed beef values were mixed on Thursday afternoon. Choice boxes were down 88 cents to $217.41, with Select boxes 56 cents higher at $201.61. That tightened the Ch/SE spread to $15.80. USDA estimated FI cattle slaughter at 478,000 head through Thursday. That is 10,000 head above last week and the same time last year. June 1 cattle on feed is expected to be seen at 11.47 million head, 3.4% above last year. Beef export sales in the week of June 14 were reported at 16,716 MT. Exports totaled a MY high 18,640 MT. Yesterday's FCE auction saw sales of $110, with bids still reported in the $108 area on Thursday.

Jun 18 Cattle closed at $108.650, down $0.375,

Aug 18 Cattle closed at $106.125, down $0.525,

Oct 18 Cattle closed at $109.000, down $0.275,

Aug 18 Feeder Cattle closed at $148.475, down $0.950

Sep 18 Feeder Cattle closed at $149.250, down $0.700

Oct 18 Feeder Cattle closed at $149.025, down $0.600

Lean Hogs

June 21, 2018

Lean hog futures settled the day with 25 to 57.5 cent gains on Thursday. The CME Lean Hog Index was up another $1.09 to $85.14 on June 19. The USDA pork carcass cutout value was reported at $85.04 on Thursday afternoon, up 16 cents. The national base carcass price was down 81 cents in the Thursday PM report, averaging $81.74. The USDA estimated FI hog slaughter at 1.744 million head so far this week. That is down 38,000 head from last week on lower Monday slaughter but up 9,000 head from a year ago. Export sales of pork were reported at 9,562 MT this morning. Export shipments of pork in the week of 6/14 totaled 19,477 MT.

Jul 18 Hogs closed at $80.475, up $0.450,

Aug 18 Hogs closed at $75.725, up $0.575

Oct 18 Hogs closed at $61.525, up $0.250

Cotton

June 21, 2018

Cotton futures posted steady to slightly mixed trade on Thursday. This morning's USDA Export Sales report showed a net cancellation of 112,393 RB in old crop upland cotton. China was shown to purchase 31,700 RB, while most of the cancellations were from Vietnam (68,300 RB), Indonesia (40,500 RB) and Hong Kong (26,400 RB). New crop sales of upland cotton were tallied at 296,407 RB, with China buying 211,700 RB. Export shipments of upland cotton were at just 312,768 RB. That was a drop of 32% from a week ago, but still 20.56% above this week in 2017. The Cotlook A index was down anther 395 points from day prior at 93.00 cents/lb on June 20. The weekly AWP was updated to 78.23 cents/lb for this next week, down 476 points from the week prior.

Jul 18 Cotton closed at 83.210, unch,

Oct 18 Cotton closed at 85.300, down 6 points

Mar 19 Cotton closed at 83.960, down 3 points


Market Commentary provided by:

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