AgriCharts Market Commentary


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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

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

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

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

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


Market Commentary provided by:

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