Ag Market Commentary

Corn futures added to sell off overnight, dropping another 6 cents per bushel. Corn futures lost 10 1/4 to 14 1/2 cents on Wednesday. Analysts anticipate corn bookings in today’s USDA Export Sales update to be between 0.7-1.5 MMT. EIA data showed a 28k bpd production increase as ethanol producers averaged 941,000 bpd on the week ending 10/23. Ethanol stocks were drawn down 120k barrels @ 19.601 million barrels. Spot DDG prices were listed from $145 (W. IA) to $210/ton (KS) from the week ending 10/23.

--- provided by Brugler Marketing & Management



Following Wednesday’s sell off, soy futures traded another 2 to 5 cents lower overnight. At the close Wednesday, soybean futures were 15 1/4 to 25 cents weaker. Soymeal futures closed $6.80 to $7.80/ton lower. Soybean oil futures were 59 to 69 points weaker to round out the complex. Ahead of the Export Sales report, traders are expecting 1-2 MMT of soybean sales for the week ending 10/22. Soymeal sales are anticipated to be between 100-450k MT. BO ideas are running 5,000-40,000 MT. Official EU import data shows 4.47 MMT of beans were brought into the trade bloc (plus Britain) from July 1 to October 25. That is a 4% increase from last year’s import pace.

--- provided by Brugler Marketing & Management



Starting the Thursday session wheat futures are 2 to 9 cents lower, with Minneapolis firmer than the others. Yesterday wheat markets were lower from spillover corn weakness and rain forecasts in HRW country. SRW country will also get wetter from the remnants of Hurricane Zeta. CBT SRW was down 7 to 9 cents on the board Wednesday, HRW prices were down 5 3/4 to 6 1/4 cents, and Spring wheat closed 8 to 9 1/2 cents lower. Analysts are projecting USDA’s Export Sales report will show 200k to 700k MT of wheat sales last week. South Korea purchased 105,800 MT of wheat yesterday, including 77.900 MT U.S. origin and the remaining 27.9k from Canada.

--- provided by Brugler Marketing & Management



Live cattle futures were 32 to 67 cents higher on Wednesday, swimming against the bearish current in the ag commodities. October fats ended the day a dollar stronger @ $105.85. Feeder cattle maintained the triple digit gains, closing $1.47 to $1.60 higher in the front months. October feeders were a $1.85 premium to the Index. They expire today. The 10/27 CME Feeder Cattle Index was $133.32, down by 32 cents. USDA confirmed cash sales for the week are just 3.2% of last week’s activity. The wide range is from $101 to $106.25, but USDA reported the average for the 988 head sold at $101.54. The FCE online auction sold 1,275 of the 2,012 head listed, with a wtd average price of $105.95. USDA’s wholesale boxed beef prices were mixed again in the PM update - tightening the Chc/Sel spread to $16.21. Choice boxes were down 91 cents, and Select boxes were 91 cents higher. USDA estimates the week’s cattle slaughter at 350,000 head through Wednesday. That is 10,000 head lower wk/wk but up 3,000 from the same week last year.

--- provided by Brugler Marketing & Management



Lean hog futures closed with losses of $1.15 to $1.85. The 10/26 CME Lean Hog Index fell back another 70 cents to $77.47. USDA’s National Average Base Hog price was $61.76 in the PM update, down by 80 cents. The National Pork Carcass Cutout value fell by $4.13 cwt. in the PM update, @ $84.52. Hams and Picnics were a little stronger, but the other primals fell significantly – led by a $22.31 cwt. drop in bellies. USDA estimates the week’s FI hog slaughter at 1.471 million head through Wednesday. That compares to 1.457 million head last week and 1.459 million from the same week last year.

--- provided by Brugler Marketing & Management



Cotton futures followed the Wednesday triple digit losses with 32 to 46 points losses overnight. Wednesday cotton trading pushed futures 140 to 186 points lower. For Dec futures that was the largest move since a 2.49 cent drop on 8/07. USDA’s Spot Cotton Quotations report showed 3,045 bales sold at an average price of 65.42 cents/lb on 10/28. The week’s sales on The Seam were 5,031 bales at a wtd average price of 67.67 cents/lb through Tuesday. The Cotlook A index for the 27th was 95 points higher at 78.35 cents/lb. The AWP for cotton is 55.71 cents/lb, good through tomorrow.






Market Commentary provided by:

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