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Corn futures are starting Friday 1 to 1 3/4 lower, with little fresh overnight news. The US and China contiue to make posturing statements, but the background concern negative GDP growth in China and how they turn that around. Corn futures were 1 to 1 3/4 cents lower on Thursday. USDA’s weekly update to Export Sales showed 33.652 mbu of corn sold. That came via 34.8 mbu of old crop corn bookings and 1.2 mbu of net reductions in new crop sales. Accumulated commitments were 1.55 bbu through week 37, via 1.05 billion shipments and 0.5 billion unshipped sales. The Export Sales report also showed Sorghum exports were 83,100 MT, with the 131,500 MT to China offset by reductions to Japan. China also booked 32,000 MT of 2020/21 sorghum.

--- provided by Brugler Marketing & Management



Soybeans are trading 2 to 3 cents lower this morning, extending losses from Thursday. Old crop futures closed Thursday down by double digits. Yesterday, new crop beans were also lower, down by 4 1/2 to 8 1/2 cents. July soybean meal futures were down $3/ton. Front month soy oil closed 23 to 25 points lower. Malaysian palm oil futures (July) closed 50 ringgits higher at 2,226. USDA’s Export Sales update showed 1.2 MMT of old crop soybeans were sold in the week ending May 14. New crop sales added 464,000 MT to the total for a 29 week high in combined soybean export bookings. Of the week’s sales, 61% were to China. Soymeal sales were 198,820 MT, for the week ending May 14. Bean oil bookings were 62,081 MT on the week, with big sales to South Korea and China.

--- provided by Brugler Marketing & Management



The Friday session starts with 3 to 7 cent per bushel losses across the three wheat futures markets. Chicago SRW is the weakest. The winter wheat markets were higher on Thursday, with SRW up the most. Chicago wheat gained 2 1/4 to 4 1/4 cents, HRW wheat was 1 1/4 to 2 1/4 cents stronger. Spring wheat futures were down by 1 to 3 cents on Thursday. The Virtual Kansas Wheat Tour’s estimate for the state’s production was 284.4 mbu (USDA @ 306 mbu), from an average yield of 44.5 bpa. Regionally, the yields were 32.9 bpa for the South West region, a 42.5 bpa average yield for West Central KS, the NW region was forecasted to yield 51.7 bpa, and the NC region’s yield @ 41.1 bpa. The wheat tour noted dryness, especially in the western regions. Old crop wheat export bookings from the week ending May 14 were 175,815 MT. That was down 13.4% wk/wk but was 263% above the same week last year. Of the old crop sales 46.5% were HRS variety. HRS wheat commitments through the MY so far are 30% of all wheat and 105% of the USDA forecast. All wheat shipments on the week were 13.5 mbu, which put the MYTD exports at 851.1 mbu, which with 3 weeks left is 87.7% of the USDA forecast. Russia’s IKAR lowered their forecast for 2020/21 production by 1 MMT to 76.2 MMT. South Korea purchased 89,000 MT of U.S. wheat.

--- provided by Brugler Marketing & Management



Live cattle futures closed 7 to 40 cents higher on Thursday. The deferred contracts rebounded from midday lows. May feeders expired at $126.02, the other front months were down 12 to 37 cents. The one day lagged Feeder Cattle Index from CME was 19 cents lower on convergence, at $126.60. The Cattle on Feed report is set to update April numbers at 2pm central. Analysts expect a decrease in cattle on feed from May ‘19. April Marketings are expected to be way down due to packer shutdowns, the estimate is 1.448m head (-14.95%). Placements are also expected to be lower from lack of cattle leaving feed lots. The average trade guess is 1.426m (-12.6%) head placed. USDA reported cash sales from Thursday were $115-$120, with the bulk $115-$117. Wholesale boxed beef prices were lower on Thursday. The Choice/Select spread was widened to $19.28 as Choice boxes were down by $2.23 and Select boxes were $8.65 lower. Beef stocks in cold storage on April 30 were 490 million lbs. That was still up 13.9% from April ’19, but 2.5% below March stocks. Traders had been expecting a larger draw down in the USDA report. WTD FI cattle slaughter was estimated at 397,000 head through Thursday.

--- provided by Brugler Marketing & Management



Nearby lean hog futures were up $0.72 to $2.47, while the deferred contracts fell back by 15 to 77 cents. The 05/19 CME Lean Hog index was another $1.06 lower to $65.98. USDA’s National Average Base Hog price was 41 cents lower to $37.91 on Thursday. Pork export sales were negative for the week ending May 14. Pork export shipments on the other hand were up 128% wk/wk as 49,714 MT were shipped. That was the largest figure since the week ending November 14, and 4th highest all time. The National Pork Carcass Cutout Value was $97.85 on Thursday, down by $2.07. USDA’s monthly update to Cold Storage pork stocks showed 614.8m lbs in inventory. That was 1.1% below last year, and 0.3% lower than March 31. Belly stocks (raw material for bacon) in April were 2.05m lbs above March, at 90.9m lbs. That was a 6 year high for the month. USDA estimated WTD hog slaughter at 1.580m head through Thurs.

--- provided by Brugler Marketing & Management



Cotton traders have the futures market 31 to 75 points lower this morning after Thursday’s mild losses. There was a broad sell off overnight across many commodities from energies to grains to softs. Yesterday, cotton closed 4 to 15 points in the red. Dec to Mar ’21 carry was 77 points, 2 points weaker on the day. USDA’s weekly Export Sales report data showed cotton bookings were down 25% wk/wk to 249,112 RBs sold. The sales were split 128,898 RBs old crop and 120,214 RBs of 2020/21 cotton. The Cotlook A index for May 20 was up 130 points to 67.35c/lb. The updated AWP for the week is 48.01 cents/lb, up 65 points. The LDP at 3.99 cents/lb for the week.

--- provided by Brugler Marketing & Management



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