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May 2012 Archive for Market Watch

RSS By: Alan Brugler, AgWeb.com

Alan Brugler is the President of Brugler Marketing & Management, and the primary analyst and advisor.

In Memory of the Bulls

May 25, 2012

Brugler

Market Watch with Alan Brugler

May 25, 2012

In Memory of The Bulls

 

Every commodity on our tracking list was in the red this week, showing a loss from the previous Friday close. Since it is Memorial Day weekend, it might be fitting to also remember the brave bulls who got us to $7.99 corn in 2011 and $15.09 soybeans in 2012. They are gone but not forgotten. Why are they gone? Global growth is tepid at best, the dollar is strong because the bond vigilantes are currently pointing their weapons at Europe. Production of some commodities (corn, hogs, soybeans) is also expected to be larger in 2012/13. Crude oil and gold are also down because of the above factors, and the CRB Index tells us that a basket of all commodities is down nearly 50% from the all time high in April 2011. Lest the above seem too bearish, we would point out that the CRB Index is near that 50% retracement support, and a dose of 90-100 degree temps or marked dryness in June and early July could thaw out the grain bulls and get them running again.

It was a tough week for nearby corn futures, which lost 9% for the week. The bulk of that occurred on Thursday. Weekly export sales were poor. There are reports of cheap new crop Brazilian corn offered as much as 60 cents per bushel below US Gulf corn at the beginning of the week. The futures slide should have narrowed the gap. The International Grains Council also increased their projection of world production in 2012/13 by 13 MMT from the previous figure.  On a bullish note, wheat futures are now high enough to remove themselves from feed ration consideration unless basis is extremely weak. US export sales commitments are now 88% of the projection for the year. They should be 92-93% by now in order to avoid a future downward revision by WASDE.

Soybeans were down 1.6% for the week, held down by a 2.06% loss in soybean meal. Production estimates for Argentina continue to leak lower, with 39.9 MMT the latest entry from the Buenos Aires Exchange. Chinese buying slacked off, but their estimated imports for May are record large at 7.23 MMT from all sources. They likely just need some logistics space. The Chinese government sold a few beans from reserves. Demand was modest, but some of the beans were reportedly several years old and the main motivation was stocks rotation. US weekly export sales were still solid at 953,700 MT. Cumulative export inspections continue to gain on year ago, due to a stronger 3Q export program.

The three wheat markets all lower. SRW was the weakest as profit taking hit the market after the 98 cent rally of the previous week. KC and MPLS were down 0.7%, supported by hot and mostly dry conditions in key Kansas production areas. Winter wheat crop condition ratings were down again this past week, and are expected to decline further on Tuesday. The Brugler500 index for the winter wheat crop was 353 after the USDA condition ratings came out. That was down from 355 the previous week. HRW ratings were down 7 points at 341. Export sales commitments are at 101% of the USDA sales total for the year. They are typically at 105% by now. The marketing year ends May 31. Weekly export sales were stronger than trade estimates coming into the report. World production estimates are shrinking, with the International Grains Council trimming estimated global production 5 MMT to 371 MMT.

Nearby cotton futures lost 5.6% for the week. Some of the decline was due to traders front running the index funds. Most of the big ones get out of their long July futures positions between May 24 and June 11. So, other traders want to sell first. India continues to undercut US sales into Asia, although China was still the largest single buyer in this week’s weekly Export Sales report. The bull story is that US old crop export commitments are 109% of the USDA projection for the year. They typically would be 103% at this time, so there is extra cushion for USDA to hike the final number, or for the market to tolerate a few cancellations or deferrals. The strong dollar is a problem for all commodities priced in dollars.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

05/04/12

05/11/12

05/18/12

05/25/12

Change

% Change

July

Corn

$6.20

$5.81

$6.36

$5.79

($0.57)

-8.97%

July

CBOT Wheat

$6.10

$5.97

$6.95

$6.80

($0.15)

-2.19%

July

KCBT Wheat

$6.27

$6.10

$7.05

$7.00

($0.05)

-0.71%

July

MGEX Wheat

$7.44

$7.26

$7.92

$7.86

($0.06)

-0.73%

July

Soybeans

$14.75

$14.06

$14.05

$13.82

($0.23)

-1.64%

July

Soybean Meal

$432.60

$408.50

$417.90

$409.30

($8.60)

-2.06%

July

Soybean Oil

$53.65

$52.24

$50.32

$50.12

($0.20)

-0.40%

Jun

Live Cattle

$115.38

$115.15

$119.53

$117.65

($1.88)

-1.57%

Aug

Feeder Cattle

$158.10

$157.45

$160.70

$158.50

($2.20)

-1.37%

June

Lean Hogs

$83.72

$85.30

$87.43

$85.20

($2.22)

-2.55%

July

Cotton

$87.99

$78.97

$77.99

$73.62

($4.37)

-5.60%

July

Oats

$3.40

$3.32

$3.40

$2.96

($0.44)

-12.87%

July

Rice

$15.21

$15.71

$15.18

$14.51

($0.67)

-4.42%

 

Cattle futures were down 1.6% for the week despite another solid performance by both the wholesale and cash cattle markets. Cash cattle trade was still well above the futures, with the 5-area Direct weekly average at $122.50, and $193.50 in the dressed. Estimated carcass weights are now 14 pounds above last May’s actual.  They had been running 27 pounds high earlier in the spring. Estimated beef production for the week was down 5.68% from the same week in 2011. Year to date production is now down 4.8% from last year. Weekly export sales for beef were an OK 14,400 MT, held back a little bit by the firmer US dollar. Wholesale prices did rise 1.1% for the week, with choice boxes up $2.12 but Select down $1.10 on a Friday/Friday comparison.

Lean Hog futures lost 2.55% for the week. The pork carcass cutout value lost 4.3% on a Friday/Friday basis, keeping downward pressure on packer margins and what they could pay for hogs. Hams and ribs were under major price pressure, with the former down 12.88% for the week. Pork production year to date is up 1.6% from last year. Production this past week was up 1/2% from the same week last year. Carcass weights are estimated at 209 pounds, which would be up 3# from the 2011 actual weight.  

Market Watch: Monday will be a market holiday in the United States, with grain trading resuming on Monday night and livestock trading resuming Tuesday morning at 9 am CDT. Any positions resulting from June grain options expiration on the 25th will be dealt with as futures when trading resumes. The usual USDA Monday reports will be released on Tuesday, including Export Inspections and Crop Progress. Corn planting should be about 99% complete, with soybeans into the low 90’s. The weekly Export Sales report will be delayed until Friday. Friday will also mark the expiration of June live cattle options.

 

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. 

Call 402-697-3623 for information on our individualized subscription and consulting services. Our web site is www.bruglermarketing.com.

 .

 Copyright 2012 Brugler Marketing & Management, LLC

Baking Bread

May 18, 2012

Brugler

Market Watch with Alan Brugler

May 18, 2012

Baking Bread?

 Wheat futures were the story of the week, surging 16.5% in Chicago and 15.6% in KC July. A combination of things drove the rally, including tighter projected world stocks in 2012/13, sub-freezing temps in northern France and Germany that could have damaged some grain, dryness in parts of southern Russia and a huge speculative net short position in wheat just begging to be slapped around. The baking reference comes from the much above normal temps in the Plains, with limited moisture. Winter wheat crop condition ratings dropped, and our work suggests that average yields are now below those utilized by USDA in the May reports. A cold front will bring a little rain and cooler temps into the central US this weekend, but the forecast remains above normal for temperatures through the end of the month. Weekly wheat export sales were stronger than expected, with several old crop cargoes booked despite the need to ship them before May 31 (end of the marketing year).

Corn prices jumped 9.38% in a single week. The cash market just wasn’t getting the corn to move, reflected in strong CIF basis values. Actual weekly export sales weren’t very exciting. Actual shipments are 93 million bushels behind year ago due to competition from feed wheat and DDG exports. Ethanol use is part of the bull story, jumping to a multi-month high this past week while ethanol stocks declined at the same time. Weather gets part of the credit for the rally as well, with hot and dry conditions causing second thoughts about 166 bushel yield estimates. It is early, but if there IS a problem the old crop bird in the hand is worth two in the new crop bush!

Soybeans were down 1 cent after losing 71 cents the prior week and 22 cents the week before. Three weeks equals a losing streak. Profit taking was a big factor after prices topped the $15 mark for the first time since 2008. The strong US dollar index also made prices go up in local currency terms even if they didn’t at the CBOT. USDA reported export sales for the week ending May 10th totaled 616,256 MT for 2011/12 and 57,072 MT for 2012/13 delivery. That was actually bearish because the total was smaller than pre-report estimates. Weekly exports have taken a contra-seasonal jump when compared to at least the past six years. Private exporters announced the sale of another 480,000 MT of soybeans to China for 2011/12 delivery on Thursday under the daily reporting system.

Cotton futures were just plain ugly, falling another 1.24% after being down 10.25% the previous week.  Weekly export sales were again positive. Commitments, which are exports plus outstanding sales, are running 108% of year ago, while usually only 102% at this time of year. USDA said on May 10 that harvested acres should actually be larger than last year, despite a reduction in planting intentions. The global ending stocks forecast also calls for a major jump in ending stocks, and Chinese sources lowered predicted consumption by 1 MMT from previous forecasts. It is tough to sell textiles made from cotton which cost double what it cost the previous year into a global market where the EU is in recession, the US is growing slowly, and Chinese growth is slowing.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

04/27/12

05/04/12

05/11/12

05/18/12

Change

% Change

July

Corn

$6.26

$6.20

$5.81

$6.36

$0.55

9.38%

July

CBOT Wheat

$6.50

$6.10

$5.97

$6.95

$0.98

16.46%

July

KCBT Wheat

$6.59

$6.27

$6.10

$7.05

$0.95

15.57%

July

MGEX Wheat

$7.79

$7.44

$7.26

$7.92

$0.66

9.05%

July

Soybeans

$14.94

$14.75

$14.06

$14.05

($0.01)

-0.07%

July

Soybean Meal

$428.40

$432.60

$408.50

$417.90

$9.40

2.30%

July

Soybean Oil

$55.53

$53.65

$52.24

$50.32

($1.92)

-3.68%

Jun

Live Cattle

$112.85

$115.38

$115.15

$119.53

$4.38

3.80%

May

Feeder Cattle

$148.78

$152.55

$149.70

$151.30

$1.60

1.07%

June

Lean Hogs

$86.60

$83.72

$85.30

$87.43

$2.13

2.49%

July

Cotton

$91.23

$87.99

$78.97

$77.99

($0.98)

-1.24%

July

Oats

$3.42

$3.40

$3.32

$3.40

$0.08

2.41%

July

Rice

$15.26

$15.21

$15.71

$15.18

($0.53)

-3.37%

 

Cattle futures are back to being bullish. Futures were up 3.8% for the week. Beef production YTD is down 3.0% from last year. Estimated production for the most recent week was down 0.8% from the same week in 2011, with slaughter down 21,000 head. Wholesale prices were up 1.8% in the Choice and 1.9% in the Select for the week, giving packers $3 or more to spend on cattle. Cash cattle trade did develop on Friday, with KS reported at $123 and Nebraska at $123.50. Those were up $1.50 to $2.00 from last week. The Friday afternoon USDA Cattle on Feed report was a little bull friendly, showing May 1 cattle on feed numbers at 99.4% of last year. That was the first month since May 2010 where numbers were smaller than the same month a year earlier. Placements were lighter than the average trade guess at 85.2% of last year. Marketings were 100.4% of year ago, a little stronger than some had expected.

Lean Hog futures were up 2.5% this past week. June futures are up $3.83 in two weeks. The pork carcass cutout value rose to $81.48, up 1.15% for the week. Ribs were the hot item, up 8% from the previous Friday. Year to date pork production is up 2.0% from last year. Production this past week was 5.4% larger than the same week in 2011 creating a challenge for packers to move the tonnage. The Cold Storage report on Tuesday will show us how well they were doing when prices were a little lower in April.

Market Watch: Livestock traders will begin the week reacting to Friday evening’s Cattle on Feed report. There is also a monthly Cold Storage report due on Tuesday will be show whether we’re building meat supplies or drawing them down. The Crop Progress report on Monday afternoon will get plenty of attention, particularly the winter wheat and corn crop condition ratings. Corn planting progress is expected to be well into the 90’s. Weekly export sales will get a little attention on Thursday. The May feeder cattle futures and options expire on Thursday. June futures options expire on Friday for the grains. The following Monday is the Memorial Day holiday in the US and the markets will not be open. Thus, Friday will typically be the start of a 4 day weekend for some trying to get a little more time away.

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading.

Visit our website at https://www.bruglermarketing.com or call us at 402-289-2330 for further information.   

Unstable

May 11, 2012

Brugler

Market Watch with Alan Brugler

May 4, 2012

Unstable

While the world is always an unstable place, where you can’t even measure the exact location of an electron, some periods in time seem to offer more instability than others. Ignoring the multiple unstable governments from Afghanistan to Libya to Greece and Syria, a lot of financial situations are unstable as well. JP Morgan announced that it had lost $2 billion on credit default swap derivatives trading, some by a trader who was so heavy handed he was nicknamed the "whale of London". A third commodity hedge fund in about 6 weeks called it quits after sustaining big losses for investors from January to the end of April. Unwinding of the positions of the $500 million Fortress fund created instability in cotton, fueling a limit down move on Thursday. Other markets saw big position shifts as well. And this is all happening on relatively benign growing season weather. Wait until Mother Nature causes problems big enough for the ag commodity traders to take notice!

Corn futures plunged 54 cents per bushel after gaining 9 cents the previous week. The May futures inverse collapsed as basis shifts made delivery a greater risk and the confident longs decided to get out instead. Weekly export sales were miserable at less than half a million metric tonnes. USDA threw out nothing but bearish news on Thursday, raising old crop ending stocks to 851 million bushels and putting likely 2013 leftovers at a cumbersome 1.88 billion bushels. That was accomplished by a projection for record 2012 US production of 14.7 billion bushels on a record average yield of 166 bushels per acre. It is still early, but the estimated cash average range for the 2012/13 marketing year is only $4.20-5.00. Futures are above that, so it takes crop problems (not currently seen) to prevent them from dropping.

Soybeans were down 71 cents for the week after losing 22 cents the week before. Two weeks equals a losing streak. Profit taking was a big factor after prices topped the $15 mark for the first time since 2008. Some new hedge selling was also seen. It would be hard to find a more bullish USDA report day for beans, with old crop ending stocks trimmed to 210 million bushels (OK, 150 million would be more bullish!), and new crop seen shrinking to pipeline levels of 145 million. USDA cut projected South American production again. The Brazil-Argentina-Paraguay crop is now 785 million bushels smaller than last year. It would take 18 million additional acres to replace that production at the US national average yield. Of course, some will come out of carryover stocks and some will come out of 2013 South American production, so the US doesn’t need to fill the entire shortfall.

The three wheat markets were lower. May futures in MPLS had an anomalous double digit rally on Friday that was not matched by the other contracts, accounting for the penny gain shown in the table. US crop condition ratings declined for winter wheat, with the Brugler500 Index at 362 vs. 365 the previous week. That didn’t stop USDA from showing a 2.245 billion bushel crop number on Thursday. HRW production is estimated at 1.032 billion bushels vs. only 780 million last year. Tightening global stocks were supportive to the oversold wheat market. USDA is now projecting ending stocks will shrink to 188 MMT in 2013 from 197 MMT this past year and a similar figure the year before.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

04/20/12

04/27/12

05/04/12

05/11/12

Change

% Change

May

Corn

$6.13

$6.53

$6.62

$6.08

($0.54)

-8.19%

May

CBOT Wheat

$6.16

$6.42

$6.04

$5.93

($0.11)

-1.82%

May

KCBT Wheat

$6.27

$6.47

$6.14

$6.01

($0.13)

-2.08%

May

MGEX Wheat

$7.91

$7.74

$7.40

$7.41

$0.01

0.17%

May

Soybeans

$14.47

$14.97

$14.75

$14.04

($0.71)

-4.81%

May

Soybean Meal

$406.00

$427.40

$432.10

$411.00

($21.10)

-4.88%

May

Soybean Oil

$55.83

$55.18

$53.30

$51.90

($1.40)

-2.63%

Jun

Live Cattle

$115.45

$112.85

$115.38

$115.15

($0.22)

-0.20%

May

Feeder Cattle

$151.90

$148.78

$152.55

$149.70

($2.85)

-1.87%

May

Lean Hogs

$87.50

$85.50

$79.80

$79.53

($0.27)

-0.34%

July

Cotton

$91.01

$91.23

$87.99

$78.97

($9.02)

-10.25%

May

Oats

$3.22

$3.36

$3.32

$3.32

$0.00

0.15%

May

Rice

$15.51

$14.99

$14.96

$15.49

$0.53

3.54%

 

Cotton futures had the worst showing for a very "red" week. They were down 10.25% for the week. Weekly export sales were positive, which hasn’t always been the case. That didn’t help overcome very bearish numbers from USDA on Thursday. USDA said that harvested acres should actually be larger than last year, despite a reduction in planting intentions. That is due to better weather conditions in the southern US and less likely abandonment. The global ending stocks forecast was also taken to a multi-decade high of 73.75 MMT, with a sharp drop of almost 8 million bales in 2012/13 consumption foreseen. A $500 million hedge fund also announced that it would be closing, and sold an estimated 15,000 contracts in very short period of time on Thursday to cement the decline.

Cattle futures slipped 22 cents for the week, a 0.20% loss that all occurred on Friday. Beef production YTD is down 3.1% from last year. Estimated production for the most recent week was up 0.5% from the same week in 2011 despite 11,000 fewer cattle. Wholesale prices were weaker, losing 0.6% for the week in the Choice boxes and down 1.6% in the Select product. They were reflecting increased slaughter as well, at an estimated 639,000 head vs. 623,000 the week before. The weakness Cash cattle trade was $192-194 in NE, with $119 in KS reported on Friday. Those were down $1-2 from the previous week.

Lean Hog futures for the most part held their ground. Expiring May was down 0.34% as it synced up with the CME Lean Hog Index ahead of expiration on the 14th. June futures were actually $1.70 higher for the week. The pork carcass cutout value rose back above $80 for the first time since March 28! The net gain for the week was $1.69 or 2.14%. March pork export data was finally released, and showed March shipments were down from March 2011, but much larger than February 2012. Year to date pork production is up 1.8% from last year. Production this past week was 6.7% larger than the same week in 2011.

Market Watch: The May grain and hog contracts will expire on Monday, none too soon for some. USDA will release the usual Export Inspections and Crop Progress reports on Monday afternoon, with corn planting progress expected to be in the 80’s. NOPA will also issue a monthly crush report on Monday morning.  USDA weekly Export Sales will be the feature on Thursday morning, while Friday afternoon will feature the monthly USDA Cattle on Feed report and Milk Production


There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading.

 Visit our website at https://www.bruglermarketing.com or call us at 402-289-2330 for further information.   

Big Downs, Small Ups

May 04, 2012

Brugler

Market Watch with Alan Brugler

May 4, 2012

Big Downs, Small Ups

 

Churchill Downs may have the Kentucky Derby this week, but those mint julep drinking folks have no corner on down markets. The ag markets had some big down moves in things like wheat and hogs and cotton, but the commodities in the plus column like corn and cattle were up less than 2.5% while the losers were down 6% or more. The US dollar didn’t help the commodities priced in dollars, gaining 1% for the week in the DX futures.

Corn futures gained 9 cents for the week after being up 6.6% the previous week. This is a function of the short squeeze in the May contract. May was up 11 ½ cents on Friday, while December was down 5 ¼. The CFTC report showed the large managed money specs increased their net long in corn for the reporting week ending May 1. USDA reported weekly net export sales of 1.33 MMT for 2011/12 marketing year and net sales of 2.14 MMT for the 2012/13 marketing year. These are very large numbers, but of course the next question was "Ya got any more money?" A Memphis based analysis firm increased projected 2012 corn acreage to 96.1 million acres vs. the USDA number of 95.9 million.

Soybeans were down 22 cents for the week after gaining 50 cents the week before. Profit taking was a big factor after prices topped the $15 mark for the first time since 2008. Rains were delaying soybean planting in the Midwest, but it is still fairly early for beans. Weekly export sales were very large at 598,000 MT for 2011/12 delivery and 1,134,000 MT for 2012/13 delivery. Additional sales were reported under the daily reporting system and will show up in next week’s report. Soybean meal was up $4.70/ton or 1.1%. Reduced fish meal supplies are supportive, and DDG prices in some areas have soared to 100% of the value of the underlying corn. That said, some hog producers are said to be stepping up DDG feeding because it is cheaper than $400+ meal.

The three wheat markets were sharply lower, down 4.4 to 6%, with CHI the weakest. The Kansas and Oklahoma wheat tours showed record yield potential for those two states, with Oklahoma production more than double last year and the estimated Kansas yield at or above the 1998 record of 49 bushels per acre. Wheat harvest is still several weeks away, but barring weather losses the US appears to have more HRW than previously expected. SRW is a different story, with agronomists reporting a number of fields with losses from mosaic and from freeze damage. That wasn’t supportive this week because it didn’t knock down the crop ratings. The Brugler500 index was UNCH at 365.

Nearby cotton futures dropped 3.54% for the week. USDA again reported net negative old crop export sales, with cancellations exceeding new sales. The weekly export sales report from USDA showed a reduction of 25,200 RB for 2011/12 with China decreasing by 49,100 RB not offset by increases in sales to other destinations. Net sales of 79,200 RB for 2012/13 were primarily for Malaysia, Mexico and China. Net Pima sales were 11,000 RB. Cotton export shipments were 320,600 RB, up 14% from the four week average. Total commitments are 105% of the USDA forecast for the year.

 

 

Commodity

 

 

 

 

Weekly

Weekly

Month

04/13/12

04/20/12

04/27/12

05/04/12

Change

% Change

May

Corn

$6.29

$6.13

$6.53

$6.62

$0.09

1.42%

May

CBOT Wheat

$6.24

$6.16

$6.42

$6.04

($0.39)

-5.99%

May

KCBT Wheat

$6.43

$6.27

$6.47

$6.14

($0.33)

-5.07%

May

MGEX Wheat

$8.24

$7.91

$7.74

$7.40

($0.34)

-4.39%

May

Soybeans

$14.37

$14.47

$14.97

$14.75

($0.22)

-1.45%

May

Soybean Meal

$395.80

$406.00

$427.40

$432.10

$4.70

1.10%

May

Soybean Oil

$56.52

$55.83

$55.18

$53.30

($1.88)

-3.41%

Jun

Live Cattle

$116.08

$115.45

$112.85

$115.38

$2.53

2.24%

May

Feeder Cattle

$151.53

$151.90

$148.78

$152.55

$3.78

2.54%

May

Lean Hogs

$91.13

$87.50

$85.50

$79.80

($5.70)

-6.67%

May

Cotton

$92.08

$90.04

$89.23

$86.07

($3.16)

-3.54%

May

Oats

$3.28

$3.22

$3.36

$3.32

($0.04)

-1.27%

May

Rice

$15.31

$15.51

$14.99

$14.96

($0.03)

-0.20%

 

Cattle futures shook off the effects of the BSE sell off and rallied $2.53 for the week, a 2.24% gain. Beef production was estimated to be up 1.9% for the week from the prior week, but still down 2.8% from the same week in 2011. YTD production is off 3.3% on 5.1% fewer cattle slaughtered. Wholesale prices held their ground, with net gains of two cents and six cents per hundred pounds for choice and select carcasses respectively. Packers made up some ground on a continued rebound in LFTB and ground beef.

Lean Hog futures lost a lot of ground, with May down 6.67% for the week as the futures premium to cash totally evaporated and futures anticipated even further weakness in cash before the contract expires on the 14th. Futures action was a bit of a death spiral, with longs wanting out but nobody willing to step in with little time remaining in the contract. Pork production for the week was up 4.9% vs. the same week a year ago, a problem with questionable export demand to siphon off the surplus. YTD pork production is up 1.6%. While you couldn’t see it in the cash hog market, the cutout value quietly increased $1.97/hundred.

Market Watch: The main USDA reports will be on Thursday, with monthly WASDE and Crop Production estimates. This will be the first official set of world and US supply/demand numbers for the 2012/13 marketing year, replacing the armchair estimates released in February at the Outlook Forum. We’ll also have the regular USDA weekly export inspections and Crop Progress reports on Monday evening and the Export Sales on Thursday morning. May cotton futures expire on the 8th.

 

There is a risk of loss in futures and options trading.  Such trading is not appropriate for all individuals. Past performance is not necessarily indicative of future results.  Comments made in this article are in no way to be seen as an endorsement of futures and options trading. Reproduction or rebroadcast of any portion of this article without written consent of Brugler Marketing & Management LLC is strictly prohibited. Copyright 2012 Brugler Marketing & Management, LLC. Visit our website at https://www.bruglermarketing.com or call us at 402-289-2330 for further information.  

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