Grain Prices Rise Even As Stockpiles Climb

Grain Prices Rise Even As Stockpiles Climb

Bad weather that threatens production in some nations supports futures

ENLARGE
The U.S. Department of Agriculture on Tuesday said global crop stockpiles continued to grow. Photo: Reuters
Jesse Newman
Updated April 12, 2016 5:42 p.m. ET 1 COMMENTS

CHICAGO—Federal forecasters on Tuesday said global crop stockpiles continued to grow though U.S. grain and soybean prices closed higher in part on concerns that bad weather could affect harvests in some breadbasket nations.

Corn, soybean and wheat prices all advanced after the U.S. Department of Agriculture released its closely watched monthly update on supply and demand conditions, even as agribusiness executives cautioned the global glut was set to continue.

The report “was a speed bump and the market took it that way,” said Don Roose, president of U.S. Commodities, a brokerage in West Des Moines, Iowa. Grain and soybean markets initially slipped from session highs after its publication. Weather was a key factor supporting prices, Mr. Roose said.

The USDA forecast larger-than-expected world corn stockpiles, estimating global inventories in the 2015-16 season would total 208.9 million metric tons, up from its March estimate of 207 million and above analysts’ expectations.

The agency also projected bigger-than-expected domestic stockpiles of the grain, saying U.S. corn reserves at the end of the 2015-16 season on Aug. 31 would total 1.862 billion bushels, up from last month’s forecast of 1.837 billion.

Corn futures for May delivery rose 6 cents, or 1.7%, to $3.62 3/4 a bushel at the Chicago Board of Trade, the highest closing price since March 30.

Worries over inclement weather in South America helped boost crop prices. Hot, dry conditions in Brazil could threaten corn yields there, while rains in Argentina are delaying that country’s soybean harvest and potentially curbing output.

Still, the USDA’s projections for larger world inventories of the three major row crops come as elevated global crop reserves and production continues to outstrip demand, weighing on prices of many crops.

Massive world crop stockpiles will keep world agricultural prices under pressure despite continued strong Chinese demand, said Gonzalo Ramírez Martiarena, chief executive of agricultural trading firm Louis Dreyfus Company, at the FT Commodities Global Summit in Lausanne, Switzerland, on Tuesday.

“You really need a good disaster to lose a crop,” said Mr. Ramírez Martiarena. “I don’t see that situation going forward.”

Soybean closed at a fresh eight-month high despite the USDA’s projection for slightly larger world soybean reserves.

The agency said global soybean stockpiles for the current season would total 79 million tons, up modestly from 78.9 million projected last month.

Prices for the oilseeds also benefited from a reduced outlook for domestic soybean supplies, with the USDA pegging U.S. stockpiles in August at 445 million bushels, down from its March estimate of 460 million.

Analysts said a declining U.S. dollar, increased fund buying and political uncertainty in Brazil, a major U.S. rival in soybean production and export, also propped up the oilseed market on Tuesday.

CBOT May soybean futures added 8 cents, or 0.9%, to $9.36 1/4 a bushel, the highest closing price since Aug. 14.

Wheat prices gained after the USDA’s domestic stockpile estimate fell below analysts’ expectations. The government projected U.S. wheat reserves as of May 31, the end of the season for that commodity, would total 976 million bushels, up from its previous forecast for 966 million.

World wheat reserves this season will total 239.3 million tons, higher than the government’s previous forecast of 237.6 million tons.

CBOT May wheat futures advanced 5 1/4 cents, or 1.2%, to $4.52 1/2 a bushel.

—Jacob Bunge, Miriam Malek and Katherine Dunn contributed to this article

Write to Jesse Newman at jesse.newman@wsj.com

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Alfalfa harvest underway as prices trend lower – Update April 2016 –

Alfalfa harvest underway as prices trend lower – Update April 2016

Published on 04 April 2016

Alfalfa harvest is underway in Arizona and California. Fields are greening up in other regions, giving a glimpse of how the hay crop survived winter. Most areas of the country reported adequate to surplus hay and roughage supplies.

USDA’s latest World Agricultural Outlook Board report provided an update on soil moisture conditions in major and minor hay-producing areas of the United States. As of March 29, about 8 percent of U.S. hay acreage are in areas experiencing drought. Those areas included most of California and portions of Oregon, Utah, Arizona, New Mexico, with pockets in Montana, Wyoming, Kansas, Oklahoma, Texas and Colorado.

Check out the hay areas under drought conditions.

Alfalfa

With few exceptions, alfalfa hay prices continued to trend lower in most major states, according to the USDA National Ag Statistics Service’s monthly Ag Prices report, released March 30.

The February 2016 U.S. average price paid to alfalfa hay producers at the farm level was $142 per ton, down $5 from January and $25 less than a year earlier. Sharpest year-to-year declines were seen in Nevada, down $80 per ton, and Michigan, down $55 per ton. Only Kentucky, Ohio and Missouri reported somewhat higher prices than a year ago.

Some areas still recorded average prices above $200 per ton in February, topped by Kentucky, New York, Pennsylvania and Texas. Lowest reported alfalfa hay prices in February were in North Dakota, Nebraska, Minnesota and Wisconsin.

Other hay

In contrast, the U.S. average price for other hay was up $4 per ton, to $125 per ton in February. While Midwest prices were pressured lower, prices in the East were steady to higher.

acreage

U.S. hay producers intend to harvest 54.3 million acres of all hay in 2016, according to the USDA’s annual Prospective Plantings report released March 31. Record-low area harvested for all hay is expected in several major dairy states, including California, Illinois, Indiana, Michigan, New York, Pennsylvania, Vermont and Wisconsin in 2016.

Read Prospective plantings: 2016 hay acreage expected to remain steady.

Dairy outlook

USDA’s March World Ag Supply & Demand Estimates (WASDE) report reduced 2016 U.S. milk production estimates slightly, but projected further milk price erosion, too. The lower milk production forecast is the result of a small decline in cow numbers and slower growth in milk production per cow.

USDA’s latest dairy outlook report forecasts cow numbers will peak in the second quarter of 2016 before starting a slow decline. For the year, cow numbers are projected at 9.305 million head, up 10,000 from the previous forecast, but about 12,000 fewer than 2015.

Milk production per cow is forecast at 22,745 pounds, up about 350 pounds (1.6 percent) from 2015.

At 211.6 billion pounds, 2016 production would be up about 1.4 percent from 2015 revised production estimates.

The projected 2016 all-milk price is $15.25 per hundredweight at the mid-point, down $1.83 from 2015 and down about $8.70 from 2014’s record high of $23.97 per hundredweight.

February average milk income over feed cost margin levels were squeezed to the lowest level since late last summer, but not enough to trigger indemnity payments under the Margin Protection Program for Dairy (MPP-Dairy). Based on current projections by the Program on Dairy Markets and Policy, MPP-Dairy margins could dip below $7.00 per hundredweight in April-May 2016, before trending higher later in the year.

Read: February dairy producer margins tighten, but not enough to trigger MPP-Dairy payment

Foreign impacts

A healthy appetite for alfalfa hay in the Middle East helped boost U.S. exports in January, according to latest estimates from USDA’s Foreign Agriculture Service. However, while up sharply from a year earlier, monthly alfalfa hay exports were still the lowest since September 2015.

January 2016 alfalfa hay exports totaled 151,603 metric tons (MT), up 38 percent from January 2015. Other issues, including the end of West Coast port worker slowdowns resolved in early 2015, likely also factored into the year-over-year export improvement.

China was the top foreign alfalfa hay market for the month, importing 46,260 MT, followed by Japan, at 40,758 MT.

The United Arab Emirates (UAE) and Saudi Arabia posted the largest year-to-year gains.

With the jump in export volume, total value of alfalfa hay exports was also higher, despite lower hay prices. Total alfalfa hay exports were valued at $47.3 million in January 2016, compared to $38.5 million a year ago.

January 2016 U.S. exports of other hay, at 125,048 MT, were up from 111,999 MT in January 2015. Despite the higher volume, lower prices dampened total value. Other hay exports were estimated at $37.1 million in January 2016, compared to $37.8 million in January 2015. Leading markets were Japan and South Korea.

January 2016 exports of alfalfa cubes also posted gains compared to a year earlier.

Two of the largest foreign buyers of U.S. hay, Saudia Arabia and UAE are ramping up hay ground purchases in the U.S., according to multiple published reports.

Saudi Arabia’s largest dairy company, Almarai Co., has purchased more than 14,000 acres of cropland in California and Arizona, with plans to grow alfalfa hay for its 170,000 dairy cows back home. In an effort to protect its own water supplies, Saudi Arabia has already banned wheat production, and will phase out all forage production for livestock feed over the next three years.

California-based hay exporter Al Dahra ACX Global Inc., owned by Al Dahra Agriculture Co. of UAE, plans to add 7,500 acres in the U.S. for alfalfa and other crops.

Figures and charts

The prices and information in Alfalfa hay and Other hay market trends are provided by NASS and reflect general price trends and movements. Hay quality, however, was not provided in the NASS reports.

For purposes of this report, states that provided data to NASS were divided into the following regions:

Southwest – Arizona, California, Nevada, New Mexico, Oklahoma, Texas

East – Kentucky, New York, Ohio, Pennsylvania

Northwest – Colorado, Idaho, Montana, Oregon, Utah, Washington, Wyoming

Midwest – Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin. FG

What does the end f China’s Corn Stockpiling program mean for Grain Markets?

Oilseed & Grain Trade

What Does the End of China’s Corn Stockpiling Program Mean for Grain Markets?

April 4, 2016

by Lynda Kiernan

After accumulating approximately 250 million tons, China announced that it will be ending its state-sponsored corn stockpiling program this year, according to the official Xinhua News Agency reports Bloomberg. China began buying domestic grain at above market prices in 2008 in order to protect the income of its farmers. This practice led to more than a 35% increase in production making China the second biggest corn producer in the world after the U.S., and swelling the country’s stockpiled inventory to more corn than the country could use in a year.

In place of the stockpiling program, beginning with the 2016/17 season, Beijing will direct buyers to acquire corn at market prices, will provide farmers with offers of credit, will push for changes in crop production, and will take measures to reduce the current massive domestic inventory.

As a result of the influx of domestic corn into its market and the correction of corn prices, Chinese buyers are expected to reduce their purchases of grain substitutes including barley, sorghum, and distiller’s dried grains DDGs from global markets. Reuters reports that Chinese imports of sorghum and DDGs from the U.S. have already decreased from their record high volumes reached last year.

"The good things we saw a couple years ago are over," Mike O’Dea, a U.S. trader for INTL FCStone Inc. told Reuters.

However, the rapid growth of Chinese demand and the likely questionable condition of the corn in reserve may support continued import volumes from China, and once the reserves are spent, demand for grain may strongly rebound.

"The quality of the corn is very uncertain. A lot of it is poor quality and in fact has mould [sic] problems, which will make it unusable as livestock feed or for most kinds of industrial use as well," United States Department of Agriculture Economic Research Service senior economist Fred Gale told ABC.

April Fooling by Alan Brugler

April Fooling

Apr 01, 2016

 

Market Watch with Alan Brugler

April Fooling

In Honor of April Fool’s Day, I went searching for some famous quotes on fools and foolishness. On tenet of any bull market (few and far between at the moment) is the greater fool theory. Instead of buying low and selling high, fools buy high and try to sell higher to an even greater fool. The last one to get “in” gets stuck with the biggest loss. Bernard Baruch said “The main purpose of the stock market is to make fools of as many men as possible”. He might as well have been talking about commodities. Just substitute “USDA” for “stock market” and you have this week’s corn reports pretty well summarized. The entire market got caught on the wrong side as producers planned a much bigger shift to corn than imagined possible. Of course, Mark Twain had a few things to say about fools as well. First, “get your facts first, then you can distort them as you please.” And finally, “The first of April is the day we remember what we are the other 364 days of the year”.

Corn futures were down 4.5% this week. THE big event of the week was the Planting Intentions report on Thursday. Producers told USDA they intended to plant 93.6 million acres to corn in 2016, nearly 3.5 million more than the average trade estimate coming into the report. That was a shocker, and worthly of the double digit decline on report day. Sometimes a grain stocks surprise will blunt the acreage figure, but USDA found corn stocks on March 1 to be 7.807 billion bushels, just about as expected. Weekly ethanol stocks rose 500,000 barrels from the previous week. Monthly corn grind for ethanol came out on Friday afternoon, with USDA showing 420.8 million bushels used in February. Weekly export sales for corn through March 24 totaled 870,200 MT, with the old crop total of 790,600 down 2% from the previous week.

Commodity Weekly Weekly
Mon 03/18/16 03/24/16 04/01/16 Change % Chg
May Corn $3.670 $3.700 $3.540 ($0.160) -4.52%
May CBOT Wheat $4.630 $4.630 $4.758 $0.128 2.68%
May KCBT Wheat $4.695 $4.718 $4.778 $0.060 1.26%
May MGEX Wheat $5.09 $5.12 $5.29 $0.170 3.21%
May Soybeans $8.975 $9.105 $9.183 $0.077 0.84%
May Soy Meal $266.60 $275.30 $272.30 ($3.00) -1.10%
May Soybean Oil $33.42 $33.18 $34.45 $1.270 3.69%
Apr Live Cattle $139.825 $135.850 $132.975 ($2.875) -2.16%
Apr Feeder Cattle $162.20 $155.83 $156.20 $0.38 0.24%
Apr Lean Hogs $71.450 $69.625 $67.800 ($1.825) -2.69%
May Cotton 57.16 57.72 59.20 1.480 2.50%
May Oats $1.880 $1.870 $1.850 ($0.020) -1.08%

Wheat futures were higher at all three exchanges. MPLS was the firmest again, with a 3.2% advance. USDA confirmed what the market was telling us, i.e. spring wheat acreage is sharply lower in 2016. The report on Thursday put Other Spring at 11.3 million, and All Wheat at 36.2 million acres. The All Wheat figure is the lowest since 1970. The March 1 wheat stocks were a dead weight, at 1.372 billion bushels. USDA will likely cut feed & residual use to reflect the slightly larger than expected number. US Weekly export sales were 402,800 MT. The old crop number was one vessel shy of the previous week, at 317,200 MT. The IGC increased its 2015/16 world production estimate by 2 MMT to 734 MMT (USDA: 732.32 MMT). Production in 2016/17 is expected to fall to 713 MMT, their lowest estimate since 2012/13. However, world ending stocks are estimated to only fall to 211 MMT next year, from the 15/16 estimate of 214.

Soybeans were up 0.8% this week, with an assist from another 3.7% gain in nearby soy oil. Palm oil production is being hit hard by El Nino weather, shrinking projected ending stocks and lending a hand to competing oils. USDA didn’t hurt the bulls in the big reports, with both March 1 stocks and acreage intentions on the low side of trade guesses. Beans became the long leg of spreads, and the funds had little incentive to exit their recently acquired long positions. USDA reported March 1 bean stocks of 1.531 billion bushels, with 82.2 million acres intended for 2016. By Friday night the soy:corn ratio had ballooned out to 2.52:1 in an attempt to pull some ground away from corn and toward beans. The USDA monthly crush report on Friday showed 154.6 million bushels consumed in February. Oil stocks were 2.281 billion pounds. The IGC increased its 2015/16 world soy production estimate by 2 MMT to 323 MMT (USDA: 320.21 MMT). World production in 2016/17 is estimated to be 320 MMT.

May cotton futures were up 2.5% for the week, thanks mostly to weakness in the US dollar. USDA confirmed that producers intend to plant 9.6 million acres in 2016. That is down from 2 years ago, but above both trade estimates and the weather depressed 8.58 million from last year. Old crop US cotton export sales slowed firmed last week, with upland bookings of only 121,600 RB vs. 84,400 RB the previous week. Pima sales were 12,200 RB, up from 8,500 RB last week. The marketing year ends July 31. The USDA AWP for the week is 44.48 cents, down from 44.84 cents last week. The updated LDP/MLG is 7.52 cents, up from 7.16 cents last week.

Live cattle futures dropped 2.2% this week, extending the 3% drop from the previous week. USDA weekly export sales for beef jumped to a marketing year high of 24,500 MT. Japan bought a big 16,000 MT chunk, helping to explain wholesale price strength earlier in the month. Dressed sales in NE and the WCB were reported at $115-116, which is $2-3 lower than last week. Weekly FI cattle slaughter was estimated at 542,000 head. Beef production YTD is now 2% larger than last year. Choice wholesale beef prices plunged $5.25 this week (-2.3%), while Select boxes were down $7.96 (-3.14%).

Lean hog futures were down 2.7% this week. The CME Lean Hog Index was up 32 cents on Friday to $65.25, but still below where it was ahead of the Easter break ($65.89). The USDA average pork carcass cutout value was up 98 cents on a Friday/Friday basis, a 1.3% increase. Hams posted the biggest gain for the post-Easter week. Estimated weekly FI hog slaughter is 2.181 million head, up 3,000 from last week. Pork production YTD is down about 1.5% from last year (It was -1.3% last week). The Hogs & Pigs report was initially spun as bullish because it wasn’t more bearish than expected. By the end of the week, prices were lower due to improving productivity.

Market Watch

Cattle traders will begin the week reacting to any surprise positions inherited with the expiration of the April cattle options on April 1. Grain types will have the usual weekly USDA Export Inspections on Monday and weekly Export Sales report on Thursday morning. Now that the calendar has turned to April, we will begin getting the weekly 18-state Crop Progress reports from NASS on Monday night.

Visit our Brugler web site at or call 402-289-2330 for more information on our consulting and advisory services for farm family enterprises and agribusinesses.Clients can also get one touch access to our cash market and hedging recommendations via our mobile web site. You will be taken to the mobile home page automatically if you visit our web site with the mobile device. Three times daily fundamental news from Brugler is available on the free side of the mobile site.

There is a risk of loss in futures and options trading. Past performance is not necessarily indicative of future results. Copyright 2016 Brugler Marketing & Management, LLC

Comments

No comments have been posted to this Blog Post

April Fooling by Alan Brugler

April Fooling

Apr 01, 2016

Market Watch with Alan Brugler

April Fooling

In Honor of April Fool’s Day, I went searching for some famous quotes on fools and foolishness. On tenet of any bull market (few and far between at the moment) is the greater fool theory. Instead of buying low and selling high, fools buy high and try to sell higher to an even greater fool. The last one to get “in” gets stuck with the biggest loss. Bernard Baruch said “The main purpose of the stock market is to make fools of as many men as possible”. He might as well have been talking about commodities. Just substitute “USDA” for “stock market” and you have this week’s corn reports pretty well summarized. The entire market got caught on the wrong side as producers planned a much bigger shift to corn than imagined possible. Of course, Mark Twain had a few things to say about fools as well. First, “get your facts first, then you can distort them as you please.” And finally, “The first of April is the day we remember what we are the other 364 days of the year”.

Corn futures were down 4.5% this week. THE big event of the week was the Planting Intentions report on Thursday. Producers told USDA they intended to plant 93.6 million acres to corn in 2016, nearly 3.5 million more than the average trade estimate coming into the report. That was a shocker, and worthly of the double digit decline on report day. Sometimes a grain stocks surprise will blunt the acreage figure, but USDA found corn stocks on March 1 to be 7.807 billion bushels, just about as expected. Weekly ethanol stocks rose 500,000 barrels from the previous week. Monthly corn grind for ethanol came out on Friday afternoon, with USDA showing 420.8 million bushels used in February. Weekly export sales for corn through March 24 totaled 870,200 MT, with the old crop total of 790,600 down 2% from the previous week.

Commodity Weekly Weekly
Mon 03/18/16 03/24/16 04/01/16 Change % Chg
May Corn $3.670 $3.700 $3.540 ($0.160) -4.52%
May CBOT Wheat $4.630 $4.630 $4.758 $0.128 2.68%
May KCBT Wheat $4.695 $4.718 $4.778 $0.060 1.26%
May MGEX Wheat $5.09 $5.12 $5.29 $0.170 3.21%
May Soybeans $8.975 $9.105 $9.183 $0.077 0.84%
May Soy Meal $266.60 $275.30 $272.30 ($3.00) -1.10%
May Soybean Oil $33.42 $33.18 $34.45 $1.270 3.69%
Apr Live Cattle $139.825 $135.850 $132.975 ($2.875) -2.16%
Apr Feeder Cattle $162.20 $155.83 $156.20 $0.38 0.24%
Apr Lean Hogs $71.450 $69.625 $67.800 ($1.825) -2.69%
May Cotton 57.16 57.72 59.20 1.480 2.50%
May Oats $1.880 $1.870 $1.850 ($0.020) -1.08%

Wheat futures were higher at all three exchanges. MPLS was the firmest again, with a 3.2% advance. USDA confirmed what the market was telling us, i.e. spring wheat acreage is sharply lower in 2016. The report on Thursday put Other Spring at 11.3 million, and All Wheat at 36.2 million acres. The All Wheat figure is the lowest since 1970. The March 1 wheat stocks were a dead weight, at 1.372 billion bushels. USDA will likely cut feed & residual use to reflect the slightly larger than expected number. US Weekly export sales were 402,800 MT. The old crop number was one vessel shy of the previous week, at 317,200 MT. The IGC increased its 2015/16 world production estimate by 2 MMT to 734 MMT (USDA: 732.32 MMT). Production in 2016/17 is expected to fall to 713 MMT, their lowest estimate since 2012/13. However, world ending stocks are estimated to only fall to 211 MMT next year, from the 15/16 estimate of 214.

Soybeans were up 0.8% this week, with an assist from another 3.7% gain in nearby soy oil. Palm oil production is being hit hard by El Nino weather, shrinking projected ending stocks and lending a hand to competing oils. USDA didn’t hurt the bulls in the big reports, with both March 1 stocks and acreage intentions on the low side of trade guesses. Beans became the long leg of spreads, and the funds had little incentive to exit their recently acquired long positions. USDA reported March 1 bean stocks of 1.531 billion bushels, with 82.2 million acres intended for 2016. By Friday night the soy:corn ratio had ballooned out to 2.52:1 in an attempt to pull some ground away from corn and toward beans. The USDA monthly crush report on Friday showed 154.6 million bushels consumed in February. Oil stocks were 2.281 billion pounds. The IGC increased its 2015/16 world soy production estimate by 2 MMT to 323 MMT (USDA: 320.21 MMT). World production in 2016/17 is estimated to be 320 MMT.

May cotton futures were up 2.5% for the week, thanks mostly to weakness in the US dollar. USDA confirmed that producers intend to plant 9.6 million acres in 2016. That is down from 2 years ago, but above both trade estimates and the weather depressed 8.58 million from last year. Old crop US cotton export sales slowed firmed last week, with upland bookings of only 121,600 RB vs. 84,400 RB the previous week. Pima sales were 12,200 RB, up from 8,500 RB last week. The marketing year ends July 31. The USDA AWP for the week is 44.48 cents, down from 44.84 cents last week. The updated LDP/MLG is 7.52 cents, up from 7.16 cents last week.

Live cattle futures dropped 2.2% this week, extending the 3% drop from the previous week. USDA weekly export sales for beef jumped to a marketing year high of 24,500 MT. Japan bought a big 16,000 MT chunk, helping to explain wholesale price strength earlier in the month. Dressed sales in NE and the WCB were reported at $115-116, which is $2-3 lower than last week. Weekly FI cattle slaughter was estimated at 542,000 head. Beef production YTD is now 2% larger than last year. Choice wholesale beef prices plunged $5.25 this week (-2.3%), while Select boxes were down $7.96 (-3.14%).

Lean hog futures were down 2.7% this week. The CME Lean Hog Index was up 32 cents on Friday to $65.25, but still below where it was ahead of the Easter break ($65.89). The USDA average pork carcass cutout value was up 98 cents on a Friday/Friday basis, a 1.3% increase. Hams posted the biggest gain for the post-Easter week. Estimated weekly FI hog slaughter is 2.181 million head, up 3,000 from last week. Pork production YTD is down about 1.5% from last year (It was -1.3% last week). The Hogs & Pigs report was initially spun as bullish because it wasn’t more bearish than expected. By the end of the week, prices were lower due to improving productivity.

Market Watch

Cattle traders will begin the week reacting to any surprise positions inherited with the expiration of the April cattle options on April 1. Grain types will have the usual weekly USDA Export Inspections on Monday and weekly Export Sales report on Thursday morning. Now that the calendar has turned to April, we will begin getting the weekly 18-state Crop Progress reports from NASS on Monday night.

Visit our Brugler web site at or call 402-289-2330 for more information on our consulting and advisory services for farm family enterprises and agribusinesses.Clients can also get one touch access to our cash market and hedging recommendations via our mobile web site. You will be taken to the mobile home page automatically if you visit our web site with the mobile device. Three times daily fundamental news from Brugler is available on the free side of the mobile site.

There is a risk of loss in futures and options trading. Past performance is not necessarily indicative of future results. Copyright 2016 Brugler Marketing & Management, LLC