Ag Market Commentary

Corn futures are trading 1 cent higher this morning. They were steady to 2 1/4 cents lower in most nearby contracts on Thursday. The weekly Export Sales report indicated that 774,243 MT of 18/19 corn was sold in the week that ended 9/6. There were also 2.926 MMTs rolled over to 2018/19 delivery from 17/18 sales. Export shipments for that week were tallied at 991,521 MT, with 264,317 MT for 17/18 and the balance for 18/19. An auction of Chinese state reserves on Thursday saw 2.902 MMT of corn sold, totaling 73.28% of the amount offered. The Rosario Grain Exchange estimates that the Argentina corn crop will total 43 MMT for 18/19, down 2 MMT from their previous estimate.

Soybean futures are currently 2 to 3 cents higher after closing with 5 to 7 cent losses in most contracts on Thursday. Soymeal was down $4.40/ton, with soy oil 19 points lower. FAS showed that 693,453 MT of 18/19 soybeans were sold for export in the week that ended on September 6. There was also 2.430 MMT carried over from leftover 17/18 sales. There was a total of 1.138 MMT of soybean shipments during the week that was over last Thursday, with 242,484 for 17/18 and the rest for new crop. There was a total of 132,995 MT shipped to China in that week. Soymeal export sales in that week totaled 233,194 MT, with soy oil at 5,176 MT.

Wheat futures are 5 to 8 cents higher this morning with KC HRW the strongest. They ended the Thursday session with most KC contracts 8 to 10 cents lower. CBT was down 5 to 6 cents, with MPLS steady to 3 cents in the red. Export sales of all wheat during the week of 9/6 were 387,570 MT. That was up 2.1% from the previous week and 22.4% larger than the same week in 2017. There was 429,086 MT in export shipments in that week. Morocco issued a preferential tariff quota for 336,364 MT of US wheat on Thursday, with the tender to close on Sep 28 and delivery by Dec 31. Saudi Arabia is seeking 595,000 MT of wheat in a tender closing today. Iraq is seeking 50,000 MT of wheat from the US, Canada, and Australia with the tender to close on 9/23.

Live cattle futures settled 67.5 cents lower to 47 cents higher on Thursday. Feeder cattle futures were up 25 to 75 cents, getting a little help from recent losses in corn. The CME feeder cattle index was down 3 cents on September 12 at $152.60. Wholesale boxed beef values were lower on Thursday afternoon. Choice boxes were down 75 cents to $204.04, while Select boxes were 3 cents lower at $197.24. USDA estimated weekly FI cattle slaughter at 476,000 head through Thursday, which is 6,000 head above the same week in 2017. Weekly export sales of beef in the week that ended on 9/6 totaled 10,825 MT. Shipments totaled 15,719 MT that week. Cash bids were shown at $106 and $168 Thursday, with feedlots passing on $108 in Wednesday’s FCE auction. Asking prices appear to be $112 and $174.

Lean hog futures saw mixed trade on Thursday, with nearby Oct down 12.5 cents and Dec up 30. The CME Lean Hog Index was up 94 cents on September 11 to $48.49. The USDA pork carcass cutout value was 19 cents higher @ $71.05 in the Thursday afternoon FOB plant report. The national base hog carcass value was $1.22 higher @ $48.92 this afternoon. FI hog slaughter through Thursday was estimated at 1.749 million head, down 80,000 head from the same week last year. Pork export sales for the week of Sep 6 were 18,717 MT.

Cotton futures are trading 3 points lower to 18 points higher this Friday morning after they finished the Thursday session with most contracts 74 to 114 points lower. The USDA Export Sales report indicated that 81,719 RB of 18/19 upland cotton was sold in the week of 9/6. That was down from the week prior, but 25.31% larger than the same week last year. Sales for 19/20 were shown at 17,704 RB. Weekly exports of upland cotton were 25% larger than last year at 135,731 MT. The Cotlook A index was up down 10 points from the previous day at 92.40 cents/lb on September 12. The USDA AWP was updated to 73.79 cents/lb, just 2 points above last week.

Market Commentary provided by:

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