AgriCharts Market Commentary

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Corn

Corn futures are trading 3 1/2 to 4 cents lower on Wednesday. This morning’s weekly EIA report indicated that a robust 1.059 million barrels per day of ethanol was produced during the week of August 11. That is 47,000 bpd larger than the previous week, and the second largest weekly production reported. Ethanol stocks for that week reached 21.828 million barrels, 481,000 barrels larger than the week prior. A 648,000 barrel drop for the East Coast was offset by a large jump in West Coast and Gulf stocks. The Buenos Aires Grain Exchange expects 13.34 million acres of corn to be planted in Argentina for the 2017/18 marketing year, up from last year’s 12.6 million acres. US export corn is within $3.50/MT or so of Brazilian FOB offers, but still $7-8 above Argentina.

Sep 17 Corn is at $3.51 1/4, down 4 cents,

Dec 17 Corn is at $3.64 3/4, down 3 3/4 cents,

Mar 18 Corn is at $3.76 3/4, down 3 1/2 cents

May 18 Corn is at $3.83, down 3 3/4 cents

Soybeans

Soybean futures are mostly a penny to 2 1/4 cents lower at midday. Sep soy meal is down $1.40/ton, with nearby bean oil up 10 points. Rains rolling across the Midwest this morning have so far had little effect on the market. There are reports that a Chinese delegation preliminarily agreed to purchase another 3.8 MMT of soybeans from the US on Tuesday. NOPA’s crush of 144.718 mbu of soybeans during July is the second largest July crush recorded, behind July 2015. Meanwhile, soy oil stocks of 1.558 billion pounds on July 31 were the smallest since Dec 2016 stocks. Brazil has reportedly sold nearly 53.37 MMT of soybeans for export during 2017, which is 3.5% larger than the entire amount of soybeans shipped in 2016.

Sep 17 Soybeans are at $9.19 1/2, down 2 1/4 cents,

Nov 17 Soybeans are at $9.23 1/2, down 3/4 cent,

Jan 18 Soybeans are at $9.31 3/4, down 3/4 cent,

Mar 18 Soybeans are at $9.39 3/4, down 1 cent,

Sep 17 Soybean Meal is at $294.40, down $1.40

Sep 17 Soybean Oil is at $32.81, up $0.10

Wheat

Wheat futures are mostly 6 to 9 1/2 cents lower in the CBT and KC contracts at midday, as MPLS is 6 to 8 cents higher in the nearby contracts. Results of Taiwan’s tender for 98,850 MT of US wheat should be announced later today. Egypt’s GASC is tendering for wheat for late Sep shipment, with results expected later today. Russia presented the lowest offer, as the US didn’t place any offers.The Ukrainian wheat harvest is estimated at 98% complete according to their ag ministry, as an estimated 26 MMT have been harvested so far.

Sep 17 CBOT Wheat is at $4.20, down 9 1/2 cents,

Sep 17 KCBT Wheat is at $4.18 1/4, down 8 1/4 cents,

Sep 17 MGEX Wheat is at $6.66 1/4, up 8 cents

Cattle

Live cattle futures are 70 cents to $1.175 lower at midday. Feeder cattle futures are down $3.05 to $3.425 in the front months. The CME feeder cattle index was 58 cents lower than the previous day at $145.32 for August 14. Wholesale beef prices were lower in the Wednesday morning report, with choice down 36 cents at $198.59 and select boxes 27 cents lower at $195.67. The CH/SE spread is now at $2.99. Cash trade is still slow to develop this week, as bids of $110 are being reported this morning. The FCE online auction failed to sell any of the 1,184 head for sale this morning. Asking prices started out around $112, with the only lot being sold at $112 being passed on. Weekly FI cattle slaughter was estimated at 235,000 head through Tuesday, 2,000 fewer than last week but 10,000 larger than the same week last year.

Aug 17 Cattle are at $109.200, down $0.850,

Oct 17 Cattle are at $108.350, down $0.700,

Dec 17 Cattle are at $110.300, down $1.175,

Aug 17 Feeder Cattle are at $142.300, down $3.050

Sep 17 Feeder Cattle are at $143.325, down $3.425

Oct 17 Feeder Cattle are at $142.925, down $3.375

Lean Hogs

Lean hog futures are down $1.50 to $2.20 in the nearby contracts on Wednesday. The CME Lean Hog Index for 8/14 was 40 cents lower than the previous day at $84.38. The USDA pork carcass cutout value was $2.12 lower in the Wednesday morning report, with a weighted average of $91.73. The loin and ham were lower, with the belly down $15.54. The national base hog carcass was down 87 cents at $76.19 in the AM report. FI hog slaughter was estimated at 892,000 week to date through Tuesday, 72,000 head larger than the previous week and up 31,000 from the same week in 2016.

Oct 17 Hogs are at $68.325, down $2.200,

Dec 17 Hogs are at $63.000, down $1.700

Feb 18 Hogs are at $67.025, down $1.500

Cotton

Cotton futures are showing losses of 21 to 30 points in most contracts, with thinly traded Oct up 4 points. Pressure is coming from the US dollar again, as it is up 240 points. The Cotlook A index for August 15 was down 50 points from the previous day to 78.2 cents/lb. The USDA cotton AWP will be updated tomorrow, as it is 62.46 cents/lb through Thursday. The Seam reported cash sales of 2,171 bales on Tuesday, at an average price of 66.59cents/lb. India’s Ag Ministry estimates the country’s production at 33.09 million bales, up from 32.58 million bales last year. China sold 25,400 MT of the 29,500 MT offered at Wednesday’s auction of state reserves.

Oct 17 Cotton is at 67.72, up 4 points,

Dec 17 Cotton is at 66.86, down 30 points

Mar 18 Cotton is at 66.73, down 25 points

May 18 Cotton is at 67.390, down 21 points


Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
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