Ag Market Commentary

Corn futures closed the Wednesday session with most contracts firm to 3 1/4 cents higher. Weekly ethanol data from the EIA show production in the week of September 13 at 1.003 million barrels per day. That is down 20,000 bpd from the week prior and the lowest since early April. Stocks of ethanol rose 739,000 barrels to 23.238 million barrels by the end of that week. USDA is expected to show new crop corn sales in a range of 0.9-1.3 MMT in Thursday’s Export Sales report. That would be better than the 498,090 MT reported last week, with US FOB prices still relatively high (vs. South America) on the world market. USDA did report private daily export sales announcements of ~982,056 MT to Mexico during the week of 9/12.

DEC 19 Corn closed at $3.71 1/4, up 3 1/4 cents,

MAR 19 Corn closed at $3.82 1/2, up 2 1/2 cents,

MAY 20 Corn closed at $3.90 1/4, up 2 cents

JUL 20 Corn closed at $3.96 1/2, up 1 1/2 cents

-- provided by Brugler Marketing & Management

Soybeans futures ended Wednesday with 4 to 5 cent losses in the front months. Soybean meal was down $2.50/ton, with soy oil 2 points higher. Forecasts call for above normal temps and slightly higher than average precip for much of the Midwest via the 6-10-day forecast. There is little to threaten the delayed crop in the immediate future, which added pressure on Wednesday. Trade estimates ahead of Thursday’s Export Sales report show a total of 0.7-1.1 MMT in 19/20 soybean sales in the week that ended on 9/12. There was 138,000 MT reported for sales to Mexico, though it is unclear if the sales of ~720,000 MT to China will be reported for that week or the week ending 9/19. US still has the cheapest FOB prices vs. the South American countries. Meal sales are seen at 50,000-450,000 MT, with soybean oil at 0-35,000 MT.

NOV 19 Soybeans closed at $8.88 3/4, down 5 cents,

JAN 19 Soybeans closed at $9.02 1/4, down 5 cents,

MAR 20 Soybeans closed at $9.15 1/4, down 4 1/4 cents,

MAY 20 Soybeans closed at $9.26 1/4, down 4 cents,

OCT 19 Soybean Meal closed at $291.60, down $2.50,

OCT 19 Soybean Oil closed at $29.87, up $0.02

-- provided by Brugler Marketing & Management

Wheat futures saw 4 to 7 1/2 cent gains in most contracts on Wednesday. Egypt’s GASC purchased 180,000 MT of Russian wheat in their tender on Wednesday for late October delivery. No US offers were reported as Reuters shows FOB prices for SRW ~$30/ton above major foreign competitors. US HRW is not as cheap as it was earlier in the FOB market. USDA is expected to tally US export bookings during the week of September 12 in a range of 300,000-600,000 MT. Algeria purchased a reported 600,000 MT of optional origin wheat on Wednesday, most likely French origin. Another purchase of 250,000 MT optional origin wheat by Turkey was also reported on Wednesday.

DEC 19 CBOT Wheat closed at $4.89 1/2, up 5 1/4 cents,

DEC 19 KCBT Wheat closed at $4.09 3/4, up 7 1/2 cents,

DEC 19 MGEX Wheat closed at $5.13 1/4, up 6 3/4 cents

Source: Brugler Marketing & Management

Live cattle futures posted 35 cent to $1.025 gains in most contracts on Wednesday. Feeder cattle futures were up a quarter to $1.25 on the day. The CME Feeder Cattle Index was up 21 cents on September 17 at $137.33. Wholesale boxed beef prices were lower on Wednesday afternoon, with the Chc/Sel spread widening out to $26.27. Choice boxes were down $1.53 at $218.24, with Select boxes $1.94 lower @ $191.97. USDA estimated week to date FI cattle slaughter @ 351,000 head. That is down 1,000 head from the same week last year and a 3,000 rise from the previous week. Wednesday morning’s FCE saw 281 head of the 1,229 offered in sales at $101 in KS and $101.25. Trade estimates for Friday’s COF report are for August placements to be down 6.3% from last year at 1.94 million head. Marketings are seen 1.7% lower at 1.95 million head.

OCT 19 Cattle closed at $100.375, up $1.025,

DEC 19 Cattle closed at $106.150, up $0.850,

FEB 20 Cattle closed at $112.375, up $0.600,

SEP 19 Feeder Cattle closed at $139.875, up $0.700

OCT 19 Feeder Cattle closed at $138.400, up $1.100

NOV 19 Feeder Cattle closed at $136.300, up $1.250

-- provided by Brugler Marketing & Management

Lean Hog futures settled 12.5 cents to $1.275 higher in most contracts on Wednesday. The cash side of the business is still weak. The CME Lean Hog Index was down another 99 cents at $57.49 on September 16. The USDA pork carcass cutout value FOB plant was down a dime on Wednesday afternoon at $68.11. The national average base hog value was down 29 cents at $44.80 on Wednesday. Estimated FI hog slaughter was 1.463 million head through Wednesday. That was well above the same week in 2018 and 6,000 head above last week.

OCT 19 Hogs closed at $62.925, up $0.825,

DEC 19 Hogs closed at $67.800, up $0.125

FEB 20 Hogs closed at $74.825, up $1.275

-- provided by Brugler Marketing & Management

Cotton futures were down 62 to 97 points in most contracts on the day. As expected, the Fed cut interest rates by 0.25% following their two-day meeting. The dollar rallied 320 points after the announcement in “sell the rumor, buy the fact” action. Crude oil was down another 1.9% on Wednesday, after the Saudis indicated that they would fill in missing crude oil production from reserves. The Cotlook A Index was up 5 points on September 17 at 73.70 cents/lb. The weekly AWP is 52.28, effective through Thursday.

OCT 19 Cotton closed at 59.5, down 62 points,

DEC 19 Cotton closed at 60.41, down 97 points

MAR 20 Cotton closed at 61.17, down 69 points

MAY 20 Cotton closed at 62.23, down 68 points

-- provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

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