AgriCharts Market Commentary

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Corn Market Fractionally Higher After Wednesday Support

Corn futures are fractionally higher this morning after being up 1 1/2 to 3 cents on Wednesday. Traders are expecting a wide range of old crop export sales in the week of August 15 at 50,000-400,000 MT, with new crop at 200,000-600,000 MT. Losses in corn from last week made US FOB prices more competitive with South American offers, but they are still at a premium. Average EIA ethanol production for the week ending August 16 was 1.023 million barrels per day. That was down 22,000 bpd from the previous week and the slowest since early April. Ethanol stocks dropped 516,000 barrels to 23.367 million barrels. Reports on Tuesday showed ethanol plants idling or slowing production across the country due to poor margins. The ProFarmer Midwest Crop Tour found an Illinois average yield of 171.17 bpa vs. 192.63 last year. That’s down 11%, but USDA currently has Illinois corn yield down 14% from year ago.

--- provided by Brugler Marketing & Management

Soybeans Up 1 to 2 Cents Overnight

Soybeans futures are trading 1 to 2 cents per bushel higher this morning. They ended Wednesday 4 3/4 to 5 cents higher in the nearby contracts. Preliminary open interest showed a hint of new buying interest, rising 2,320 contracts. Meal futures were up $.70/ton and soy oil 31 points higher. The 8-14 day outlook shows chances for below normal temperatures as we head into September. Ahead of Thursday’s Export Sales report, analysts are expecting a net reduction of 200,000 up to net sales of 100,000 MT of old crop soybeans in the week of 8/15. New crop bookings are seen at 350,000-700,000 MT. Soy meal sales are seen at 100,000-350,000 MT, with soybean oil at 5,000-25,000 MT. The ProFarmer Midwest Crop Tour was in Illinois yesterday and will wrap up the tour today.

--- provided by Brugler Marketing & Management

Wheat Market Trading Mixed Ahead of Export Sales

Wheat futures steady to 2 cents higher in the hard wheat markets this morning, and fractionally lower in Chicago SRW. They also finished mixed on Wednesday. CBOT closed higher by 2 1/2 cents, KCBT was down 1/2 cent, and MGEX ended 1 3/4 cents lower. Preliminary open interest rose 2,998 contracts in Chicago on the higher trade. This morning’s Export Sales report is expected to show 300,000-500,000 MT of wheat booked in the week that ended on August 15. US SRW FOB prices are uncompetitive on the world market. US SRW FOB prices are $203.26/MT vs. French at $182.59/MT and US HRW @ $173.06/MT.

--- provided by Brugler Marketing & Management

Cattle Market Cautiously Follows Beef Higher

Live cattle futures ended 22.5 to 87.5 cents higher on Wednesday. Feeder cattle futures settled 90 cents to $1.575 higher. The CME Feeder Cattle Index was 8 cents lower on August 20 at $137.18. Wholesale boxed beef prices were higher on Wednesday. Choice boxes were up 4 cents at $241.74, with Select boxes $1.43 higher @ $215.70. The USDA estimated the week to date FI cattle slaughter through Wednesday at 347,000 head, the same as the previous week, and 5,000 head below the same week last year. Little cash action has taken place so far this week, with the FCE showing asks of $108.25 in the North and $107 in the South on Wednesday, both passed by packers.

--- provided by Brugler Marketing & Management

Lean Hog Bulls Still Lack Traction

Lean Hog futures were 97.5 cents to $1.675 lower in the nearby contracts on Wednesday. The CME Lean Hog Index was down 56 cents at $77.99 on August 19. The USDA pork carcass cutout value was up 72 cents on Wednesday morning at $84.63. The national average base hog value was down $2.18 in the Wednesday AM report at $66.89. By region, IA/MN was down $2.75, with the WCB $4.70 lower. Estimated weekly FI hog slaughter through Tuesday was 1.444 million head, a 27,000 head increase from the previous Tuesday and 60,000 head more than the same Wednesday a year ago.

--- provided by Brugler Marketing & Management

Cotton Market 21 to 30 Points Higher Ahead of Export Data

Cotton futures are trading 21 to 30 points lower this morning. They were up 34 to 77 points in most contracts at midday. USDA will release their weekly Export Sales report shortly, showing data for the week ending 8/15. Traders were thought to be covering their short positions ahead of the report. At an auction of state reserves on Wednesday, China sold 10,455 MT of cotton, totaling 92.67% of the amount offered. The Cotlook A Index was down 90 points on August 20 at 70.50 cents/lb. The weekly AWP is 52.22 cents/lb and will be updated on Thursday.

--- 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