AgriCharts Market Commentary

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Corn Market Commentary

Corn futures are fractionally higher this morning after seeing losses of 4 to 4 3/4 cents in most contracts on Tuesday. There was heavy selling interest, with preliminary open interest jumping 26,602 contracts. Informa Economics estimates that US producers will plant 93.044 million acres of corn in 2019. That would be ~4 million acres more than this year. Condition ratings in NE and MN were higher in Monday’s report, with the three I states (IA, IL, & IN) slightly lower. North Carolina ratings were down as expected due to the hurricane. Very little harvest progress was shown despite a last minute push. Two South Korean importers purchased a total of 134,000 MT of corn on Tuesday.

Soybeans Market Commentary

Soybean futures are trading 1 to 3 cents higher this AM. They failed to show a turnaround on Tuesday, posting losses of 9 to 10 cents in the front months. Preliminary open interest rose 12,478 contracts. Soybean meal was down $2.40/ton, while soy oil was 31 points lower. China responded to President Trump implementing 10% tariffs on $200 billion, by placing 5-10% tariffs on $60 billion of US goods. Both are expected to go into effect on September 24. Analysts with Informa expect to see 82.27 million acres of soybeans planted in 2019, which would be ~7.33 million acres below 2018. NC condition ratings were down 15 points last week on the Brugler500 Index as expected due to Hurricane Florence.

Wheat Market Commentary

Wheat futures are mostly 4 to 8 cents higher this morning, with KC HRW the firmest. They ended the Tuesday session with most contracts 3 to 5 cents in the green. Global buying interest has really picked up in recent days, notably in North Africa and extending over to Saudi Arabia and now Turkey. Turkey is tendering for 252,000 MT of wheat, with the tender to close next Tuesday. Japan is seeking 149,586 MT of US, Canadian, and Australian wheat in the weekly MOA tender that closes on Thursday, with 78,710 MT sought from the US. Egypt’s GASC purchased 180,000 MT of wheat for Nov 1-10 delivery with 2 cargoes from Russia and 1 from Ukraine, with 295,000 MT all Russian for Nov 11-20 delivery. Ukraine’s Ag minister does not expect the country’s wheat exports to exceed 16 MMT, vs. the USDA @ 16.5 MMT.

Cattle Market Commentary

Live cattle futures settled with losses of 12.5 to 45 cents on Tuesday. Feeder cattle futures were down 45 cents to $1.50. The CME feeder cattle index September 17 average was up 24 cents at $153.62. Wholesale boxed beef values were lower on Tuesday afternoon. Choice boxes were down 75 cents to $205.29, while Select boxes were $1.91 lower at $195.47. USDA estimated FI cattle slaughter at 234,000 head through Tuesday, on revised Monday slaughter (-5,000 hd). That is down 4,000 from last week but 5,000 head above the same week in 2017. The show list for the Wednesday electronic auction is 528 head, all from Kansas.

Lean Hogs Market Commentary

Lean hog futures posted gains of 80 cents to $2.725 in most contracts on Tuesday. The CME Lean Hog Index was up $1.63 on September 14 to $53.48. The USDA pork carcass cutout value was $1.55 higher at $77.57 in the Tuesday afternoon FOB plant report. The national base hog carcass value was up $2.26 @ $52.92 on Tuesday afternoon. FI hog slaughter through Tuesday was estimated at 838,000 head. That is down 90,000 head from last week and 64,000 head from the same week last year, as NC slaughter plants are still closed.

Cotton Market Commentary

Cotton futures are 4 to 18 points lower this morning. They ended the Tuesday session with sharp 226 to 279 point losses in most contracts. The US activated close to $200 billion in new tariffs on Chinese consumer goods, effective September 24. Most are at the 10% level but will escalate to 25% at yearend if there is no trade deal. China responded with $60 billion in new tariffs on US exports to China, including some textiles. The weekly Crop Progress report indicated ratings in TX were up 16 points last week, with NC down 26 points. The Cotlook A index was up 20 points from the previous day at 91.30 cents/lb on September 13. The USDA AWP is 73.79 cents/lb, good through Thursday.

Market Commentary provided by:

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