Ag Market Commentary

Corn futures closed 6 1/4 to 7 3/4 cents lower in the front months on Wednesday. This morning’s EIA report for the week ending August 9, showed the weekly ethanol production at 1.045 million barrels/day, a 5,000 bpd increase. Ethanol stocks ballooned 766,000 barrels to 23.883 million barrels as production exceeded consumption. Each of the five regions saw a jump from last week, with the Midwest and West Coast showing the largest increase. Ahead of the Thursday morning USDA Export Sales report, corn export sales estimates are running 100,000-300,000 metric tons (MT) for 18/19 and 100,000-400,000 MT for 19/20.

SEP 19 Corn closed at $3.59, down 7 cents,

DEC 19 Corn closed at $3.70 1/4, down 6 1/4 cents,

MAR 20 Corn closed at $3.83 1/4, down 6 3/4 cents

MAY 20 Corn closed at $3.91, down 7 3/4 cents

-- provided by Brugler Marketing & Management

Soybean futures dropped 10 to 11 cents in the front months on Wednesday, with Aug expiring at $8.61. August soybean meal closed at $293.00/ton, with August soy oil at $29.10. Ahead of Thursday’s NOPA crush report, analysts expect to see 155.623 mbu of soybenas crushed by its members during July. Parts of the WCB are expected to receive significant rainfall over the next 7 days while the ECB sees more limited quantities. A Reuters poll shows estimates of 50,000-300,000 MT for old crop and 100,000-400,000 MT for new crop ahead of Thursday’s USDA Export Sales report. Total soybean meal sales estimates are 175,000 –400,000 MT, with soy oil at 8,000-32,000.

AUG 19 Soybeans closed at $8.61, down 11 cents,

SEP 19 Soybeans closed at $8.65 1/2, down 10 3/4 cents,

NOV 19 Soybeans closed at $8.78, down 11 cents,

JAN 20 Soybeans closed at $8.91 1/2, down 10 1/2 cents,

AUG 19 Soybean Meal closed at $293.00, down $4.80,

AUG 19 Soybean Oil closed at $29.10, down $0.07

--provided by Brugler Marketing & Management

Wheat futures saw 1 3/4 to 2 1/4 cent gains across the three exchanges on Wednesday, with some help from a little short covering. Trade estimates ahead of the USDA weekly Export Sales report are 200,000-500,000 MT for wheat, with last week’s total at 487,672 MT. Taiwan purchased 94,950 MT of US wheat in their tender on Wednesday for Oct/Nov delivery. Egypt’s GASC is tendering for wheat with mid-late Sept delivery, with the tender to close on Thursday.

SEP 19 CBOT Wheat closed at $4.73 3/4, up 1 3/4 cents,

SEP 19 KCBT Wheat closed at $3.84 3/4, up 1 1/4 cents,

SEP 19 MGEX Wheat closed at $5.05 1/2, up 2 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures ended 35 to 75 cents lower in the front months on Wednesday, with deferred contracts higher. Feeder cattle futures surged, with nearby Aug up the $6.75 expanded limit and back months $4.15 to $5.825 higher. Feeders will show expanded limits for the third consecutive day on Thursday. The CME Feeder Cattle Index was down 12 cents on August 13 at $139.89. On Wednesday, the Choice boxes were up $5.98 at $232.34, with Select boxes $5.34 higher @ $205.92. The Chc/Sel spread widened to $26.42. USDA estimated the week to date FI cattle slaughter at 347,000 head, down 8,000 head from the previous week and 7,000 head below the same week last year. Wednesday’s FCE saw 3 of the 4 lots sold at $105, $5 above August futures. USDA reported light $105 sales in the South, with some cattle exchanging hands at $105-106.50 live and $170-172 dressed in the North. Trade was still light on Wednesday.

AUG 19 Cattle closed at $100.200, down $0.350,

OCT 19 Cattle closed at $98.500, down $0.750,

DEC 19 Cattle closed at $104.550, up $0.600,

AUG 19 Feeder Cattle closed at $134.475, up $6.750

SEP 19 Feeder Cattle closed at $132.825, up $5.625

OCT 19 Feeder Cattle closed at $133.375, up $5.825

--provided by Brugler Marketing & Management

Lean Hog futures were $1.75 to $2.00 higher in the front months on Wednesday, with expiring Aug 40 cents higher. The CME Lean Hog Index was down 80 cents at $80.95 on August 12. The USDA pork carcass cutout value was down 31 cents on Wednesday afternoon at $88.90. The national average base hog value was dropped 56 cents in the Wednesday PM report at $69.47. Estimated FI hog slaughter for week to date was 1.417 million head, a 41,000 head increase from the previous week and 15,000 head more the same week a year ago.

AUG 19 Hogs closed at $79.400, up $0.400,

OCT 19 Hogs closed at $66.775, up $2.200

DEC 19 Hogs closed at $64.775, up $1.750

---provided by Brugler Marketing & Management

Cotton futures saw some strength on Wednesday, with the front month 2 to 34 points higher. USDA will release the weekly Export Sales report on Thursday morning, with a look at the first full week of the 19/20 MY. A Chinese auction of state reserves saw 11,234 MT of cotton sold, which was 95.71% of the amount offered. The Cotlook A was down 75 points on August 13 at 69.60 cents/lb. The weekly AWP is 52.67 cents/lb and will be updated on Thursday.

OCT 19 Cotton closed at 59.68, up 34 points,

DEC 19 Cotton closed at 59.5, up 9 points

MAR 20 Cotton closed at 60.18, up 13 points

MAY 20 Cotton closed at 61.03, up 2 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

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.