Ag Market Commentary

Corn futures closed the Wednesday session with most contracts fractionally to 2 1/4 cents lower. Reports on Wednesday showed that the White House is urging the biofuel industry to take a deal that would increase the blend mandate. Weekly EIA data showed ethanol production during the week that ended on September 6 at 1.023 million barrels per day. That was up 10,000 bpd from the week prior and 3,000 larger than the first week of the 18/19 MY. Ethanol stocks were down a sharp 1.302 million barrels to 22.499 million barrels, with all regions but the West Coast reducing stocks. USDA is expected to show new crop corn sales of 500,000-900,000 MT during the week of 9/6 in the weekly Export Sales report tomorrow. Ahead of Thursday’s WASDE update, analysts are expecting USDA to increase old crop corn world carryout by 0.75 MMT to 329.33 MMT, mainly on a jump to the US number. New crop carryout seen at 303.18 MMT, down 4.52 from August.

SEP 19 Corn closed at $3.48 1/4, down 1/4 cent,

DEC 19 Corn closed at $3.60, down 1 1/2 cents,

MAR 20 Corn closed at $3.72 1/4, down 2 1/4 cents

MAY 20 Corn closed at $3.81 3/4, down 1 3/4 cents

-- provided by Brugler Marketing & Management

Soybeans futures ended the day with the nearby contracts 5 to 5 1/2 cents lower. Soybean meal was down $3.30/ton, with soy oil 35 points higher. The trade range of estimates for the weekly Export Sales report is net reductions of 50,000 to sales of 50,000 MT for old crop sales in the last couple days of the MY. New crop is seen in a range of 0.6 to 1.1 MMT for the week that ended on September 5. The WAOB is expected to show a slight reduction in old crop world soybean ending stocks to 114.23 MMT on Thursday. The average estimate for new crop is 100.11 MMT, which would be down 1.63 MMT from August. China is signing an agreement permitting importation of Argentine soybean meal, again diversifying suppliers.

SEP 19 Soybeans closed at $8.54, down 5 1/4 cents,

NOV 19 Soybeans closed at $8.66 1/2, down 5 1/2 cents,

JAN 20 Soybeans closed at $8.80 1/2, down 5 1/4 cents,

MAR 20 Soybeans closed at $8.94, down 5 cents,

SEP 19 Soybean Meal closed at $289.60, down $3.30,

SEP 19 Soybean Oil closed at $28.73, up $0.35

-- provided by Brugler Marketing & Management

Wheat futures saw most contracts steady to 7 cents lower on Wednesday. The weekly FAS Export Sales report is expected to show 300,000-600,000 MT in all wheat export sales for 19/20. Prior to Thursday’s USDA reports, traders are estimating 19/20 world wheat stocks to rise slightly to 284.71 MMT. Old crop world stocks are seen ticking higher to 274.6 MMT. The French Farm Ministry pegs the country’s wheat protein content at 11.5%, which is down from 12% last year.

DEC 19 CBOT Wheat closed at $4.77 1/2, down 4 3/4 cents,

DEC 19 KCBT Wheat closed at $3.98 1/2, down 5 1/4 cents,

DEC 19 MGEX Wheat closed at $5.02 1/4, down 1 1/2 cents

Source: Brugler Marketing & Management

Live cattle futures posted $1.75 to $2.40 gains in the front months on the day. Feeder cattle futures were up $2.175 to $2.975. The CME Feeder Cattle Index was 20 cents lower on September 10 at $137.17. Wholesale boxed beef prices were lower on Wednesday afternoon, tightening the Chc/Sel spread to $21.49. Choice boxes were down a sharp $5.49 at $219.89, with Select boxes $2.58 lower @ $198.40. The latter are down more than 5% since the Labor Day holiday. USDA estimated week to date FI cattle slaughter @ 348,000. That is down 11,000 head from the same week a year ago. Wednesday’s FCE auction packers with bids of $99 on 318 of the 636 head offered, with feedlots passing on both bids.

OCT 19 Cattle closed at $98.500, up $2.350,

DEC 19 Cattle closed at $103.625, up $2.400,

FEB 20 Cattle closed at $110.175, up $1.750,

SEP 19 Feeder Cattle closed at $136.075, up $2.175

OCT 19 Feeder Cattle closed at $134.025, up $2.975

NOV 19 Feeder Cattle closed at $133.550, up $2.850

-- provided by Brugler Marketing & Management

Lean Hog futures were down 57.5 cents to $2.55 in most contracts on Wednesday. Pork was left off a Chinese list of tariff exemptions of 16 US products. The CME Lean Hog Index was down another 76 cents at $62.99 on September 9. The USDA pork carcass cutout value FOB plant was up 46 cents on Wednesday afternoon at $72.45. The national average base hog value was $1.50 lower at $47.27. Estimated FI hog slaughter was 1.457 head through Wednesday, 117,000 head above the same week in 2018. We will have to have a number of weeks later this fall with 2.5-2.6 million head runs.

OCT 19 Hogs closed at $60.175, down $2.550,

DEC 19 Hogs closed at $61.200, down $0.575

FEB 20 Hogs closed at $67.600, down $1.550

-- provided by Brugler Marketing & Management

Cotton futures settled mixed on Wednesday, with nearby Oct down 10 points and other front months 3 to 11 points higher. China has given tariff exemptions on 16 US products, though it does not include any of the main ag goods. USDA will give us an updated look at the US and World balance sheets on Thursday. The Cotlook A Index was down 45 points on September 10 at 70.60 cents/lb. The weekly AWP is 51.57, below loan rate and will be updated on Thursday.

OCT 19 Cotton closed at 59.4, down 10 points,

DEC 19 Cotton closed at 59.37, up 3 points

MAR 20 Cotton closed at 60.03, up 4 points

MAY 20 Cotton closed at 60.72, up 11 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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