AgriCharts Market Commentary

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Corn Slightly Higher on Thursday

Corn futures saw 1 to 1 1/2 cent gains in the front months on Thursday, boosted by export sales data. USDA reported weekly export sales of 1.464 MMT (57.6 million bushels) for the week ending September 12, stronger than what traders were expecting heading into today. That was the largest week 2 sales total since 07/08. Much of the business was sales to Mexico (1.158 MMT), most of which had been previously reported. A total of 64,914 MT was sold for 20/21. A trade delegation from Taiwan signed a Memorandum of Understanding with purchase commitments of 5 MMT of corn and 500,000 MT of DDGs over the next 2 years. That is on the high side of their historical annual MY range of purchases from the US.

DEC 19 Corn closed at $3.72 3/4, up 1 1/2 cents,

MAR 19 Corn closed at $3.84, up 1 1/2 cents,

MAY 20 Corn closed at $3.91 3/4, up 1 1/2 cents

JUL 20 Corn closed at $3.97 1/2, up 1 cent

-- provided by Brugler Marketing & Management

Soybeans Post Gains on Positive Export Sales

Soybeans futures closed the Thursday session with most contracts 2 to 4 1/4 cents higher. Soybean meal was up 60 cents/ton, with soy oil 6 points lower. Chinese trade negotiators were in DC on Thursday to lay groundwork for the higher-level talks in October. This morning’s Export Sales report showed 19/20 bookings of 1.728 MMT (63.48 million bushels) in the week that ended on 9/12, beating out the top end of estimates of 1.1 MMT. Of that total, China was nominated for 593,221 MT, with another 427,400 MT labeled unknown destinations. USDA indicated 435,800 MT for bean meal sales, with soy oil totaling 20,600 MT.

NOV 19 Soybeans closed at $8.93, up 4 1/4 cents,

JAN 19 Soybeans closed at $9.06, up 3 3/4 cents,

MAR 20 Soybeans closed at $9.18 1/4, up 3 cents,

MAY 20 Soybeans closed at $9.28 3/4, up 2 1/2 cents,

OCT 19 Soybean Meal closed at $292.20, up $0.60,

OCT 19 Soybean Oil closed at $29.81, down $0.06

-- provided by Brugler Marketing & Management

Wheat Closes Mixed on Thursday

Wheat futures were mostly steady to 2 cents lower in the winter wheat contracts, with MPLS up 4 to 7 cents on Thursday. USDA Export Sales data showed bookings of just 286,600 MT, a 53% decline from the previous week. That was below the range of estimates and near a MY low. Commitments of 19/20 wheat are still 20.4% larger than they were at this time last year. French consulting firm Strategie Grains raised its estimate for EU wheat production by 1.6 MMT to 144.5 MMT.

DEC 19 CBOT Wheat closed at $4.88, down 1 1/2 cents,

DEC 19 KCBT Wheat closed at $4.09 1/2, down 1/4 cent,

DEC 19 MGEX Wheat closed at $5.20 1/4, up 7 cents

Source: Brugler Marketing & Management

Cattle Show Mixed Trade on Thursday

Live cattle futures settled 32.5 to 57.5 cents lower in the nearby contracts, with other contracts higher. Cash trade after the close was mostly $101 in the South. Feeder cattle futures were steady to 95 cents higher in the front months. The CME Feeder Cattle Index was down 4 cents on September 17 at $137.29. Wholesale boxed beef prices were mixed on Thursday afternoon, with the Chc/Sel spread at $26.01. Choice boxes were down 7 cents at $218.17, with Select boxes 19 cents higher at $192.16. USDA estimated week to date FI cattle slaughter through Wednesday @ 467,000 head. That is down 3,000 head from the same week last year and a 5,000 rise from the previous week. USDA reported weekly beef export sales of 16,575 MT, down 8% from the previous week. South Korea was the largest buyer at 4000 MT. Shipments were at a 6-week high of 17,132 MT.

OCT 19 Cattle closed at $99.800, down $0.575,

DEC 19 Cattle closed at $105.825, down $0.325,

FEB 20 Cattle closed at $112.525, up $0.150,

SEP 19 Feeder Cattle closed at $139.950, up $0.075

OCT 19 Feeder Cattle closed at $138.925, up $0.525

NOV 19 Feeder Cattle closed at $137.250, up $0.950

-- provided by Brugler Marketing & Management

Hogs Mostly Higher on Thursday

Lean Hog futures were steady to $1.325 higher in most contracts on Thursday, with Oct down $1.525. Cash is still falling and showing a ~$5 discount. The CME Lean Hog Index was down another 73 cents at $56.76 on September 17. The USDA pork carcass cutout value FOB plant was up 91 cents from yesterday at $69.02. The national average base hog value was down 25 cents at $44.48 on Thursday. Estimated week to date FI hog slaughter was 1.951 million head through Thursday. That was well above the same week in 2018 and 8,000 head above last week. USDA reported weekly pork export sales for the week ending September 12 totaled 14,200 MT, down 35% from the previous week. Traders had been hoping to see Chinese business, given their activity in soybeans, but nothing showed up. South Korea was the largest buyer at 3,000 MT. China did continue to ship previously purchased pork, with 5,900 MT loaded out for the week. Total shipments were at 24,278 MT.

OCT 19 Hogs closed at $61.400, down $1.525,

DEC 19 Hogs closed at $67.950, up $0.150

FEB 20 Hogs closed at $75.050, up $0.225

-- provided by Brugler Marketing & Management

Cotton Modestly Lower on Thursday

Cotton futures were down 14 points in several nearby contracts on Thursday, with nearby Oct up 2 points. USDA reported cotton export sales for the week ending September 12 totaled 84,999 running bales for upland, with another 19,300 RB booked for 2020/21. China cancelled another 39,317 RB of old crop purchases. Shipments totaled 166,602 RB in that week, slightly below the previous week. A total of 11,862 MT of cotton was sold from Chinese state reserves on Thursday, totaling 99.08% of the amount offered. The Cotlook A Index was down 130 points on September 18 at 72.40 cents/lb. The weekly AWP is 54.62, effective through next Thursday. That is up 2.34 cents from the previous week.

OCT 19 Cotton closed at 59.38, up 2 points,

DEC 19 Cotton closed at 60.36, down 14 points

MAR 20 Cotton closed at 61.08, down 14 points

MAY 20 Cotton closed at 62.11, down 14 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
E-mail: alanb@bruglermktg.com
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