Ag Market Commentary

Corn futures are up 7 3/4 to 8 3/4 cents at midday. Prices were technically oversold following the early week melt down and there is some bottom picking activity being attempted today. Thursday’s USDA Export Sales report showed continued softness in export sales. New crop sales totaled 307,591 MT, up 56% from the previous week but down 71% from the same week last year. Total export commitments for old crop corn are now 17% behind a year ago. Compared to the USDA export projection they are 94% complete, with the average pace at 104%. Shipments are 89% of that projection, with unshipped sales low for this time of year. South Korea purchased 63,000 MT in an international tender for corn to be delivered in January 2020. Areas of dryness and moderate drought are expanding in Indiana, Illinois and Iowa.

SEP 19 Corn is at $3.69 1/2, up 8 3/4 cents,

DEC 19 Corn is at $3.79 1/2, up 8 1/2 cents,

MAR 20 Corn is at $3.91 1/2, up 8 cents

MAY 20 Corn is at $3.99, up 7 3/4 cents

--- provided by Brugler Marketing & Management

Soybeans are stronger at midday, at 8 1/2 to 8 ¾ higher. Net new selling was again noted on Thursday, with preliminary open interest up 4,383 contracts. September soybean meal is up $3.10/ton, with soy oil 6 points lower. This morning to the U.S. Department of Agriculture said private exporters reported export sales of 296,500 metric tons of soybeans for delivery to unknown destinations during the 2019/2020 marketing year. Weekly new Crop sales on Thursday showed strong increases to 817,359 MT, 1.5 times larger than last week and 43% above the same week last year. There was a significant hike in “unknown destinations” which may be related to the old crop Chinese change. Basis is sloppy, from -.80 to -1.09 across Iowa, with basis weaker farther West and stronger to the East.

SEP 19 Soybeans are at $8.66 1/2, up 8 1/2 cents,

NOV 19 Soybeans are at $8.79 1/4, up 8 1/2 cents,

JAN 19 Soybeans are at $8.93, up 8 3/4 cents,

MAR 20 Soybeans are at $9.05 1/2, up 8 1/2 cents,

SEP 19 Soybean Meal is at $294.90, up $3.10,

SEP 19 Soybean Oil is at $29.13, up $0.06

-- provided by Brugler Marketing & Management

Wheat futures contracts at midday: CBOT wheat up 1 cent, KCBT wheat is higher 3 cents, and Minneapolis is higher 2 3/4 cents. The USDA Export sales report showed net sales of 462,224 for the week ending August 8, down 5.2% from last week and 42.4% lower than the same week last year. Japan purchased 106,700 MT, with South Korea at 106,200 MT. Egypt’s GASC purchased 295,000 MT of wheat Thursday, from Russia (175,000 MT) and Ukraine (120,000 MT). EU wheat production for 19/20 was raised by 2.3 MMT to 142.9 MMT on Thursday by Strategie Grains, with their export projection increased 2.9 to 24.8 MMT. Ukraine completed its wheat harvest with an estimated production of 38.5 MMT.

SEP 19 CBOT Wheat is at $4.70, up 1 cent,

SEP 19 KCBT Wheat is at $3.92 3/4, up 3 cents,

SEP 19 MGEX Wheat is at $5.05 1/2, up 2 3/4 cents

--- provided by Brugler Marketing & Management

Live cattle futures are higher at midday. August is up $.55, with deferred contracts higher by $.30-$.40. Feeder cattle futures are also rising. The front months show increases of $.325-$.425. The CME Feeder Cattle Index was down 74 cents on August 14 at $139.15. Wholesale boxed beef prices continued their sharp rise on Labor Day wholesale buying and tight supplies. Choice boxes were higher again Friday midday by $3.78 to $237.85, with Select boxes $2.00 higher @ $212.67. The USDA estimated the week to date FI cattle slaughter at 463,000 head, 13,000 head less than the previous week and 11,000 head below the same week last year. There were a few live purchases reported in the North, with prices reported at $105-106.

AUG 19 Cattle are at $100.750, up $0.550,

OCT 19 Cattle are at $98.925, up $0.400,

DEC 19 Cattle are at $104.575, up $0.300,

AUG 19 Feeder Cattle are at $136.200, up $0.425

SEP 19 Feeder Cattle are at $133.650, up $0.350

OCT 19 Feeder Cattle are at $134.075, up $0.325

-- provided by Brugler Marketing & Management

Lean Hog futures are lower at midday. October is down $2.15 and deferred months weaker $1.55 to $2.125. The CME Lean Hog Index was down $1.97 at $77.89 on August 14. USDA showed pork export sales of 20,393 MT in the week of August 8, with 10,211 MT sold to China. Shipments were 26,413 MT, as 6,835 MT was headed to China. China’s hog herd in July was down 32% from July 2018 according to official sources. The USDA pork carcass cutout value was down .41 cents on Friday midday at $87.823. The national average base hog value was 1.23 cents lower in the Friday morning report at $68.91. Estimated week to date FI hog slaughter is 1.900 million head, a 48,000 head increase from the previous week and 43,000 head more the same week a year ago.

OCT 19 Hogs are at $62.850, down $2.150,

DEC 19 Hogs are at $61.625, down $2.125

FEB 19 Hogs are at $68.700, down $1.550

--- provided by Brugler Marketing & Management

Cotton futures prices are improving in midday trading, up 25 to 42 points. The weekly Export Sales report from USDA showed 19/20 bookings of 329,140 RB in the week that ended on August 8. That sales total was more than 4 times the same week last year. Sales for 2020/21 were tallied at 151,181 RB, with 117,920 RB sold to Chinese buyers. Shipments of 274,150 RB were reported, with 11,950 RB to China and 57,700 RB headed to Vietnam. The Cotlook A Index was unchanged on August 15 at 70.90 cents/lb. The weekly AWP is 52.22 cents/lb, a slight decline from last week but still above loan rate. The “costs to market” adjustment for the 2019/20 crop year is 15.20 cents/lb and is included in the calculation of the AWP. It became effective August 9, 2019. Dry conditions continue in Texas, with very limited precipitation seen in the next 5 days.

OCT 19 Cotton is at 60, up 34 points,

DEC 19 Cotton is at 60.04, up 42 points

MAR 20 Cotton is at 60.57, up 33 points

MAY 20 Cotton is at 61.41, up 25 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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