Ag Market Commentary

Corn futures are 1 to 2 cents higher this morning. Futures settled 5 1/2 to 5 ¾ cents lower on Tuesday, as additional rainfall either fell or was predicted for many of the dry pockets in the Corn Belt. There was active rolling of positions out of September into December ahead of options expiration this Friday. Later on Tuesday, Poet Biofuels announced the idling of their Cloverdale plant indefinitely, citing recent EPA small refinery waivers for reduced demand. They also announced half of the Poet plants will run at reduced production. The ProFarmer Midwest Crop Tour found a Nebraska average yield of 172.55 bpa vs. 179.17 last year. The Indiana average was 161.46 bpa vs. 182.33 LY. Monday’s Crop Progress report showed condition ratings on the Brugler500 Index rising in IL (+6), IN (+2) and ND (+6). They were down 2 points in IA and 7 points lower in MO, with NE and MN deteriorating 3 points.

--- provided by Brugler Marketing & Management

Soybeans futures are 3 1/2 to 4 1/2 cents per bushel higher in the nearby contracts in early trading Wednesday. Meal futures are up $1.20/ton and soy oil is up 17 points. Preliminary open interest for soybeans rose 3,168 contracts on Tuesday, suggesting some light buying interest. Losses in soybean crop ratings last week helped to support the market Tuesday. Monday’s conditions by state showed Brugler500 ratings up 7 points in IL, 5 in SD, and 2 points higher in IN. Conditions in IA were down 5 points, with MO 4 points lower and NE down 3. Results from day two of the Midwest Crop Tour had pod counts in Nebraska down 7% from last year. The average count in Indiana was down 30%. Source: Brugler Marketing & Management.

Wheat futures are steady to 3 cents lower this morning, with MPLS spring wheat the firmest. Large world supply combined with increasing production in Ukraine and the EU pressured prices. Nearby French milling wheat futures closed at the lowest point since April 2018. Cash wheat prices there are reportedly about $186/MT vs. $245 following the more seriously drought hit crop a year ago. The weekly Crop Progress report from NASS on Monday showed spring wheat ratings in MN down 2 points on the Brugler500 index. ND conditions were unch, with SD up 7 points. Japan’s weekly MOA tender is for 110,057 MT of wheat sourced from the US and Canada, with 58,332 MT US specific.

--- provided by Brugler Marketing & Management

Live cattle futures were 27 to 177 higher on Tuesday. Preliminary open interest rose in the December and later contracts. Feeder cattle futures were 45 to 90 cents higher on Tuesday and are getting closer to the Index. The CME Feeder Cattle Index was higher by $.91 on August 19 at $137.24. August futures expire on 8/29. Wholesale boxed beef prices were mixed on Tuesday afternoon. Choice boxes were up $2.57 at $241.70, with Select boxes 25 cents lower @ $214.27. Trade ideas ahead of the Friday COF report put Cattle on Feed @ 100.8% compared to last August 1. July marketing are seen at 106.4% of last July, with placements up 0.1%. The USDA estimated the week to date FI cattle slaughter thru Tuesday was 231,000 head, the same as the previous week, and 4,000 head below the same week last year.

-- provided by Brugler Marketing & Management

Lean Hog futures traded $.22 to $1.32 higher on Tuesday, with December the strongest. The CME Lean Hog Index was down 47 cents at $78.55 on August 16. The USDA pork carcass cutout value was down $1.07 on Tuesday afternoon to $83.91. The national average base hog value was 60 cents lower in the Tuesday PM report at $69.18. Estimated weekly FI hog slaughter thru Tuesday was 962,000 head, a 28,000 head increase from the previous Monday and 51,000 head more than the same Tuesday a year ago.

--- provided by Brugler Marketing & Management

Cotton futures are 20 to 52 points lower this morning. Monday’s Crop Progress report indicated 32% of the bolls in TX opening as of Sunday, compared to the 15% average. In GA, 22% of the crop had bolls opening vs. the normal pace of 10%. Condition ratings were down 14 points on the Brugler500 index overall, with TX 20 points lower on the week and GA up 5. The Cotlook A Index was unchanged on August 19 at 71.40 cents/lb. The weekly AWP is 52.22 cents/lb through Thursday.

--- 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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