Ag Market Commentary

Corn futures are showing fractional to 1 1/4 cent gains at midday. USDA reported a private export sale of 328,000 MT of corn for 19/20 delivery to Mexico through their daily reporting system this morning. Weekly ethanol data from EIA showed production in the week that ended on August 16 at 1.023 million barrels per day. That was down 22,000 bpd from the previous week and the lowest output since early April. Ethanol stocks dropped 516,000 barrels to 23.367 million barrels. Reports on Tuesday showed ethanol plants idling or slowing production across the country due to poor margins. 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. Today is your last chance to submit results for the Brugler Virtual Corn Tour! Traders are expecting a wide range of old crop export sales in the week of August 15 at 50,000-400,000 MT, with new crop at 200,000-600,000 MT.

SEP 19 Corn is at $3.60 3/4, up 1 1/4 cents,

DEC 19 Corn is at $3.69, up 1/4 cent,

MAR 20 Corn is at $3.81 1/2, up 1/4 cent

MAY 20 Corn is at $3.89 1/2, up 3/4 cent

--- provided by Brugler Marketing & Management

Soybeans futures are trading 5 to 5 1/2 cents higher in the nearby contracts at midday. Meal futures are up $1/ton and soy oil 34 points higher. The 8-14 day outlook shows chances for below normal temperatures as we head into September. Ahead of Thursday’s Export Sales report, analysts are expecting a net reduction of 200,000 up to net sales of 100,000 MT of old crop soybeans in the week of 8/15. New crop bookings are seen at 350,000-700,000 MT. Soy meal sales are seen at 100,000-350,000 MT, with soybean oil at 5,000-25,000 MT. 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%. Of the states being surveyed, IN had the lowest % of the crop setting pods (50%) as of Sunday. The tour is in Illinois and Iowa today, with the last leg wrapping up on Thursday.

SEP 19 Soybeans are at $8.60 3/4, up 5 cents,

NOV 19 Soybeans are at $8.73 1/4, up 5 cents,

JAN 19 Soybeans are at $8.87 1/2, up 5 1/2 cents,

MAR 20 Soybeans are at $9.00 1/2, up 5 1/4 cents,

SEP 19 Soybean Meal is at $295.00, up $1.00,

SEP 19 Soybean Oil is at $28.77, up $0.34

-- provided by Brugler Marketing & Management

Wheat futures are fractionally to 4 cents lower in most contracts on Wednesday. Thursday’s weekly Export Sales report is expected to show 300,000-500,000 MT of wheat booked in the week that ended on August 15. US SRW FOB prices are uncompetitive on the world market, with losses in French wheat adding more pressure. Nearby French milling wheat futures traded at the lowest point since April 2018 this week. Cash wheat prices there are reportedly about $186/MT vs. $245 following the more seriously drought hit crop a year ago.

SEP 19 CBOT Wheat is at $4.59 1/2, down 1/2 cent,

SEP 19 KCBT Wheat is at $3.84 3/4, down 2 cents,

SEP 19 MGEX Wheat is at $5.01 1/4, down 2 3/4 cents

Source: Brugler Marketing & Management.

Live cattle futures are up 12.5 to 77.5 cents on Wednesday. Feeder cattle futures are showing 7.5 to 90 cent gains at midday. The CME Feeder Cattle Index was 93 cents higher on August 19 at $137.26. August FC futures expire on 8/29. Wholesale boxed beef prices were higher on Wednesday morning. Choice boxes were up 46 cents at $242.16, with Select boxes $1.56 higher @ $215.83. 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. Little cash action has taken place this week, with FCE showing asks of $108.25 in the North and $107 in the South on Wednesday, both passed by packers.

AUG 19 Cattle are at $102.375, up $0.575,

OCT 19 Cattle are at $100.125, up $0.125,

DEC 19 Cattle are at $105.125, up $0.300,

AUG 19 Feeder Cattle are at $136.600, up $0.300

SEP 19 Feeder Cattle are at $134.625, up $0.900

OCT 19 Feeder Cattle are at $133.725, up $0.075

-- provided by Brugler Marketing & Management

Lean Hog futures are steady to $1.125 lower in most contracts on Wednesday. The CME Lean Hog Index was down 56 cents at $77.99 on August 19. The USDA pork carcass cutout value was up 72 cents on Wednesday morning at $84.63. The national average base hog value was down $2.18 in the Wednesday AM report at $66.89. By region, IA/MN was down $2.75, with the WCB $4.70 lower. Estimated weekly FI hog slaughter through 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.

OCT 19 Hogs are at $63.850, down $1.125,

DEC 19 Hogs are at $63.200, down $0.975

FEB 19 Hogs are at $69.875, down $0.925

--- provided by Brugler Marketing & Management

Cotton futures are up 29 to 63 points in most contracts at midday. The 7-day QPF shows little precip for most of TX, with some rains expected for the Southeastern US. USDA will release their weekly Export Sales report on Thursday, showing data from the week of 8/15. At an auction of state reserves on Wednesday, China sold 10,455 MT of cotton, totaling 92.67% of the amount offered. The Cotlook A Index was down 90 points on August 20 at 70.50 cents/lb. The weekly AWP is 52.22 cents/lb and will be updated on Thursday.

OCT 19 Cotton is at 59.66, up 49 points,

DEC 19 Cotton is at 59.77, up 63 points

MAR 20 Cotton is at 60.53, up 45 points

MAY 20 Cotton is at 61.45, up 29 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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