AgriCharts Market Commentary

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Corn Market Fractionally Lower

Corn futures are trading fractionally lower this morning. They ended Turnaround Tuesday with most nearby contracts 6 to 7 cents lower. Preliminary open interest suggests net new selling interest, rising 10,807 contracts. Warmer than normal weather is accelerating crop maturity, which is still lagging. Conditions ratings reported on Monday showed IL up 8 points on the Brugler500 index, with IA up 6 and MO 2 points higher. Ratings in NE dropped 1 point, with MN down 6 points and IN 4 points lower. Wire reports suggest China’s 2020 ethanol mandate could be pared back due to decreasing corn stocks, while stockpiles in state reserves have dropped to 56 MMT according to the Ag Ministry. That’s not the same as ending stocks. On the other hand, corn use for hog rations may be down more than 20 MMT per year due to ASF losses there. -- provided by Brugler Marketing & Management

Soybean Market Pauses for RFS News

Soybeans futures are fractionally mixed on Wednesday morning. They had 6 1/4 to 6 1/2 cent losses in the front months on Tuesday, with smaller declines on the back end. Soybean meal was down $1.10/ton, with soy oil 29 points lower. USDA reported another private export sale of 260,000 MT of 19/20 soybeans to China yesterday, the third in as many days and bringing the total to 720,000 MT. NASS reported the percentage of US soybeans dropping leaves by week 37 was the lowest since at least 1985. Condition were down 3 points in IL, 4 points in IN, 2 points lower in NE, and down 8 in MN on the Brugler500 index. They saw gains of 7 points in IA and MO. -- provided by Brugler Marketing & Management

Wheat Markets Mixed, With Export Interest

Wheat futures are 1 to 2 cents higher in the Chicago and KC futures this morning, with MPLS spring wheat fractionally lower. Wheat ended the Turnaround Tuesday session with most contracts 2 to 7 cents in the minus column. Japan’s weekly MOA tender is for 127,893 MT of US, Canadian, and Australian wheat, with 68,270 MT US specific. Egypt’s GASC set a tender for wheat due on Wednesday, with late Oct/early Nov delivery. Tariffs for Morocco’s wheat imports are dropping from 135% to 35% on October 1. Ethiopia is tendering for 400,000 MT of optional origin wheat, with the tender to close on Oct 23. Algeria and Jordan are also in the market. Source: Brugler Marketing & Management

Cattle Market Rebounds Ahead of Friday COF

Live cattle futures posted $1.275 to $1.35 gains in the nearby contracts on Tuesday. Feeder cattle futures were up $1.875 to $3.10 on the day, helped by losses in corn. The CME Feeder Cattle Index was up $1.03 on September 16 at $137.12. Wholesale boxed beef prices were lower on Tuesday afternoon. Choice boxes were down 85 cents at $219.77, with Select boxes $2.66 lower @ $193.91. USDA estimated week to date FI cattle slaughter @ 235,000 head. That is up 3,000 head from the same week last year and a 4,000 jump from the previous week. A total of 1,229 head are consigned on this morning’s FCE auction, better volume than we’ve seen for a while. Analysts on average expect NASS to show September on feed numbers down 0.7% from a year ago at 11.05 million head. The COF report will be released on Friday. -- provided by Brugler Marketing & Management

Lean Hogs Market Lower on Korea ASF News

Lean Hog futures were sharply lower on Tuesday, with December limit down. Preliminary open interest shows long liquidation, down 4,718 contracts but primarily in the October contract. The first case of ASF was discovered in South Korea according to the country’s ag ministry. The risk of higher culling rates adding to the nearby pork supply (and thus limiting imports) pressured Dec to down the limit. The CME Lean Hog Index was down another $1.23 at $58.48 on September 13. The USDA pork carcass cutout value FOB plant was down 45 cents on Tuesday afternoon at $68.21. The national average base hog value was a penny lower at $45.08 on Tuesday. Estimated FI hog slaughter was 975,000 head through Tuesday, 131,000 head above the same week in 2018 and 5,000 head above last week. China is planning to sell 10,000 MT of pork imports (from EU and US) from state reserves on Thursday to ease shortages. -- provided by Brugler Marketing & Management

Cotton Market 32 to 49 Points Lower to Extend Losses

Cotton futures are trading 32 to 49 points lower this morning. They posted 101 to 162 point losses in most contracts on Tuesday. Crude was down 6.39% on Tuesday after Monday’s sharp rally. The Saudis indicated that they would fill in missing crude oil production from reserves. NASS showed conditions in TX up 1 point on the week as of Sunday, with GA down 3 points. AZ was down 10, with MS jumping 17 points. A Chinese auction of state reserves saw all of the 11,349 MT of cotton sold on Tuesday. The Cotlook A Index was up 10 points on September 16 at 73.65 cents/lb. The weekly AWP is 52.28, effective 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