AgriCharts Market Commentary

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Corn

Corn futures settled 4 1/4 to 6 cents higher on Turnaround Tuesday. A slight decline in crop conditions was supportive, and a stronger USD was ignored. The USDA Crop Progress report indicated that 73% of the US corn crop was in the dough stage as of Sunday, with 26% dented vs. the 13% average. All states except NC were above normal pace for denting. Condition ratings were down 1% in the gd/ex categories to 70%, as the Brugler500 Index dropped 2 to 377. The only states to show an increase in ratings were SD and PA, with IA and KS steady. ND conditions deteriorated by 14 points, with NE down 6 and IL 5 lower. Ukraine’s UkragroConsult increased their 2018 corn production estimate by 1.2 MMT to 28.5, moving closer to USDA’s 31 MMT.

Sep 18 Corn closed at $3.62 1/4, up 5 3/4 cents,

Dec 18 Corn closed at $3.76 1/2, up 6 cents,

Mar 19 Corn closed at $3.88, up 6 cents

May 19 Corn closed at $3.94 3/4, up 6 cents

Soybeans

Soybean futures settled 7 1/2 to 11 cents higher. Nearby soy meal was up $8.30/ton, with soy oil 15 points lower. Reports of Brazilian producers plowing up sugar cane fields to plant more soybeans are being ignored. China continues to pay a huge FOB premium for Brazilian beans that are exempt from the Chinese imposed 25% tariff. NASS reported that 84% of the US soybean crop was setting pods as of Sunday vs. the average of 72%. The crop was rated at 66% good/ex, with the Brugler500 Index dropping 1 point from last week to 369. Conditions improved last week in IN, OH and SD among other states, with ND down 20 points in the Brugler500 Index system and both NE and MO dropping 9. Wednesday’s NOPA report is expected to show 161.745 mbu of soybeans were crushed during July, which would be well above last July.

Aug 18 Soybeans closed at $8.64 1/2, up 11 cents,

Sep 18 Soybeans closed at $8.68 1/4, up 11 cents,

Nov 18 Soybeans closed at $8.79 3/4, up 11 cents,

Jan 19 Soybeans closed at $8.91 3/4, up 11 cents,

Aug 18 Soybean Meal closed at $335.00, up $7.20,

Aug 18 Soybean Oil closed at $28.09, down $0.15

Wheat

Wheat futures were anywhere from 1 1/4 to 8 1/4 higher today, with SRW the strongest. Improved crop condition ratings and rapid harvest kept a lid on spring wheat buying in Minneapolis. The winter wheat crop was 96% harvested on 8/12 (96% avg), with the spring wheat crop 35% harvested vs. the normal pace of 27%. Most spring wheat states are ahead of their average, with ID and WA lagging. Spring wheat condition ratings were up 1% to 65% gd/ex, moving the Brugler500 Index up 1 to 382. MN conditions were down 4 points, with ND and MT up 2. Egypt’s GASC bought 420,000 MT of wheat from Russia and Romania at their tender.

Sep 18 CBOT Wheat closed at $5.41 3/4, up 8 1/4 cents,

Sep 18 KCBT Wheat closed at $5.45 3/4, up 5 cents,

Sep 18 MGEX Wheat closed at $5.96 1/4, up 3 1/2 cents

Cattle

Live cattle futures settled 7 to 77 cents higher on Tuesday. Feeder cattle futures were mixed with nearby Aug up 27 cents and back months as much as 57 cents lower. The CME feeder cattle index was down 48 cents from the previous day on 8/13, at $150.64. Wholesale boxed beef values were higher on Tuesday afternoon. Choice boxes were up $1.21 at $209.64, while Select boxes were $1.61 higher at $201.27. USDA FI cattle slaughter was estimated at 237,000 head through Tuesday. That is even with the previous week and 5,000 head above the same week in 2017.

Aug 18 Cattle closed at $107.975, up $0.775,

Oct 18 Cattle closed at $108.725, up $0.575,

Dec 18 Cattle closed at $112.425, up $0.425,

Aug 18 Feeder Cattle closed at $148.925, up $0.275

Sep 18 Feeder Cattle closed at $148.675, up $0.225

Oct 18 Feeder Cattle closed at $148.900, down $0.050

Lean Hogs

Lean hog futures settled 52 cents lower to 12 cents higher, with only August in minus territory. The CME Lean Hog Index was down $1.76 on August 10, to $58.28. The USDA pork carcass cutout value was down $1.27 from the previous day at $69.74 on Tuesday afternoon. The loin, picnic, and belly were all lower. The national base hog carcass value was down $1.04 in the Tuesday PM report, with the weighted average @ $42.69. USDA estimated weekly hog slaughter at 935,000 head through Tuesday. That is up 87,000 head from last week as the plants are back online, and 38,000 head above the same week last year.

Aug 18 Hogs closed at $55.000, down $0.525,

Oct 18 Hogs closed at $51.850, up $0.200

Dec 18 Hogs closed at $48.650, up $0.075

Cotton

Cotton futures went home 6 points lower to 28 points higher. Monday’s Crop Progress report showed 17% of the Texas cotton crop’s bolls were opening as of Sunday, with the average at 12%. Condition ratings in TX fell another 9 points to 248, with GA down 5 at 369. Last week’s first Cotton Ginnings report of the 18/19 MY from the USDA showed 19,600 RB had been ginned as of August 1. Those were all in Texas, and just 18.29% of the August report last year. The Cotlook A index was down a sharp 205 points from the previous day at 95.25 cents/lb on August 13.

Oct 18 Cotton closed at 83.410, up 27 points,

Dec 18 Cotton closed at 83.040, up 28 points

Mar 19 Cotton closed at 83.140, down 6 points


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
Web: http://bruglermarketing.com