Ag Market Commentary

Corn futures ended the Wednesday session with most contracts 1 1/2 to 3 cents higher. The weekly EIA report indicated ethanol production (week ending August 2) averaged 1.04 million barrels per day. That was a jump of 9,000 bpd but well below the same week in 2018. Stocks of ethanol showed the largest 1 week crop on record of 1.351 million barrels to 23.117 million barrels as of that date. Ahead of Thursday morning’s Export Sales report analysts expect a range of 100,000-300,000 MT for old crop corn. New crop bookings are seen at 200,000-600,000 MT. A Reuters poll shows an average analyst estimate of 2.392 bbu for old crop US corn carryout, up 52 mbu from July. New crop ending stocks are seen at 1.62 bbu, which would be a drop of 390 mbu from USDA’s previous number.

SEP 19 Corn closed at $4.06 1/2, up 2 1/2 cents,

DEC 19 Corn closed at $4.14, up 1 1/2 cents,

MAR 20 Corn closed at $4.23 3/4, up 1 3/4 cents

MAY 20 Corn closed at $4.28 3/4, up 2 1/4 cents

--provided by Brugler Marketing & Management

Soybean futures closes a penny higher in several front months on Wednesday. August soybean meal was down $2.10/ton, with soy oil up 48 points. The USDA reported a private export sale of 165,000 MT of 19/20 soybeans to unknown destinations. The trade range of estimates for old crop soybean weekly export sales is 0-300,000 MT, with 100,000-600,000 MT seen for new crop. Soy meal sales are seen at 75,000-325,000 MT, with 5,000-30,000 MT anticipated for soy oil. A Reuters survey shows an average trade guess of 1.065 bbu for old crop soybean carryout ahead of next Monday’s WASDE report, a 15 mbu bump from July. New crop is seen at 821 mbu, which is 26 mbu larger than the July USDA projection.

AUG 19 Soybeans closed at $8.48 3/4, up 1 cent,

SEP 19 Soybeans closed at $8.54, up 1 cent,

NOV 19 Soybeans closed at $8.66 3/4, up 1 cent,

JAN 20 Soybeans closed at $8.80 1/4, up 1 cent,

AUG 19 Soybean Meal closed at $293.00, down $2.10,

AUG 19 Soybean Oil closed at $27.96, up $0.48

--provided by Brugler Marketing & Management

Wheat futures settled with most nearby HRW and HRS contracts within a penny of unch, as CBT SRW was up 3 to 4 1/4 cents in the front months on Wednesday. Prior to Thursday’s USDA Export Sales report, analysts expect to see a range of 250,000-500,000 MT for all wheat bookings during the week that ended on August 1. A Reuters survey shows 999 mbu expected for 19/20 US ending stocks ahead of Monday’s WASDE report, nearly UNCH from the 1 bbu in July. Japan is seeking 114,783 MT of wheat in their weekly MOA tender due on Thursday, with 54,625 MT US specific.

SEP 19 CBOT Wheat closed at $4.88 1/4, up 4 1/4 cents,

SEP 19 KCBT Wheat closed at $4.17 3/4, down 1/4 cent,

SEP 19 MGEX Wheat closed at $5.21, down 1 cent

--provided by Brugler Marketing & Management

Live cattle futures were 22 to 65 cents higher on Wednesday. Feeder cattle futures were mixed, with front months 7.5 to 42.5 cents lower. The CME feeder cattle index was down 4 cents @ $141.61 on August 6. Wholesale boxed beef prices were higher on Wednesday afternoon. Choice boxes were up 71 cents at $216.49, with Select boxes 6 cents higher @ $192.71. USDA estimated week to date FI cattle slaughter at 355,000 head through Wednesday, 1,000 head below the previous week and even with the same week last year. Bids of $109 in the South and $181-185 in the North were reported on Wednesday. Asks are around $113 and $185 respectively.

AUG 19 Cattle closed at $107.600, up $0.475,

OCT 19 Cattle closed at $106.450, up $0.225,

DEC 19 Cattle closed at $111.175, up $0.275,

AUG 19 Feeder Cattle closed at $139.550, down $0.425

SEP 19 Feeder Cattle closed at $139.375, down $0.075

OCT 19 Feeder Cattle closed at $138.900, up $0.250

--provided by Brugler Marketing & Management

Lean Hog futures finished the Wednesday session with the front months 60 cents to $2.40 higher. Technical buying was a feature. The cash market is still catching up with the preceding sell off in the futures. The CME Lean Hog Index was down 49 cents from the previous day on August 5. The USDA pork carcass cutout value was down 33 cents on Wednesday afternoon at $88.40. The national average base hog value was down another $1.51 in the Wednesday PM report at $73.61. Estimated FI hog slaughter WTD through Wednesday was 1.376 million head, down 16,000 head from the previous week and 63,000 head above the same week a year ago.

AUG 19 Hogs closed at $77.725, up $0.600,

OCT 19 Hogs closed at $66.850, up $2.250

DEC 19 Hogs closed at $63.425, up $2.400

--provided by Brugler Marketing & Management

Cotton futures ended Wednesday’s trade session mixed, with front months 12 to 20 points higher and most deferred contracts lower. The 7-day QPF shows little to no moisture for much of TX over the next week, with parts of the Southeast showing 1-2 inches. Weekly USDA Export Sales data will be released on Thursday morning, showing numbers from the final week of the 18/19 MY for cotton. The Cotlook A was down 90 points on August 6 at 70 cents/lb. The weekly AWP is 56.96 cents/lb, good through Thursday.

OCT 19 Cotton closed at 58.39, up 12 points,

DEC 19 Cotton closed at 58.92, up 20 points

MAR 20 Cotton closed at 59.89, down 8 points

MAY 20 Cotton closed at 61.11, down 27 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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