AgriCharts Market Commentary

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Corn Market Commentary

Corn futures are currently fractionally lower after seeing 3 cent losses in most nearby contracts on Turnaround Tuesday profit taking. A drier pattern this week should allow producers in the Corn Belt to make better harvest progress. Monday’s Crop Progress indicated most WCB states lagging average harvest pace and only moving 2-3% on the week, with the ECB states now well ahead of normal completion. Condition ratings held up better than expected for the US as a whole. Condition ratings were down 1 in IA and up the same in IN, while MN lost 3 points with the Dakotas both lower and NE up 2.

--provided by Brugler Marketing & Management (402) 289-2330

Soybeans Market Commentary

Soybean futures are trading 1 to 2 cents lower this morning. They gave back some of Monday’s gains on Turnaround Tuesday, down 6 to 7 cents. Nearby soy meal was down $4.70/ton, with soy oil 10 points lower. Forecasts for the next week are dry for most of the Corn Belt, helping to get things dried out and allowing harvest to progress. NASS reported harvest as of Sunday was well behind normal with WCB states making very little progress over the past week. Harvest progress in IA and MN is lagging by 31% with NE down 16% and the Dakotas well below normal, while IL is 5% faster than normal and IN up 2%. Condition ratings saw significant declines in IA (-10%), MO (-11%), ND (10%), and OH (-9%) last week, with NE down 5% and MN 3 points lower.

--provided by Brugler Marketing & Management (402) 289-2330

Wheat Market Commentary

Wheat futures are mostly 5 to 6 cents lower this morning in the KC and CHI contracts. MPLS spring wheat is trading on both sides of UNCH. The US dollar index is sharply higher this morning. The three markets ended the Tuesday session with most contracts steady to 4 1/4 cents in the red. NASS reported that KS is now lagging normal pace at 62% planted, most other HRW states are also behind average. Emergence in those same states, however, is ahead of normal. Dryness across most of KS, northern OK, and further north should allow the planting pace to pick up this week. Japan is seeking 127,688 MT of wheat from the US (59,640 MT), Canada, and Australia in their weekly MOA tender, with results expected on Thursday.

Cattle Market Commentary

Live cattle futures ended Tuesday with mixed trade, as nearby Oct was down 72.5 cents and Feb was up 12.5 cents. Feeder cattle futures were mostly lower, with front month Oct down $1.075. The CME feeder cattle index was down 90 cents on October 15 at $155.36. Wholesale boxed beef prices were mixed on Tuesday afternoon. Choice boxes were down 19 cents @ $204.61, with Select up 66 cents to $192.55. FI cattle slaughter through Tuesday was estimated at 234,000 head by USDA. That is 2,000 above the previous week and 5,000 head larger than last year. The FCE auction this morning will have 1,103 head for sale. The sale has been plagued by small show lists, so this is an improvement. Ahead of Friday’s Cattle on Feed report, analysts are expecting to see September placements just 0.1% larger than last year at 2.152 million head. Marketings in that month are seen down 3% from year ago at around 1.73 million head.

Lean Hogs Market Commentary

Lean hog futures settled Tuesday with gains of 12.5 to 65 cents. The CME Lean Hog Index was down 24 cents from the previous day @ $68.75 on October 12. The USDA pork carcass cutout value was 63 cents lower in the Tuesday afternoon report at $80.87. The national base hog carcass value was 40 cents lower at a weighted average of $59.86 on Tuesday afternoon. There seems to be a bit of a trend in those numbers. FI hog slaughter was estimated at 936,000 head through Tuesday. That was up 12,000 head from last week and 38,000 head more than the same week last year.

Cotton Market Commentary

Cotton futures are trading 6 to 10 points lower this morning. They were steady to 39 points lower in the front months on Tuesday. With estimated ending stocks pushing 5 million bales, the market can be complacent at times about crop losses. Texas has 30% harvested, with GA @ 20%. Condition ratings dropped a sharp 22 points to 299 on the Brugler500 Index. That is the worst rating for this week since 2011. Georgia ratings fell 126 Index points to 234 due to Hurricane Michael. Conditions in TX also fell by 5 points, with AL down 39 points. The Cotlook A index was up 150 points from the previous day at 87.65 cents/lb on October 15. The USDA weekly AWP is 67.73 cents/lb, and effective through this Thursday.

--provided by Brugler Marketing & Management. Call (402) 289-2330 with questions or news tips.

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353