Ag Market Commentary

Corn futures are trading 4 to 5 1/4 cents lower at midday. This morning’s EIA report for the week ending August 9, showed the weekly ethanol production at 1.045 million barrels/day, a 5,000 bpd increase. Ethanol stocks ballooned 766,000 barrels to 23.883 million barrels as production exceeded consumption. Each of the five regions saw a jump from last week, with the Midwest and West Coast showing the largest increase. Ahead of the Thursday morning USDA Export Sales report, corn export sales estimates are running 100,000-300,000 metric tons (MT) for 18/19 and 100,000-400,000 MT for 19/20.

SEP 19 Corn is at $3.60 3/4, down 5 1/4 cents,

DEC 19 Corn is at $3.72 1/4, down 4 1/4 cents,

MAR 20 Corn is at $3.85 3/4, down 4 1/4 cents

MAY 20 Corn is at $3.93 3/4, down 5 cents

---provided by Brugler Marketing & Management

Soybean futures are down 10 to 10 1/4 cents in the front months on Wednesday, with expiring Aug down 2 1/2 cents. August soybean meal is unch/ton, with August soy oil steady ahead of expiration. Parts of the WCB are expected to receive significant rainfall over the next 7 days while the ECB sees more limited quantities. A Reuters poll shows estimates of 50,000-300,000 MT for old crop and 100,000-400,000 MT for new crop ahead of Thursday’s USDA Export Sales report. Total soybean meal sales estimates are 175,000 –400,000 MT, with soy oil at 8,000-32,000. The Argentine peso weakened on Monday and again on Tuesday, reaching more than 58 to the dollar before firming into the close. It is weaker again on Wednesday, cheapening their beans vs. US offers.

AUG 19 Soybeans are at $8.69 1/2, down 2 1/2 cents,

SEP 19 Soybeans are at $8.66, down 10 1/4 cents,

NOV 19 Soybeans are at $8.78 3/4, down 10 1/4 cents,

JAN 20 Soybeans are at $8.92, down 10 cents,

AUG 19 Soybean Meal is at $297.80, unch,

AUG 19 Soybean Oil is at $29.17, unch,

---provided by Brugler Marketing & Management

Wheat futures are firm to posting 4 cent gains on Wednesday. Taiwan purchased 94,950 MT of US wheat in their tender on Wednesday for Oct/Nov delivery. Trade estimates ahead of the USDA weekly Export Sales report are 200,000-500,000 MT for wheat, with last week’s total at 487,672 MT. Despite USDA downward revisions to the world carryout, they are still expecting world wheat production to be 768 MMT this year vs. 730 MMT last year. Ukraine was emphasized in some USDA commentary, up 4 MMT from last month.

SEP 19 CBOT Wheat is at $4.74 3/4, up 2 3/4 cents,

SEP 19 KCBT Wheat is at $3.86 3/4, up 3 1/4 cents,

SEP 19 MGEX Wheat is at $5.07 1/2, up 4 1/4 cents

---provided by Brugler Marketing & Management

Live cattle futures are trading 22.5 cents to $1.225 higher in the front months on Wednesday. Feeder cattle futures are posting strong gains, with nearby Aug up the expanded $6.75 limit. The CME Feeder Cattle Index was down $1.02 on August 12 at $140.08. On Wednesday, the Choice boxes were up $5.05 at $231.41, with Select boxes higher $4.51 @ $205.09. The Chc/Sel spread widened to $26.32. USDA estimated the week to date FI cattle slaughter at 231,000 head, down 6,000 head from the previous week and 5,000 head below the same week last year. Wednesday’s FCE saw 3 of the 4 lots sold at $105, $4 above August futures. Bids outside of the FCE are $105 live and $169-170 dressed so far this week in NE. Asks are around $108 and $175.

AUG 19 Cattle are at $100.975, up $0.425,

OCT 19 Cattle are at $99.475, up $0.225,

DEC 19 Cattle are at $105.175, up $1.225,

AUG 19 Feeder Cattle are at $134.475, up $6.750

SEP 19 Feeder Cattle are at $133.325, up $6.125

OCT 19 Feeder Cattle are at $133.500, up $5.950

---provided by Brugler Marketing & Management

Lean Hog futures are $1.45 to $1.85 higher in the front months, with expiring Aug 35 cents higher. The CME Lean Hog Index was down 80 cents at $80.95 on August 12. The USDA pork carcass cutout value was down 23 cents on Wednesday morning at $88.98. The national average base hog value was dropped $2.11 in the Wednesday AM report at $67.92. Estimated FI hog slaughter for week to date was 938,000 head, a 34,000 head increase from the previous week and 1,000 head more the same week a year ago.

AUG 19 Hogs are at $79.350, up $0.350,

OCT 19 Hogs are at $66.425, up $1.850

DEC 19 Hogs are at $64.475, up $1.450

---provided by Brugler Marketing & Management

Cotton futures are mixed at midday, with front months 11 to 32 points higher. USDA will release the weekly Export Sales report on Thursday morning, with a look at the first full week of the 19/20 MY. A Chinese auction of state reserves saw 11,234 MT of cotton sold, which was 95.71% of the amount offered. The Cotlook A was down 75 points on August 13 at 69.60 cents/lb. The weekly AWP is 52.67 cents/lb and will be updated on Thursday.

OCT 19 Cotton is at 59.66, up 32 points,

DEC 19 Cotton is at 59.56, up 15 points

MAR 20 Cotton is at 60.16, up 11 points

MAY 20 Cotton is at 60.97, down 4 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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