AgriCharts Market Commentary

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Corn Posts Losses on Turnaround Tuesday

Corn futures ended Turnaround Tuesday with most nearby contracts 6 to 7 cents lower. There are very few threats of frost in the forecasts to the first of Oct, as the 8-14 day outlook shows above normal temps for most of the US outside the PNW. This will help to push the delayed crops along into maturity. Conditions ratings reported on Monday showed IL up 8 points on the Brugler500 index, with IA up 6and 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.

DEC 19 Corn closed at $3.68, down 6 cents,

MAR 19 Corn closed at $3.80, down 6 cents,

MAY 20 Corn closed at $3.88 1/4, down 6 1/4 cents

JUL 20 Corn closed at $3.95, down 6 1/4 cents

-- provided by Brugler Marketing & Management

Soybeans Close Lower on Tuesday

Soybeans futures saw 6 1/4 to 6 1/2 cent losses in the front months on Tuesday. 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 this morning, the third in as many days and bringing the total to 720,000 MT. USSEC indicated that China may be in the market for 1 to 3 MMT, not just the 600,000 MT rumored last Thursday. That said, they were buying ~30 MMT or more per year before the trade war. 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.

NOV 19 Soybeans closed at $8.93 3/4, down 6 1/4 cents,

JAN 19 Soybeans closed at $9.07 1/4, down 6 1/2 cents,

MAR 20 Soybeans closed at $9.19 1/2, down 6 1/4 cents,

MAY 20 Soybeans closed at $9.30 1/4, down 6 1/4 cents,

OCT 19 Soybean Meal closed at $294.10, down $1.10,

OCT 19 Soybean Oil closed at $29.85, down $0.29

-- provided by Brugler Marketing & Management

Wheat Post Modest Turnaround Tuesday Drop

Wheat futures ended the Turnaround Tuesday session with most contracts 2 to 7 cents in the red. 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.

DEC 19 CBOT Wheat closed at $4.84 1/4, down 4 1/2 cents,

DEC 19 KCBT Wheat closed at $4.02 1/4, down 6 3/4 cents,

DEC 19 MGEX Wheat closed at $5.06 1/2, down 2 1/2 cents

Source: Brugler Marketing & Management

Cattle Close with Triple Digit Gains

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 this week’s 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 week’s FCE auction set for Wednesday morning, 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.

OCT 19 Cattle closed at $99.350, up $1.35,

DEC 19 Cattle closed at $105.300, up $1.275,

FEB 20 Cattle closed at $111.775, up $1.325,

SEP 19 Feeder Cattle closed at $139.175, up $2.625,

OCT 19 Feeder Cattle closed at $137.300, up $3.10,

NOV 19 Feeder Cattle closed at $135.050, up $1.875,

-- provided by Brugler Marketing & Management

Hogs Sharply Lower on Tuesday

Lean Hog futures were sharply lower on Tuesday. The first case of ASF was discovered in South Korea according to the country’s ag ministry. Higher culling rates adding to the nearby pork supply 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.

OCT 19 Hogs closed at $62.100, down $2.625,

DEC 19 Hogs closed at $67.675, down $3.00,

FEB 20 Hogs closed at $73.550, down $2.30,

-- provided by Brugler Marketing & Management

Cotton Posts Triple Digit Losses on Tuesday

Cotton futures posted 101 to 162 point losses in most contracts on Tuesday. Crude was back down 6.39% on Tuesday after Monday’s sharp rally. 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.

OCT 19 Cotton closed at 59.97, down 162 points,

DEC 19 Cotton closed at 61.3, down 129 points

MAR 20 Cotton closed at 61.78, down 118 points

MAY 20 Cotton closed at 62.82, down 101 points

-- provided by Brugler Marketing & Management

Market Commentary provided by:

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