AgriCharts Market Commentary

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Corn

Corn futures are 4 to 4 3/4 cents lower in the nearby contracts at midday. This morning’s Export Inspections report indicated 691,442 MT of corn was exported during the week of August 17. That is 9.18% lower than last week and 45.97% behind the same week last year (when Brazil was out of the market). Expectations ahead of the Crop Progress report indicate the USDA will show corn conditions 1% to 2% higher, vs. last week’s 62% good/excellent. Friday’s Commitment of Traders report indicated managed money backing off their net long position by another 27,271 contracts in corn futures and options trading. They had net position of +39,802 contracts as of Tuesday August 15. Taiwan is seeking 130,000 MT of corn with US listed at an accepted origin for Oct-Nov shipment. The tender will close on Wednesday.

Sep 17 Corn is at $3.47 1/4, down 4 3/4 cents,

Dec 17 Corn is at $3.61 1/4, down 4 1/2 cents,

Mar 18 Corn is at $3.73 1/2, down 4 1/4 cents

May 18 Corn is at $3.80, down 4 cents

Soybeans

Soybean futures are trading a penny to 2 3/4 cents higher in the front months on Monday. Sep soy meal is down $1.80/ton, with nearby bean oil 36 points higher. The USDA reported 665,283 MT of soybeans exported for the week of August 17, up 12.64% wk/wk but down 29.75% yr/yr. They also announced private export sales of 198,000 MT of soybeans to China and 463,000 MT to unknown destinations for the 17/18 marketing year. Soybean condition ratings are estimated at 1% to 2% better than last week’s 59% g/e. The CFTC showed spec traders switching back to a net short position of 14,399 contracts in soybean futures and options as of Tuesday. That is a net weekly change of 27,312 contracts.

Sep 17 Soybeans are at $9.34 3/4, down 2 3/4 cents,

Nov 17 Soybeans are at $9.36 1/4, down 1 1/2 cents,

Jan 18 Soybeans are at $9.44 1/4, down 1 1/2 cents,

Mar 18 Soybeans are at $9.52 3/4, down 1 cent,

Sep 17 Soybean Meal is at $295.40, down $1.80

Sep 17 Soybean Oil is at $33.97, up $0.36

Wheat

Wheat futures are mostly 5 to 8 cents lower in the CBT and KC contracts, with MPLS 10 to 13 cents in the red. Wheat exports for the week of August 17 totaled 583,126 MT, 13.98% larger than last week and 8.49% above this time last year. As of last Tuesday, spec funds were reporting a net position of -34,236 contracts in Chicago wheat futures and options, 20,135 more bearish than the previous week. In KC wheat futures and options, they had reduced their net long position by 14,326 contracts in a week to +34,609 contracts. Taiwan purchased 98,850 MT of US wheat last week, with Oct shipment. The Saudi Grains Organization purchased 490,000 MT of wheat over the weekend, with origins from the EU, North and South America, and Australia.

Sep 17 CBOT Wheat is at $4.09, down 7 cents,

Sep 17 KCBT Wheat is at $4.06, down 8 1/2 cents,

Sep 17 MGEX Wheat is at $6.55 3/4, down 13 cents

Cattle

Live cattle futures are mixed at midday, with nearby Aug down 57.5 cents. Feeder cattle futures are 70 cents to $1.025 lower. The CME feeder cattle index was 36 cents higher than the previous day at $144.80 for August 17. Wholesale beef prices were lower again in the Monday morning report, with choice down 8 cents at $193.51 and select boxes 6 cents lower at $192.44. The CH/SE spread has now narrowed to $1.07. Cash sales of $110-$110.50 were reported across most regions last week, down $5 from the previous week. Weekly FI cattle slaughter was estimated at 634,000 head, 7,000 fewer than the previous week but 32,000 larger than the same week last year. The Commitments of Traders report showed managed money a little more aggressive in getting out of their net long position in live cattle futures and options this week. They lowered that position by 13,593 contracts to +81,175 as of Tuesday.

Aug 17 Cattle are at $105.800, down $0.575,

Oct 17 Cattle are at $105.975, up $0.075,

Dec 17 Cattle are at $108.025, up $0.175,

Aug 17 Feeder Cattle are at $139.775, down $0.725

Sep 17 Feeder Cattle are at $139.000, down $1.025

Oct 17 Feeder Cattle are at $139.225, down $0.700

Lean Hogs

Lean hog futures are posting losses of $1.40 to $1.45 in the nearby contracts at midday. The CME Lean Hog Index for 8/17 was 51 cents lower than the previous day at $83.19. The USDA pork carcass cutout value was 62 cents lower in the Monday morning report, with a weighted average of $90.14. The loin butt and ham were all slightly lower. The national base hog carcass was down 88 cents at $72.48 in the AM report. Weekly FI hog slaughter was estimated at 2,332,000, 60,000 head larger than the previous week and up 37,000 from the same week in 2016 if the Saturday estimates were accurate. Spec traders added another 5,663 contracts to their net long position in lean hog futures and options as of Tuesday, to +81,149 contracts. That was just in time for the sell off.

Oct 17 Hogs are at $64.700, down $1.425,

Dec 17 Hogs are at $59.875, down $1.450

Feb 18 Hogs are at $64.600, down $1.400

Cotton

Cotton futures are trading 4 to 21 points higher at midday. The US dollar is 331 points lower at the moment. The USDA cotton AWP for this week is 59.70, down from 62.46 cents/lb in the week just ended. The Cotlook A index for August 1 was unchanged from the previous day at 77.40 cents/lb. Friday afternoon’s CFTC report indicated spec traders trimming their net long position in cotton futures and options trading by 4,390 contracts to +29,596 contracts as of Tuesday. On Monday, China sold 28,000 MT of cotton at an auction of state reserves, as 29,600 MT was offered. Last week, they sold 70.77% of the 148,237 MT offered.

Oct 17 Cotton is at 68, up 21 points,

Dec 17 Cotton is at 67.45, up 17 points

Mar 18 Cotton is at 67.14, up 8 points

May 18 Cotton is at 67.750, up 4 points


Market Commentary provided by:

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