AgriCharts Market Commentary

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Corn

Corn futures are mostly down 1 1/2 to 2 cents in the nearby contracts at midday. Drier weather across much of the Corn Belt is helping to advance harvest progress, and putting a little pressure on the market. The weekly EIA ethanol report showed production ramping up over last week at 1.019 million barrels per day for the week of October 13. That was a 52,000 bpd jump over the previous week. Stocks of ethanol dropped 43,000 barrels during that week to 21.48 million barrels. Analysts are expecting to see 0.8-1.1 MMT in 2017/18 corn export sales in Thursday morning’s USDA report. China sold 10,497 MT of the 130,503 MT offered at Thursday’s auction from state reserves.

Dec 17 Corn is at $3.48, down 2 cents,

Mar 18 Corn is at $3.62, down 1 3/4 cents,

May 18 Corn is at $3.70 1/4, down 1 3/4 cents

Jul 18 Corn is at $3.77, down 1 1/2 cents

Soybeans

Soybean futures are trading fractionally lower in most front months on Wednesday. December meal is down 50/ton, with nearby bean oil down 17 cents. A Reuters survey of traders is showing expected 17/18 soybean sales for the week of October 12 at 1.3-1.7 MMT, just shy of last week’s sales. Soy meal sales are projected at 100,000-250,000 MT for 17/18, with soy oil estimated at 5,000-22,000 MT. The 6-10 day forecasts look a little wetter for dry northern Brazilian planting areas. China’s National Grains and Oil Info Center sees soybean oil stocks at 1.6 MMT, well above last year’s 1.3 MMT for the same time.

Nov 17 Soybeans are at $9.84 1/2, down 1/4 cent,

Jan 18 Soybeans are at $9.95, down 1/4 cent,

Mar 18 Soybeans are at $10.04 1/2, down 1/2 cent,

May 18 Soybeans are at $10.13 1/4, down 3/4 cent,

Dec 17 Soybean Meal is at $322.10, up $0.50

Dec 17 Soybean Oil is at $33.42, down $0.17

Wheat

Wheat futures are showing 4 to 6 cent losses in most CBT and KC contracts at midday. MPLS is down 2 to 3 cents in the nearby contracts, with a few back months in the green. All wheat export sales for the week ending October 12 are expected to pick back up over last week’s sales of 174,961 MT. Analysts are seeing sales of 250,000-450,000 MT, as the USDA has already reported a private sale of 104,202 MT during that week. A US Wheat office that encourages the purchase of US wheat exports in Egypt is shutting their doors in Cairo in December. This comes from the lack of US sales to the country and the persistent freight advantage for Black Sea offerings.

Dec 17 CBOT Wheat is at $4.29 1/4, down 5 1/2 cents,

Dec 17 KCBT Wheat is at $4.27 1/2, down 5 3/4 cents,

Dec 17 MGEX Wheat is at $6.08 3/4, down 2 1/4 cents

Cattle

Live cattle futures are currently 35 to 50 cents higher at midday. Feeder cattle futures are seeing mixed trade, as nearby Oct is up 30 cents. The CME feeder cattle index was 60 cents lower at $155.06 on October 16.Wholesale beef prices were mixed in this morning’s report. Choice was up 23 cents at $197.89, with select boxes 48 cents lower at $189.37. Weekly FI cattle slaughter through Tuesday is estimated at 227,000 head, about 6,000 fewer than the previous week and 2,000 head lower than the same week last year. This morning’s FCE showed sales of just 230 of the 919 head, at an average price of $109. There were 2 additional lots showing offers at $109 passed by feedlots. Cash bids at noon are running around $110 in most regions. Ahead of Friday afternoon’s Cattle on Feed report, a Reuters survey of analysts is showing September placements 8% larger yr/yr, with a range of 3.4% to 16%. Marketing’s for September are seen at 2.6% larger than last year.

Oct 17 Cattle are at $111.575, up $0.400,

Dec 17 Cattle are at $116.475, up $0.500,

Feb 18 Cattle are at $120.500, up $0.350,

Oct 17 Feeder Cattle are at $152.450, up $0.300

Nov 17 Feeder Cattle are at $151.850, down $0.575

Jan 18 Feeder Cattle are at $149.800, down $0.600

Lean Hogs

Lean hog futures are 17.5 to 87.5 cents higher at midday, with some deferred contracts in the red. The CME Lean Hog Index for 10/16 was 76 cents higher than the previous day at $61. The national base hog was up 48 cents at 60.83, as prices in the IA/MN region were up 55 cents with the WCB 71 cents higher this morning. The USDA pork carcass cutout value was 84 cents lower at $73.97 on in Wednesday morning’s report. Estimated week to date FI hog slaughter was 25,000 head fewer than last week at 901,000 head through Tuesday, but still 16,000 larger than the same week in 2016.

Dec 17 Hogs are at $63.050, up $0.875,

Feb 18 Hogs are at $67.750, up $0.600

Apr 18 Hogs are at $71.475, up $0.175

Cotton

Cotton futures are 5 to 15 points lower on Wednesday, as dry weather is allowing for harvest progress to continue. The Adjusted World Price (AWP) is currently at 60.44 cents/lb through Thursday, and will be updated tomorrow afternoon. The Cotlook A index for the 17th of October was 80 points lower at 77.70 cents/lb. The Seam reported cash sales of 656 bales at an average price of 65.94 cents/lb.This week’s USDA Export Sales report will be back at its normal time on Thursday, at 7:30 AM CDT.

Dec 17 Cotton is at 67.62, down 15 points,

Mar 18 Cotton is at 67.36, down 12 points

May 18 Cotton is at 68.23, down 9 points

Jul 18 Cotton is at 68.850, down 5 points


Market Commentary provided by:

Brugler Marketing & Management LLC
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