AgriCharts Market Commentary

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Corn

Corn futures closed Tuesday with losses of 6 to 8 1/2 cents in most contracts, down from overnight gains as forecasts for rains outweighed lower crop conditions. Monday’s USDA Crop Progress report showed most states behind their averages for Silking and dough stages, with Southeastern states slightly above their averages. Conditions for both CO and PA were 25 points lower than last week, with NE down 9 and IA 6 points lower. Dr. Michael Cordonnier lowered his projected 2017 US corn yield 1.5 bpa from the previous estimate to 163.5 bpa. China will offer 800,000 of 2014 corn on Thursday, with another 3.65 MMT of 2013 and 2014 corn to be offered on Friday.

Sep 17 Corn closed at $3.68 3/4, down 8 1/2 cents,

Dec 17 Corn closed at $3.82 1/4, down 8 1/2 cents,

Mar 18 Corn closed at $3.93 1/2, down 8 1/2 cents

May 18 Corn closed at $3.98 3/4, down 8 1/4 cents

Soybeans

Soybean futures reversed off overnight gains to finish Tuesday trade with 12 to 17 1/2 cent losses. Front month soy meal was down $7.60/ton, with Aug 17 soy oil 11 points lower. According the Crop Progress report, most of the ECB and states north of the Corn Belt are lagging their averages for blooming progress, with some states in those regions behind their average for setting pods. Soybean conditions saw an 8 point drop on the Brugler500 index, as LA, ND, and WI were the only states reported higher, up 4 points over last week. TN and MS were down 13 points, with IL 12 points lower and NE down 9. Dr. Cordonnier also lowered his 2017 US soybean yield expectations 1 bpa to 46.5 bpa.

Aug 17 Soybeans closed at $9.81 1/2, down 16 cents,

Sep 17 Soybeans closed at $9.86, down 16 1/2 cents,

Nov 17 Soybeans closed at $9.92 3/4, down 17 1/4 cents,

Mar 18 Soybeans closed at $10.05 1/2, down 16 3/4 cents,

Aug 17 Soybean Meal closed at $318.30, down $7.60,

Aug 17 Soybean Oil closed at $33.50, down $0.11

Wheat

Wheat futures ended Tuesday with 8 to 14 3/4 cent losses in most CBT and KC contracts, as MPLS was down 20 to 33 cents in most contracts. The 2017 US winter wheat harvest is 84% completed, with 7 of the 18 states listed as 100% done, including TX, OK and KS. The Spring wheat crop is 96% headed, with only ID and WA lagging averages. ND spring wheat ratings were up 2 points, as MT was unchanged. SD conditions were down 4 points, with ID down 11 and WA 8 points lower. Egypt’s GASC purchased 420,000 MT of wheat on Tuesday, with 5 cargos from Russia, 1 from Ukraine, and 1 from Romania.

Sep 17 CBOT Wheat closed at $4.74, down 14 3/4 cents,

Sep 17 KCBT Wheat closed at $4.72 3/4, down 14 3/4 cents,

Sep 17 MGEX Wheat closed at $7.17 1/2, down 33 cents

Cattle

Live cattle futures settled with most contracts 70 cents to $1.625 lower. Feeder cattle futures were down mostly $1.075 to $1.925, with some deferred contracts 30 to 82.5 cents in the red. The CME feeder cattle index was down 31 cents on July 24 to $151.57. Wholesale beef prices were higher in the afternoon report, with choice boxes up 16 cents at $207.62 and select $1.04 higher at $198.93. The Ch/Se spread has narrowed to $8.69. Estimated FI cattle slaughter through Tuesday was 230,000 head, even with last week and 5,000 head larger than same week last year. A total of 2,119 head are on the block for tomorrow’s online FCE auction.

Aug 17 Cattle closed at $113.175, down $0.700,

Oct 17 Cattle closed at $112.775, down $1.625,

Dec 17 Cattle closed at $113.625, down $1.550,

Aug 17 Feeder Cattle closed at $146.525, down $1.925

Sep 17 Feeder Cattle closed at $147.150, down $1.525

Oct 17 Feeder Cattle closed at $146.425, down $1.175

Lean Hogs

Lean hog futures were mostly steady in the back months to $1.075 higher in the Aug contract. The CME Lean Hog Index for 7/21 was 54 cents lower than the previous day at $91.13. The USDA pork carcass cutout value was 19 cents higher in the Tuesday afternoon report, with a weighted average of $102.40. That ham and the belly were the only cuts lower. The national base hog carcass price was 31 cents lower with a weighted average of $82.08. FI hog slaughter was estimated at 857,000 head through Tuesday, 1,000 head fewer than the previous week but 2,000 over the same week in 2016.

Aug 17 Hogs closed at $81.450, up $1.075,

Oct 17 Hogs closed at $66.850, up $0.400

Dec 17 Hogs closed at $61.550, up $0.375

Cotton

Cotton futures followed Monday’s Crop Progress report with most contracts 44 to 59 points in the greed. The only states to show improvement in cotton condition ratings were CA and MO, as TX was down 10, with NC 25 points lower. The Cotlook A index for July 24 was 40 points lower at 84.65 cents/lb. On Tuesday, China sold 17,200 MT of the total 29,500 MT offered at an auction of state reserves. There are reports that an additional 1.9 million bales could be offered at China’s auctions of state reserves, extending them through September. This could expand China demand for US cotton, as the country’s mills use US cotton to blend with the lower quality cotton offered at the auctions.

Oct 17 Cotton closed at 69.550, up 55 points,

Dec 17 Cotton closed at 68.830, up 54 points

May 18 Cotton closed at 69.040, up 49 points


Market Commentary provided by:

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