AgriCharts Market Commentary

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Corn

Corn futures are 2 1/4 to 2 3/4 cents lower in the nearby contracts at midday. The USDA indicated old crop sales of 62,424 MT, as 671,767 MT of new crop sales were reported for the week of August 10. That was on the higher end of expectations, as total sales were 7.9% larger than last week but are still 39.33% below this time last year. A large portion of 16/17 sales were reported as switched from unknown destinations, as there was a net reduction of 260,800 MT shown for unknown. On Thursday, China sold 123,811 MT of corn from 2014, with an additional 15,000 MT of 2013 corn being sold at an auction of state reserves. That was just 17.14% of the total amount offered.

Sep 17 Corn is at $3.50 1/4, down 2 1/4 cents,

Dec 17 Corn is at $3.63 3/4, down 2 3/4 cents,

Mar 18 Corn is at $3.75 3/4, down 2 1/2 cents

May 18 Corn is at $3.82, down 2 1/2 cents

Soybeans

Soybean futures are mostly 2 1/2 to 3 cents higher on Thursday, with the help of a stronger Export Sales report. Sep soy meal is up 30 cents/ton, with nearby bean oil 26 points in the green. This morning, the USDA announced a private export sale of 165,000 MT of optional origin soybeans to China through their daily reporting system. In Export Sales report, they showed old crop soybean sales of 453,220 MT for the week of August 10, which was up 10 fold from last week’s sales and 154.8% larger than a year ago. New crop sales came in at 899,429 MT, a 40.7% increase over a week ago but 43.7% below last year. The lead buyer for both old and new crop was China, as they purchased a total of 737,479 MT. Total soy meal sales came in at 143,053 MT slightly higher than last week but 54.3% lower than last year. Soy oil sales were reported at 26,926 MT.

Sep 17 Soybeans are at $9.24 1/4, up 2 1/2 cents,

Nov 17 Soybeans are at $9.28, up 2 3/4 cents,

Jan 18 Soybeans are at $9.36, up 2 1/2 cents,

Mar 18 Soybeans are at $9.44 1/2, up 3 cents,

Sep 17 Soybean Meal is at $294.90, up $0.30

Sep 17 Soybean Oil is at $33.11, up $0.26

Wheat

Wheat futures are showing 3 to 5 cent losses at midday in most CBT and KC contracts. MPLS is down 2 1/2 in nearby Sep, with back months 2-3 cents higher. This morning’s USDA Export Sales report indicated 633,565 MT in 17/18 sales, larger than expectations and 29.4% above last year at this time. Thailand was the largest buyer, at 110,100 MT. There have yet to be any 18/19 sales reported, as we are now in week #11 in the current marketing year. A survey of analysts by Bloomberg shows estimated Canadian wheat production for 2017 at 26.4 MMT, compared to the USDA’s 28.35 MMT. Stats Can will report on August 31. Saudi Arabia is seeking 480,000 MT of wheat through the Saudi Grains Organization, for Oct-Dec delivery. This tender will close on Friday.

Sep 17 CBOT Wheat is at $4.14 1/4, down 5 cents,

Sep 17 KCBT Wheat is at $4.15 1/2, down 4 cents,

Sep 17 MGEX Wheat is at $6.71, down 2 1/2 cents

Cattle

Live cattle futures are down $1.875 to $2.20 at the moment, on weaker cash trade. Feeder cattle futures are currently $1.35 to 2.20 lower at midday. The CME feeder cattle index was 83 cents lower than the previous day at $144.49 for August 15. Wholesale beef prices were lower again in the Thursday morning report, with choice down $1.85 at $195.66 and select boxes 47 cents lower at $194.57. The CH/SE spread has now narrowed to only $1.09. Cash trade is starting to develop, as sales of $110 have been reported in the Plains today. That is down $5 since last week. Week to date FI cattle slaughter was estimated at 350,000 head through Wednesday, 3,000 fewer than last week but 11,000 larger than the same week last year. Beef export sales for 2017 during the week of August 10 were reported at 12,860 MT, 22.1% lower than a week ago and 9.5% below the same week last year.

Aug 17 Cattle are at $107.600, down $1.875,

Oct 17 Cattle are at $106.125, down $2.200,

Dec 17 Cattle are at $108.300, down $2.000,

Aug 17 Feeder Cattle are at $140.900, down $1.350

Sep 17 Feeder Cattle are at $140.925, down $2.200

Oct 17 Feeder Cattle are at $140.575, down $2.200

Lean Hogs

Lean hog futures are posting losses of $1.725 to 2.05 on the day. The CME Lean Hog Index for 8/15 was 35 cents lower than the previous day at $84.03. The USDA pork carcass cutout value was 70 cents higher in the Thursday morning report, with a weighted average of $92.25. The butt and picnic were the only primal cuts reported lower. The national base hog carcass was down $1.10 at $75.29 in the AM report. FI hog slaughter was estimated at 1,338,000 week to date through Wednesday, 72,000 head larger than the previous week and up 42,000 from the same week in 2016. The USDA reported 18,348 MT of 2017 export sales for the week of August 10, 3% shy of last week but 20.3% larger than this time last year.

Oct 17 Hogs are at $66.725, down $2.050,

Dec 17 Hogs are at $61.550, down $1.925

Feb 18 Hogs are at $65.975, down $1.725

Cotton

Cotton futures are mostly 14 to 21 points lower at midday, with pressure coming from a higher US dollar, up 139 points. This morning’s Export Sales report showed 186,686 RB of 17/18 all upland cotton sales for the week of August 10. Vietnam was the lead buyer, purchasing 37,400 RB of old crop running bales. There was an additional 66,000 RB reported for 18/19 sales, with Pakistan the only buyer. The Cotlook A index for August 16 was down 50 points from the previous day to 77.70 cents/lb. The USDA cotton AWP will be updated later today, as it is 62.46 cents/lb currently. China sold 27,020 MT of the 29,561 MT offered at Thursday’s auction of state reserves.

Oct 17 Cotton is at 67.35, down 20 points,

Dec 17 Cotton is at 66.68, down 14 points

Mar 18 Cotton is at 66.52, down 20 points

May 18 Cotton is at 67.160, down 21 points


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