Ag Market Commentary

Corn futures finished up 8 3/4 to 10 1/4 cents to end the week. Prices were technically oversold following the early week melt down and there is some bottom picking activity being attempted today. Friday afternoon’s Commitment of Traders report indicated spec funds holding a net long position of 44, 513 contracts in corn futures and options, a reduction of 45% from last week. Thursday’s USDA Export Sales report showed continued softness in export sales. New crop sales totaled 307,591 MT, up 56% from the previous week but down 71% from the same week last year. Total export commitments for old crop corn are now 17% behind a year ago. South Korea purchased 63,000 MT in an international tender for corn to be delivered in January 2020. Areas of dryness and moderate drought are expanding in Indiana, Illinois and Iowa.

SEP 19 Corn closed at $3.71, up 10 1/4 cents,

DEC 19 Corn closed at $3.80 3/4, up 9 3/4 cents,

MAR 20 Corn closed at $3.92 3/4, up 9 1/4 cents

MAY 20 Corn closed at $4.00, up 8 3/4 cents

--- provided by Brugler Marketing & Management

Soybeans were stronger at the close, 9 to 9 1/4 higher. September soybean meal was up $3.10/ton, with soy oil 6 points higher. Money Managers reduced their CFTC net short positions this week to 66,450, a decline of 9%. This morning to the U.S. Department of Agriculture said private exporters reported export sales of 296,500 metric tons of soybeans for delivery to unknown destinations during the 2019/2020 marketing year. Weekly new Crop sales on Thursday showed strong increases to 817,359 MT, 1.5 times larger than last week and 43% above the same week last year. Basis is sloppy, from -.80 to -1.09 across Iowa, with basis weaker farther West and stronger to the East.

SEP 19 Soybeans closed at $8.67 1/4, up 9 1/4 cents,

NOV 19 Soybeans closed at $8.79 3/4, up 9 cents,

JAN 19 Soybeans closed at $8.93 1/2, up 9 1/4 cents,

MAR 20 Soybeans closed at $9.06 1/2, up 9 1/2 cents,

SEP 19 Soybean Meal closed at $294.90, up $3.10,

SEP 19 Soybean Oil closed at $29.13, up $0.06

-- provided by Brugler Marketing & Management

Wheat futures contracts close the week on a positive with Minneapolis wheat 3 1/2 cents higher, CBOT wheat up 1 3/4 cents and Kansas City HRW leading the group with a 4 1/2 cents gain. The Commitment of Traders report showed specs further reducing their Chicago net long positions to 4,088 contracts, down 35% for the week ending August 13. In KC wheat they boosted their net short position to 33,272 contracts as of Tuesday. They also added to a record net short position in MPLS wheat on that date of -18903 contracts. Ukraine completed its wheat harvest with an estimated production of 38.5 MMT.

SEP 19 CBOT Wheat closed at $4.70 3/4, up 1 3/4 cents,

SEP 19 KCBT Wheat closed at $3.94 1/4, up 4 1/2 cents,

SEP 19 MGEX Wheat closed at $5.06 1/4, up 3 1/2 cents

--- provided by Brugler Marketing & Management

Cattle Weaker on Friday

Live cattle futures lost ground in afternoon trading, finishing down $.275 to $.750 on the day. Feeder cattle futures declined $.90 to $1.20. The CME Feeder Cattle Index $1.55 cents on August 15 at $137.15 . Wholesale boxed beef prices continued their sharp rise on Labor Day wholesale buying and tight supplies. Choice boxes finished higher again Friday by $ 2.57 to $238.69, with Select boxes $2.59 higher @ $213.26. The USDA estimated the weekly FI cattle slaughter at 651,000 head, 9,000 head more than the previous week, and 8000 head below the same week last year. There were a few live purchases reported in the North, with prices reported at $105-106 live or $172-178 in the meat. Money managers in Live Cattle futures and options trimmed their CFTC net long position by 4355 contracts as of Tuesday at 18, 830 contracts.

AUG 19 Cattle closed at $99.925, down $0.275,

OCT 19 Cattle closed at $98.050, down $0.475,

DEC 19 Cattle closed at $103.525, down $0.750,

AUG 19 Feeder Cattle closed at $134.575, down $1.200

SEP 19 Feeder Cattle closed at $132.375, down $0.925

OCT 19 Feeder Cattle closed at $132.850, down $0.900

-- provided by Brugler Marketing & Management

Hogs Decline Returns on Friday

Lean Hog futures lost $2.225 to $3 today. The CME Lean Hog Index was down $1.97 at $77.89 on August 14. USDA showed pork export sales of 20,393 MT in the week of August 8, with 10,211 MT sold to China. Shipments were 26,413 MT, as 6,835 MT was headed to China. China’s hog herd in July was down 32% from July 2018 according to official sources. The USDA pork carcass cutout value was down $1.97 on Friday’s close to $86.26. The national average base hog value was .49 cents lower in the Friday morning report at $69.65. CFTC data showed spec funds in lean hog futures and options trimmed their long position by 6928 contracts to 34, 050 as of Tuesday. Estimated week to date FI hog slaughter is 2.457 million head, a 143,000 head increase from the previous week and 38,000 head more the same week a year ago.

OCT 19 Hogs closed at $62.000, down $3.000,

DEC 19 Hogs closed at $60.775, down $2.975

FEB 19 Hogs closed at $68.025, down $2.225

--- provided by Brugler Marketing & Management

Cotton futures prices were higher on Friday, rising 29 to 50 points. Commitment of Traders data for Tuesday showed spec traders in cotton futures and options reduced their net short position to 44,642 contracts. The Cotlook A Index was unchanged on August 15 at 70.90 cents/lb. The weekly AWP is 52.22 cents/lb, a slight decline from last week but still above loan rate. The “costs to market” adjustment for the 2019/20 crop year is 15.20 cents/lb and is included in the calculation of the AWP. It became effective August 9, 2019. Dry conditions continue in Texas, with very limited precipitation seen in the next 5 days.

OCT 19 Cotton closed at 59.95, up 29 points,

DEC 19 Cotton closed at 60.12, up 50 points

MAR 20 Cotton closed at 60.7, up 46 points

MAY 20 Cotton closed at 61.6, up 44 points

--- provided by Brugler Marketing & Management

Market Commentary provided by:

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

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