AgriCharts Market Commentary

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Corn

October 23, 2017

Corn futures ended the Monday session 4 to 6 3/4 cents higher, as specs were covering shorts and wheat was rallying. Stronger exports were also a feature. The USDA reported export shipments of 24.175 mbu for the week of October 19. That was nearly twice as much as the previous week and 11.39% larger than the same week last year. This afternoon’s USDA Crop Progress report indicated the US corn harvest was 38% complete by Sunday, still well behind the average pace of 59%. Condition ratings rose to 368 on the Brugler500 index, up 2 points from the previous week.

Dec 17 Corn closed at $3.51 1/4, up 6 3/4 cents,

Mar 18 Corn closed at $3.65 1/4, up 6 3/4 cents,

May 18 Corn closed at $3.74, up 6 3/4 cents

Jul 18 Corn closed at $3.81, up 6 1/4 cents

Soybeans

October 23, 2017

Soybean futures settled Monday with gains of 1 to 4 1/4 cents. December meal was down $1.20/ton, with nearby bean oil 47 points higher. This morning’s USDA Export Inspections report indicated shipments at a marketing year high of 94.153 mbu. That is an increase of 43.48% over the previous week but lagging last year by 9.24%. The USDA showed the US soybean harvest catching up at 70% complete, compared to the 5-year average of 73%. Ag Rural estimates that Brazil’s 2017/18 soybean crop is 20% planted vs. the average of 19%. The southern states have had more rain and are ahead of normal planting progress, but Mato Grosso still trails.

Nov 17 Soybeans closed at $9.80 3/4, up 2 cents,

Jan 18 Soybeans closed at $9.91, up 1 3/4 cents,

Mar 18 Soybeans closed at $10.01, up 1 3/4 cents,

Jul 18 Soybeans closed at $10.18 3/4, up 2 cents,

Dec 17 Soybean Meal closed at $315.90, down $1.20,

Dec 17 Soybean Oil closed at $34.63, up $0.47

Wheat

October 23, 2017

Wheat futures showed strong gains of 8 to 10 3/4 cents in most CBT and KC contracts on Monday, as MGE was 3 to 4 cents higher. All wheat exports during the week of October 19 fell to just 6.237 mbu. That was slightly better than half of the previous week’s inspections and 36.25% lower than the same week last year. The USDA Crop Progress report showed the US winter wheat crop at 75% planted vs. the average of 80% for this date. It was also reported that 52% of the crop was emerged. Iraq purchased 50,000 MT of US wheat over the weekend. Morocco is seeking 30,000 MT of soft wheat and 327,273 MT of Durum from the US with late Dec delivery. This comes from their annual preferential-tariff quota, with the tender to close November 10.

Dec 17 CBOT Wheat closed at $4.36 3/4, up 10 3/4 cents,

Dec 17 KCBT Wheat closed at $4.33 1/2, up 10 3/4 cents,

Dec 17 MGEX Wheat closed at $6.15, up 3 3/4 cents

Cattle

October 23, 2017

Live cattle futures finished the day with mixed trade as Oct was down 15 cents. Feeder cattle futures were steady to 45 cents lower. The CME feeder cattle index was 10 cents lower at $154.69 on October 20. Wholesale beef prices were lower in Monday afternoon report. Choice was down 61 cents at $199.25, with select boxes 9 cents lower at $191.05. Estimated FI cattle slaughter on Monday was at 115,000 head, 5,000 larger than the previous week and 3,000 head above the same week last year. The USDA Cold Storage report indicated frozen beef stocks at the end of September rose 2.36% from August but were still 6.01% lower than last year at 487.812 million pounds.

Oct 17 Cattle closed at $111.525, down $0.150,

Dec 17 Cattle closed at $116.750, up $0.150,

Feb 18 Cattle closed at $121.575, up $0.300,

Oct 17 Feeder Cattle closed at $153.625, unch,

Nov 17 Feeder Cattle closed at $152.725, down $0.350

Jan 18 Feeder Cattle closed at $150.875, down $0.450

Lean Hogs

October 23, 2017

Lean hog futures closed the day with nearby contracts a quarter to $1.325 lower and deferred contracts higher. The CME Lean Hog Index for 10/19 jumped another 87 cents over the previous day at $64.21. The USDA pork carcass cutout value was 30 cents higher in this afternoon’s report at $75.80. The loin and picnic were the only cuts reported lower. The national base hog was up 39 cents at $64.85 in the Monday afternoon report. FI hog slaughter on Monday was estimated at 37,000 head larger than the previous week at 483,000 head. That was 39,000 above the same week in 2016. The USDA Cold Storage report showed September 30 stocks at 616.312 million pounds, 4.05% lower than last September but a 7.05% build from August 2017. Pork belly stocks were up 8.85% compared to August at 20.914 million pounds and are still 16.62% smaller than last year.

Dec 17 Hogs closed at $63.525, down $1.325,

Feb 18 Hogs closed at $68.225, down $0.875

Apr 18 Hogs closed at $72.650, down $0.250

Cotton

October 23, 2017

Cotton futures posted strong gains on Monday amid a short covering rally, as most contracts were triple digits higher. The US cotton harvest is inching along, as the USDA reported 37% of the crop out of the field as of Sunday vs. the average of 35%. In addition, 87% of the crop has bolls opening, compared to 92% last year. Cotton condition ratings were trimmed 4 points on the Brugler500 to 351. The Adjusted World Price (AWP) was updated to 59.73 cents/lb, down 71 points from the previous week. The Cotlook A index for October 20 was down 25 points from the previous day at 77.60 cents/lb.

Dec 17 Cotton closed at 69.720, up 284 points,

Mar 18 Cotton closed at 69.190, up 242 points

Jul 18 Cotton closed at 70.590, up 210 points


Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
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