AgriCharts Market Commentary

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Corn 5 to 6 Cents Lower On Weekend Rains

Corn futures open the week 5 to 6 cents lower as rain hit the dry eastern Corn Belt over the weekend. Prices were technically oversold following the early week melt down and there was some bottom picking activity being attempted in the December contract on Friday. Preliminary open interest rose 11, 172 contracts in the December on Friday, but was down 3,808 overall. 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. South Korea purchased 63,000 MT for corn to be delivered in January 2020. Areas of dryness shrank over the weekend in the ECB, with up to 2.5 inches reported in western Ohio and 1+ inches in northern IL. It was T-storm activity, so not everyone got it, but some of the pockets on the Drought Monitor got meaningful rain.

--- provided by Brugler Marketing & Management

Soybeans Pull Back t to 7 Cents Per Bushel

Soybeans are 6 to 7 cents lower in early Monday trading. Meal is down about $1.50/ton and soy oil is off 20 points to start the week. September soybean meal was up $3.10/ton, with soy oil 6 points higher on Friday. Friday’s report showed money managers reduced their CFTC net short positions this week to 66,450, a decline of 9%. 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.

-- provided by Brugler Marketing & Management

Wheat Markets Lower on Sunday Night

Wheat futures contracts start the week 1 1/2 to 4 1/2 cents lower in all three markets. The dollar index is stronger, although the buck is weaker vs. the euro. Stock market futures are higher, sucking speculative money away from commodities. The Commitment of Traders report showed spec funds 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.

--- provided by Brugler Marketing & Management

Cattle Market Torn Between Beef and Live Cattle Values

Live cattle futures 27 to 82 cents lower on Friday. Preliminary open interest rose 4,019 contacts on net new selling interest. Feeder cattle futures were 57 to 120 lower. 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 fueled by the Tyson outage. 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 last week, 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.

-- provided by Brugler Marketing & Management

Lean Hogs Puzzled By Pork Weakness Against Rising Beef

Lean Hog futures lost $1.67 to $3.00 on Friday. The CME Lean Hog Index was down $1.97 at $77.89 on August 14. 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 was 2.457 million head, a 143,000 head increase from the previous week and 38,000 head more the same week a year ago.

--- provided by Brugler Marketing & Management

Cotton Market 5 to 25 Points Lower

Cotton futures are trading 5 to 25 points lower this morning. 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. Dry conditions continue in most of Texas, with very limited precipitation seen in the next 5 days excluding the Panhandle.

--- provided by Brugler Marketing & Management

Market Commentary provided by:

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