AgriCharts Market Commentary

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Corn

Corn futures are showing fraction to 1 1/4 cent gains in most contracts at midday. This morning’s EIA report indicated that daily ethanol production in the week that ended 7/13 was back up 31,000 barrels per day at 1.064 million bpd. Stocks of ethanol were drawn down by 625,000 barrels to 21.768 million barrels on large reductions in the Midwest and Gulf. Analysts are looking for Thursday’s Export Sales report to show 300,000-600,000 MT in old crop corn sales. New crop sales are seen at 200,000-500,000 MT for the week that ended 7/12. A South Korean importer purchased 60,000MT of US corn in a tender on Wednesday.

Sep 18 Corn is at $3.47 1/4, up 1 cent,

Dec 18 Corn is at $3.61, up 1 1/4 cents,

Mar 19 Corn is at $3.72 1/2, up 3/4 cent

May 19 Corn is at $3.79 1/4, up 1 cent

Soybeans

Soybean futures are trading 1 to 2 cents in the green so far on Wednesday. Nearby soy meal is up 20 cents/ton, with soy oil 24 points higher. The USDA reported a private export sale of 199,500 MT of soybeans to Pakistan for 18/19 delivery through their daily reporting system. Trade estimates ahead of tomorrow’s FAS report are showing 200,000-500,000 MT of old crop soybean sales in the week that ended 7/12. New crop is expected to be tallied in a range of 100,000-500,000 MT. Soy meal sales are seen at 75,000-350,000 MT, as 8,000-40,000 MT is projected for soy oil. China sold 140,068 MT of soybeans from state reserves in an auction on Wednesday, totaling 28.29% of the amount offered.

Aug 18 Soybeans are at $8.41 1/2, up 2 cents,

Sep 18 Soybeans are at $8.47, up 2 cents,

Nov 18 Soybeans are at $8.57, up 1 3/4 cents,

Jan 19 Soybeans are at $8.67, up 1 1/2 cents,

Aug 18 Soybean Meal is at $329.30, up $0.20

Aug 18 Soybean Oil is at $27.97, up $0.24

Wheat

Wheat futures are mostly steady to marginally higher in the CBT and KC contracts, ignoring nearby September. MPLS is down 2 to 3 cents at midday. The current 5-day QPF shows rain forecasted for much of the Dakotas and MN, with that area expected to dry out in the extended 8-14 day outlook. A poll of analysts shows expectations for Thursday’s Export Sales report at 150,000-500,000 MT in all new crop wheat sales during the week of 7/12. That would be well above last week’s extremely low 136,408 MT. President Trump indicated on Wednesday that the US may work out a separate trade deal with Mexico as fallout from the current NAFTA talks.

Sep 18 CBOT Wheat is at $4.96 1/2, down 1 1/4 cents,

Sep 18 KCBT Wheat is at $4.90, down 3/4 cent,

Sep 18 MGEX Wheat is at $5.31, down 2 1/4 cents

Cattle

Live cattle futures are showing sharp triple digit gains on Wednesday. Feeder cattle futures also sharply higher, with nearby Aug up $3.025. The CME feeder cattle index was up 10 cents from the previous day at $148.37 on 7/16. Wholesale boxed beef values were higher on Wednesday morning. Choice boxes were up 26 cents to $204.65, while Select boxes were 28 cents higher at $197.14. Estimated FI cattle slaughter was 236,000 head through Tuesday. That was up 10,000 from the same week last year but down 3,000 head vs. last week on revised Monday slaughter. A Reuters poll of analysts shows estimates for July 1 cattle on feed at 11.257 million head, up 4% from last year. Wednesday’s Fed Cattle Exchange saw sales on 142 of the 428 head offered at $112. There was also a lot that passed on an offer of $111.

Aug 18 Cattle are at $108.600, up $2.175,

Oct 18 Cattle are at $110.325, up $1.825,

Dec 18 Cattle are at $114.000, up $1.375,

Aug 18 Feeder Cattle are at $154.300, up $3.025

Sep 18 Feeder Cattle are at $154.550, up $2.850

Oct 18 Feeder Cattle are at $154.500, up $2.500

Lean Hogs

Lean hog futures are down 27.5 to 77.5 cents at midday. The CME Lean Hog Index was down 65 cents on July 16, to $79.69. The USDA pork carcass cutout value was down $1.74 on Wednesday morning at $82.46. The butt and belly were the only primal reported higher. The national base carcass price was $70.59 in the Wednesday AM report, down $1.39 from the day prior. USDA estimated weekly FI hog slaughter at 892,000 head through Tuesday. That is 39,000 head above last year, but down 9,000 head from the week previous.

Aug 18 Hogs are at $67.625, down $0.275,

Oct 18 Hogs are at $51.425, down $0.775

Dec 18 Hogs are at $46.875, down $0.600

Cotton

Cotton futures are currently steady to 14 points higher in the front months on Wednesday, on continued dryness seen for much of TX in the next week. That is piling on top of the already deteriorating crop conditions. The weekly Export Sales report will be release Thursday morning at 7:30 a.m. CDT. The Cotlook A index was steady from the previous day at 97.70 cents/lb on July 17. The weekly USDA AWP currently at 76.17 cents/lb will be updated on Thursday.

Oct 18 Cotton is at 89.2, unch,

Dec 18 Cotton is at 88.35, up 1 point

Mar 19 Cotton is at 88.21, up 4 points

May 19 Cotton is at 88.280, up 14 points


Market Commentary provided by:

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