Ag Market Commentary

Corn futures were steady to 2 1/4 cents lower in most nearby contracts on Thursday. The USDA reported a private export sale of 142,876 MT of 18/19 corn to Costa Rica through their daily reporting system this morning. The weekly Export Sales report indicated that 774,243 MT of 18/19 corn was sold in the week that ended 9/6. There were also 2.926 MMTs rolled over to 2018/19 delivery from 17/18 sales. Export shipments for that week were tallied at 991,521 MT, with 264,317 MT for 17/18 and the balance for 18/19. On Wednesday the USDA trimmed their average farm price range for corn by 10 cents to $3.00-$4.00. An auction of Chinese state reserves on Thursday saw 2.902 MMT of corn sold, totaling 73.28% of the amount offered. The Rosario Grain Exchange estimates that the Argentina corn crop will total 43 MMT for 18/19, down 2 MMT from their previous estimate.

Sep 18 Corn closed at $3.36 1/4, down 5 1/4 cents,

Dec 18 Corn closed at $3.50 1/2, down 2 cents,

Mar 19 Corn closed at $3.62 3/4, down 2 1/4 cents

May 19 Corn closed at $3.71 1/4, down 2 1/4 cents

Soybean futures closed with 5 to 7 cent losses in most contracts. Soymeal was down $4.40/ton, with soy oil 19 points lower. Private export sales reported by the USDA this morning saw 108,010 MT to Mexico (18/19), with 40,000 MT (18/19) and 80,000 MT (19/20) to Unknown. FAS showed that 693,453 MT of 18/19 soybeans were sold for export in the week that ended on September 6. There was also 2.430 MMT carried over from leftover 17/18 sales. There was a total of 1.138 MMT of soybean shipments during the week that was over last Thursday, with 242,484 for 17/18 and the rest for new crop. There was a total of 132,995 MT shipped to China in that week. Soymeal export sales in that week totaled 233,194 MT, with soy oil at 5,176 MT. The USDA cut their national average can price projection for soybeans another 30 cents on Wednesday to $7.35-$9.85, with an $8.60 mid-point.

Sep 18 Soybeans closed at $8.22 3/4, down 6 1/4 cents,

Nov 18 Soybeans closed at $8.33 1/4, down 6 3/4 cents,

Jan 19 Soybeans closed at $8.47, down 6 1/2 cents,

May 19 Soybeans closed at $8.72 1/2, down 5 1/2 cents,

Sep 18 Soybean Meal closed at $311.30, down $4.40,

Sep 18 Soybean Oil closed at $27.44, down $0.19

Wheat futures ended the Thursday session with most KC contracts 8 to 10 cents lower. CBT was down 5 to 6 cents, with MPLS steady to 3 cents in the red. Export sales of all wheat during the week of 9/6 were 387,570 MT. That was a 2.1% jump from the week prior and 22.4% larger than the same week in 2017. Taiwan importers were the lead buyers of 112,500 MT, with Mexico next up at 37,000 MT. There was 429,086 MT in export shipments in that week. USDA left their mid-point for the cash average price for wheat at $5.10 on Wednesday, while trimming the range by 20 cents to $4.70-$5.50. Morocco issued a preferential tariff quota for 336,364 MT of US wheat on Thursday, with the tender to close on Sep 28 and delivery by Dec 31. Saudi Arabia is seeking 595,000 MT of wheat in a tender to close on Friday. Algeria purchased 630,000 MT of wheat on Thursday, with the origin likely French. Iraq is seeking 50,000 MT of wheat from the US, Canada, and Australia with the tender to close on 9/23.

Sep 18 CBOT Wheat closed at $4.71 3/4, down 10 cents,

Sep 18 KCBT Wheat closed at $4.77 1/2, down 5 cents,

Sep 18 MGEX Wheat closed at $5.51, unch,

Live cattle futures settled the day with the front months 12.5 to 67.5 cents lower and back months higher. Feeder cattle futures were up 25 to 75 cents, getting a little help from recent losses in corn. The CME feeder cattle index was down 3 cents on September 12 at $152.60. Wholesale boxed beef values were lower on Thursday afternoon. Choice boxes were down 75 cents to $204.04, while Select boxes were 3 cents lower at $197.24. USDA estimated weekly FI cattle slaughter at 476,000 head through Thursday, which is 6,000 head above the same week in 2017. Weekly export sales of beef in the week that ended on 9/6 totaled 10,825 MT. Shipments totaled 15,719 MT that week. Cash bids are being shown at $106 today, with feedlots passing on $108 in yesterday’s FCE auction.

Oct 18 Cattle closed at $110.800, down $0.675,

Dec 18 Cattle closed at $115.400, down $0.125,

Feb 19 Cattle closed at $119.900, up $0.400,

Sep 18 Feeder Cattle closed at $154.950, up $0.325

Oct 18 Feeder Cattle closed at $155.400, up $0.375

Nov 18 Feeder Cattle closed at $155.075, up $0.250

Lean hog futures saw mixed trade on Thursday, with nearby Oct down 12.5 cents and Dec up 30. The CME Lean Hog Index was up 94 cents on September 11 to $48.49. The USDA pork carcass cutout value was 19 cents higher @ $71.05 in the Thursday afternoon FOB plant report. The national base hog carcass value was $1.22 higher @ $48.92 this afternoon. FI hog slaughter through Thursday was estimated at 1.749 million head, down 80,000 head from the same week last year. Pork export sales for the week of Sep 6 were tallied at 18,717 MT. Exports of 18,701 MT were reported in the Labor Day shortened week.

Oct 18 Hogs closed at $55.675, down $0.125,

Dec 18 Hogs closed at $55.925, up $0.300

Feb 19 Hogs closed at $65.350, up $0.650

Cotton futures finished the Thursday session with most contracts 74 to 114 points lower. This morning’s USDA Export Sales report indicated that 81,719 RB of 18/19 upland cotton was sold in the week of 9/6. That was down from the week prior, but 25.31% larger than the same week last year. Sales for 19/20 were shown at 17,704 RB. Pima sales were tallied at 5,800MT. Exports of upland cotton were 25% larger than last year at 135,731 MT. USDA trimmed their national cash average price range for cotton to 68-82 cents, adding 5 cents to the midpoint at 75 cents. The Cotlook A index was up down 10 points from the previous day at 92.40 cents/lb on September 12. The USDA AWP was updated to 73.79 cents/lb this morning, just 2 points above last week.

Oct 18 Cotton closed at 81.620, down 114 points,

Dec 18 Cotton closed at 81.510, down 113 points

Mar 19 Cotton closed at 81.970, down 106 points

Market Commentary provided by:

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