AgriCharts Market Commentary

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Corn

Corn futures closed Thursday with most contracts 1 to 2 1/4 cents lower. The USDA indicated old crop sales of 62,424 MT, as 671,767 MT of new crop sales were reported for the week of August 10. That was on the higher end of expectations, as total sales were 7.9% larger than last week but are still 39.33% below this time last year. A large portion of 16/17 sales were reported as switched from unknown destinations, as there was a net reduction of 260,800 MT shown for unknown. There was also 698,461 MT of corn reported for shipment, well below this time last year. On Thursday, China sold 123,811 MT of corn from 2014, with an additional 15,000 MT of 2013 corn being sold at an auction of state reserves. That was just 17.14% of the total amount offered.

Sep 17 Corn closed at $3.50 1/2, down 2 cents,

Dec 17 Corn closed at $3.64 1/4, down 2 1/4 cents,

Mar 18 Corn closed at $3.76 1/4, down 2 cents

May 18 Corn closed at $3.82 1/4, down 2 1/4 cents

Soybeans

Soybean futures posted gains of 5 1/2 to 8 1/2 cents on Thursday. Sep soy meal was up $1.50/ton, with nearby bean oil 36 points higher. This morning, the USDA announced a private export sale of 165,000 MT of optional origin soybeans to China through their daily reporting system. In Export Sales report, they showed old crop soybean sales of 453,220 MT for the week of August 10, which was up 10 fold from last week’s sales and 154.8% larger than a year ago. New crop sales came in at 899,429 MT, a 40.7% increase over a week ago but 43.7% below last year. The lead buyer for both old and new crop was China, as they purchased a total of 737,479 MT. Shipments were up 21.3% wk/wk at 742,769 MT. Total soy meal sales came in at 143,053 MT, with exports at 151,161 MT. Soy oil sales were reported at 26,926 MT, with shipments of 23,523 MT.

Sep 17 Soybeans closed at $9.30 1/4, up 8 1/2 cents,

Nov 17 Soybeans closed at $9.33, up 7 3/4 cents,

Jan 18 Soybeans closed at $9.41 1/4, up 7 3/4 cents,

May 18 Soybeans closed at $9.56 3/4, up 7 3/4 cents,

Sep 17 Soybean Meal closed at $296.10, up $1.50,

Sep 17 Soybean Oil closed at $33.21, up $0.36

Wheat

Wheat futures finished the Thursday session with most CBT and KC contracts 2-5 1/4 cents in the red. MPLS was down 3 1/4 cents in nearby Sep with deferred contracts higher. This morning’s USDA Export Sales report indicated 633,565 MT in 17/18 sales, larger than expectations and 29.4% above last year at this time. Thailand was the largest buyer, at 110,100 MT. There have yet to be any 18/19 sales reported, as we are now in week #11 in the current marketing year. Weekly wheat shipments of 545,899 MT were reported, down 23.96% since last year. A survey of analysts by Bloomberg shows estimated Canadian wheat production for 2017 at 26.4 MMT, compared to the USDA’s 28.35 MMT. Stats Can will report on August 31. Saudi Arabia is seeking 480,000 MT of wheat through the Saudi Grains Organization, for Oct-Dec delivery. This tender will close on Friday.

Sep 17 CBOT Wheat closed at $4.14, down 5 1/4 cents,

Sep 17 KCBT Wheat closed at $4.14 1/4, down 5 1/4 cents,

Sep 17 MGEX Wheat closed at $6.70 1/4, down 3 1/4 cents

Cattle

Live cattle futures fell 87.5 cent to $2.35 on Thursday, as weaker cash trade was reported. Feeder cattle futures were $1.375 to $2.40 lower. The CME feeder cattle index was 5 cents lower than the previous day at $144.44 for August 16. Wholesale beef prices were lower again in the Thursday afternoon report, with choice down $1.88 at $195.63 and select boxes 84 cents lower at $194.20. The CH/SE spread has now narrowed to only $1.43, the lowest since February 20. Cash trade developed today, as sales of $110-$110.50 were reported across most regions today, down $5 since last week. Week to date FI cattle slaughter was estimated at 467,000 head through Thursday, 2,000 fewer than last week but 14,000 larger than the same week last year. Beef export sales for 2017 during the week of August 10 were reported at 12,860 MT, 22.1% lower than a week ago and 9.5% below the same week last year. Exports for that week came in at 15,648 MT, 6.7% larger than last week and a year ago.

Aug 17 Cattle closed at $107.125, down $2.350,

Oct 17 Cattle closed at $106.225, down $2.100,

Dec 17 Cattle closed at $108.275, down $2.025,

Aug 17 Feeder Cattle closed at $140.475, down $1.775

Sep 17 Feeder Cattle closed at $140.725, down $2.400

Oct 17 Feeder Cattle closed at $140.475, down $2.300

Lean Hogs

Lean hog futures were down 65 cents to $1.85 on the day. The CME Lean Hog Index for 8/15 was 35 cents lower than the previous day at $84.03. The USDA pork carcass cutout value was 42 cents higher in the Thursday afternoon report, with a weighted average of $91.97. The butt, picnic, and belly primal cuts were all reported lower, with the rib $12.19 higher and responsible for the higher cutout value overall. The national base hog carcass was down 93 cents at $75.46 in the PM report. FI hog slaughter was estimated at 1,785,000 week to date through Thursday, 72,000 head larger than the previous week and up 57,000 from the same week in 2016. The USDA reported 18,348 MT of 2017 export sales for the week of August 10, 3% shy of last week but 20.3% larger than this time last year. Exports were nearly even with last year at 17,303 MT, 3.2% behind last year.

Oct 17 Hogs closed at $66.925, down $1.850,

Dec 17 Hogs closed at $61.800, down $1.675

Feb 18 Hogs closed at $66.300, down $1.400

Cotton

Cotton futures settled Thursday with mixed trade, as Oct was down 10 points with Dec 9 points higher. This morning’s USDA Export Sales report showed 186,686 RB of 17/18 all upland cotton sales for the week of August 10. Vietnam was the lead buyer, purchasing 37,400 RB of old crop running bales. There was an additional 66,000 RB reported for 18/19 sales, with Pakistan the only buyer. Weekly shipments of 200,354 RB were 75.82 larger wk/wk and 13.94% above last year. The Cotlook A index for August 16 was down 50 points from the previous day to 77.70 cents/lb. The USDA cotton AWP for the coming week will be 59.70, down from 62.46 cents/lb in the week just ended. China sold 27,020 MT of the 29,561 MT offered at Thursday’s auction of state reserves.

Oct 17 Cotton closed at 67.450, down 10 points,

Dec 17 Cotton closed at 66.910, up 9 points

May 18 Cotton closed at 67.330, down 4 points


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