AgriCharts Market Commentary


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Corn up by Three After EIA Report

Corn futures were 3 cents higher on the day. The delayed EIA weekly report showed an uptick in daily ethanol production by another 8,000 barrels per day, with 971,000 bpd produced for week ending 10/11. That implies more corn consumption. Ethanol stocks are also up, increasing 817,000 barrels to 22.061 million barrels. September daily production was an average of 48,000 barrels lower, for an approximated 960,000 barrel difference between the two months. Argentinean corn was reported Thursday afternoon to be 24.2% planted. The department of agricultural estimates from Buenos Aires based that percentage from the 15.814 million acres that are expected to be planted. US corn export sales for the week ending October 10 are expected to be in the range of 400-800,000 MT in Friday’s export sale report.

DEC 19 Corn closed at $3.94 3/4, up 3 cents,

MAR 19 Corn closed at $4.06 1/2, up 3 cents,

MAY 20 Corn closed at $4.12 3/4, up 3 cents,

JUL 20 Corn closed at $4.17 3/4, up 3 cents1

-- provided by Brugler Marketing & Management

Soybean Market Finishes Thursday Higher

Soybeans futures saw 2 1/2 to 3 1/2 cent increases on Thursday. Soybean meal finished $2.00/ton higher, while soy oil remained fairly steady dropping 1 point. Weekly Export Sales data will be pushed back until Friday due to Monday's Holiday. Cargill announced a 225 million dollar expansion in Sidney Ohio, with the investment in soybean crush and soy oil refineries for the plant. Trade estimates, ahead of tomorrow’s delayed release of USDA export sales report, range 900k-1.06 MMT for beans; a substantial decrease from last week’s sales of 2.092 MMT. Traders are also anticipating the report to show up to 400,000 MT (150k-400k) for soy meal, last week export sales were 364,722 MT. Soy oil is expected to see 0-25,000 MT of export sales this afternoon, as compared to the 1,150 MT of export sales last week..

NOV 19 Soybeans closed at $9.31 1/2, up 3 1/2 cents,

JAN 19 Soybeans closed at $9.45 1/4, up 3 cents,

MAR 20 Soybeans closed at $9.57, up 2 1/2,

MAY 20 Soybeans closed at $9.65 1/4, up 2 cents,

DEC 19 Soybean Meal closed at $306.80, up $2.00,

DEC 19 Soybean Oil closed at $30.39, down $0.01

-- provided by Brugler Marketing & Management

Wheat Closes Thursday Higher

Wheat futures end Thursday’s session higher. Chicago wheat led the way with 12 1/4 gains for Dec contract. Kansas City wheat gained 6 1/4, while MLPS spring wheat posted 1 1/2 cent gains at Thursday’s close. Argentina is 100% planted for their 2029/20 wheat, as per their WAG report released Thursday afternoon. Their total planting was 6.6 million hectares (16.31 acres); this was an increase over last year’s 6.2 million planted. Due to early spring frosts the Department of Agricultural Estimates adjusted their production estimate to 20.2 MMT. USDA is expected to show 250,000-500,000 MT in all wheat export sales for the week that ended on October 10. Saudi Arabia is tendering for 595,000 MT of wheat, with a deadline on Friday. Strategie Grains raised their EU wheat production estimate by 1 MMT to 145.5 MMT

DEC 19 CBOT Wheat closed at $5.25 1/2, up 12 1/4 cents,

DEC 19 KCBT Wheat closed at $4.31 1/4, up 6 1/4 cents,

DEC 19 MGEX Wheat closed at $5.52, up 1 1/2 cents,

--provided by Brugler Marketing & Management

Cattle Ends Thursday Mixed

Live cattle futures were marginally mixed in the front months. Feeder cattle futures dropped as much as $1.60 on Thursday. USDA official slaughter for week ending Saturday October 5th is 644,676 head, with 47.2 % steer, 30.9% heifer and 20.1 % cow. The CME Feeder Cattle index another 3 cents higher on 10/16 to $145.15. Wholesale boxed beef prices close Thursday mixed to narrow the spread to 25.51. Choice boxes fell 17 cents to $218.11, with Select boxes noticing a gain of $1.23 up to $192.60. USDA estimated week to date FI cattle slaughter through Wednesday at 462,000 head. That is 5,000 head below last week and 9,000 lower from the same week last year. FCE’s trial sale this Friday has 941 head listed for sale. A few $111 sales were reported in the WCB this week according to USDA. A Cargill plant in Dodge City was down for the day due to an explosion in a stand-alone building. It is not expected to remain out of operation for long.

OCT 19 Cattle closed at $112.400, up $0.050,

DEC 19 Cattle closed at $114.375, up $0.500,

FEB 20 Cattle closed at $119.550, down $0.050,

OCT 19 Feeder Cattle closed at $144.200, down $1.025,

NOV 19 Feeder Cattle closed at $144.325, down $1.600,

JAN 19 Feeder Cattle closed at $140.850, down $1.525

--provided by Brugler Marketing & Management

Lean Post Triple Digit Losses

Lean Hog futures decrease Thursday to finish down by $1.07 to $2.45 in nearby contracts. Thursday’s official slaughter under federal inspection revealed that for the week ending 10/5 2,660,215 hogs were slaughtered, with a 2.1% sow slaughter rate. The CME Lean Hog Index closed $1.02 higher to $62.92 on Oct 15. The USDA pork carcass cutout value was down $1.44 at Thursday’s close to $76.28. Most primal cuts finished Thursday mixed; belly dropped $3.29, while picnic shoulder gained $1.63. The national average base hog value closed at 57.87, down by $0.81 on Thursday’s. USDA estimated WTD hog slaughter at 1.962 million head, up 10,000 head from last week and 66,000 larger than last year.

DEC 19 Hogs closed at $68.150, down $2.475,

FEB 19 Hogs closed at $77.650, down $1.20,

APR 20 Hogs closed at $83.800, down $1.075,

-- provided by Brugler Marketing & Management

Cotton Responds to a Higher AWP

Cotton futures posted gains from 13 to 55 points in nearby contracts to finish off Thursday’s session. Ted Mckinney on behalf of USDA is in Vietnam to discuss trade agreements amid trade war with China. Portions of western TX are expected to remain dry for the next 7 days, with the eastern half and Southeastern US expected to receive some moisture from a tropical storm. The Cotlook A Index bounced back up 120 points on Oct to 74.00 cents/lb. The updated Adjusted World Price of cotton is now 55.26, up 1.36 from last Thursday’s AWP.

DEC 19 Cotton closed at 65.09, up 55 points,

MAR 19 Cotton closed at 65.61, up 42 points

MAY 20 Cotton closed at 66, up 28 points

JUL 20 Cotton closed at 66.28, up 13 points

-- 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
E-mail: alanb@bruglermktg.com
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