Ag Market Commentary

Corn futures are 1 to 2 cents lower after being up 1 to 1 1/4 cents in the front months on Thursday. The Export Sales report showed 19/20 Corn bookings for the week ending 9/26 were 562,616 MT. That was a 13.9% increase from the previous week but down 60.68% from the same week last year. Mexico was the lead buyer of 361,100 MT during that week, with 88,000 MT sold to Japanese importers. US export shipments since September 1 have been the lowest since at least 1990. The Buenos Aires Grain Exchange indicated the Argentina corn crop was 20.6% planted as of 10/2. Census August US trade data will be released this morning, to round out the 18/19 export MY for corn with official numbers.

-- provided by Brugler Marketing & Management



Soybeans futures are trading mostly 1 cent per bushel lower this morning. They were down 1 to 2 cents in the front months at Thursday’s close. There were scattered reports of frost damage on late planted beans. Soybean meal was down $2.30/ton with soy oil closing 74 points higher. USDA’s weekly Export Sales report indicated 2.076 MMT in soybean sales for week ending 9/26, exceeding trade estimates. China purchased 1.558 MMT of that total, their largest weekly purchase since late March. Soy meal sales in the last full week of September totaled 158,276 MT, with a majority for 19/20 as the 18/19 meal MY is nears a close (Sep 30). Bean oil sales were tallied at 2,495 MT for that week.

-- provided by Brugler Marketing & Management



Wheat futures are 1/2 to 2 cents lower in the Chicago and KC contracts this morning, with MPLS spring wheat mostly 1 cent higher than the Thursday close. They rounded out Thursday with minimal activity, both Dec HRW and HRS remaining unchanged, but SRW saw a slight drop of 1/4 cent. USDA announced a private export sale of 130,000 MT of White Wheat to China for 19/20 delivery. Total wheat sales to China for the 19/20 MY previously were 60,000 MT as of 9/26. Export commitments for wheat are now 14.4% larger than this time a year ago at 474 mbu. To date, commitments by class show 37.8% of the total for HRW and 27.5% for HRS, with White wheat at 18.2% and SRW taking up 13% of the total.

---provided by Brugler Marketing & Management



Live cattle futures closed up 15 to 75 cents on Thursday. Light cash trade was reported in the South by USDA at $106. October LC options expire today, but futures have three weeks until they have to converge with cash. Feeder cattle futures ended Thursday 25 to 42 cents higher in the nearby contracts. Beef export sales last week totaled 12,491 MT. The CME Feeder Cattle Index was down 17 cents on Oct. 2 at $142.92. Wholesale boxed beef prices were mixed on Thursday. Choice boxes were down 91 cents to $212.06, with Select boxes up $1.31 to $187.21, narrowing the Chc/Select spread to $24.85. USDA estimated week to date FI slaughter is 467,000 head, which is down 4,000 from the same Thursday last year.

--provided by Brugler Marketing & Management



Lean Hog futures saw gains of 22.5 cents for Oct, but down by as much as a dollar for Dec. The CME Lean Hog Index was up 78 cents to $57.83 on Oct 1. The USDA pork carcass cutout value was up $1.24 to $75.36 on Thursday afternoon. Primal cuts closed mixed, with ham down $2.76 and loin $3.29 higher. The national average base hog value was 68 cents higher at $49.99. FI week to date estimated hog slaughter is ahead of last year’s pace by 5.2% at 1.957 million head. USDA pork export sales were 30,974 MT in the week of 9/26, with 10,700 MT for Mexico. Shipments were 23,152 MT in that week. Last week’s exports to China were 6,022 MT of pork with 2019 sales 1,350 MT and 2020 sales of 3,483 MT. African Swine Fever continues to be a problem for Southeastern Asian countries, as South Korea confirmed another 2 cases, with Vietnam and China also experiencing huge herd losses.

-- provided by Brugler Marketing & Management



Cotton futures are trading 16 to 30 points higher this morning as the stealth rally continues. They closed 22 to 43 points higher yesterday but failed to hold triple digit gains from earlier in the session. All upland cotton export sales during the week of September 26 were 177,837 RB for 19/20, the second largest weekly total this MY. That was up 14.56% wk/wk and well above the same week last year. There were just 7,480 RB sold for 20/21. Sales to Pakistan were 62,900 RB, with China buying 9,740 RB of 19/20. Weekly exports were 154,745 RB for the week ending in 9/26, which is 12% lower than last week and down 14% from the same time last year. Accumulated exports this MY to date are 1.756 million RB, which is up 25.98% from this time last year. The Cotlook A Index was unch at 71.70 cents/lb for October 2. The updated AWP for this week saw a slight gain to 53.36 cents/lb.

-- provided by Brugler Marketing & Management






Market Commentary provided by:

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