Ag Market Commentary

Corn futures closed Monday with fractional to 1 1/4 cent gains in most contracts. The Crop Progress report showed 5% of the US corn crop has been harvested, vs. the average of 6%. In addition, 21% was reported mature, a full 10% below the average. The report had corn conditions unchanged from last week at 61% gd/ex, with a Brugler500 of 357. This morning’s USDA Export Inspections report indicated corn shipments of 662,173 MT. That is 19% lower than last week and 30.62% behind last year.Analysts are expecting the USDA to show new crop world ending stocks nearly 3 MMT lower than August at 197.8 MMT.

Sep 17 Corn closed at $3.45 1/2, up 1 1/4 cents,

Dec 17 Corn closed at $3.57 1/2, up 3/4 cent,

Mar 18 Corn closed at $3.69 3/4, up 3/4 cent

May 18 Corn closed at $3.77 3/4, up 1 cent

Soybean futures finished the day with most contracts 1/2 to 2 cents in the red. Sept soy meal was down $2.00/ton, with nearby bean oil 20 points higher. The USDA reported a private export sale of 352,000 MT of soybeans to unknown destinations for 17/18 delivery through their daily system. The Export Inspections report showed soybean shipments 55.61% above last week and 16.62 larger than a year ago at 1.11 MMT. Soybeans showed 22% dropping leaves, vs. the average of 25% for this date. Conditions fell 1% to 60 gd/ex, as the Brugler500 Index was down 2 points to 356. Ahead of Tuesday’s USDA supply and demand report, traders are estimating 17/18 world soybean ending stocks will show a slight reduction from August, at 97.2 MMT.

Sep 17 Soybeans closed at $9.54 3/4, down 1 3/4 cents,

Nov 17 Soybeans closed at $9.60, down 2 cents,

Jan 18 Soybeans closed at $9.70, down 2 cents,

May 18 Soybeans closed at $9.87 1/4, down 1 1/2 cents,

Sep 17 Soybean Meal closed at $298.90, down $2.00,

Sep 17 Soybean Oil closed at $34.79, up $0.20

Wheat futures ended the Monday session with most contracts steady to 7 cents lower. Wheat inspections for export totaled 446,957 MT for the week of September 7, 53.74% larger than last week but 39.93% behind last year. The USDA Crop Progress report showed 95% of the spring wheat crop harvested, 8% above the average. Analysts are expecting the USDA will adjust the world wheat carry over slightly lower on Tuesday. They are currently projecting 264.3 MMT in 17/18 world ending stocks. Russian numbers are expected to be higher, with Australia lower. Australian 2017/18 wheat production was lowered to 21.6 MMT by the country’s ABARE agency.

Sep 17 CBOT Wheat closed at $4.12 1/4, down 1 1/2 cents,

Sep 17 KCBT Wheat closed at $4.09 1/4, down 6 1/4 cents,

Sep 17 MGEX Wheat closed at $6.26 1/4, down 4 cents

Live cattle futures settled with nearby contracts mixed and back months higher on Monday. Feeder cattle futures were mostly 57.5 cents to $1.075 higher. The CME feeder cattle index was up 75 cents from the previous day at $149.01 on September 8. Wholesale beef prices were mixed in the Monday afternoon report, with the Ch/Se spread narrowing to $1.18. Choice was down 32 cents at $191.56, as select boxes were 41 cents higher at $190.38. FI cattle slaughter was estimated at 116,000 head on Monday, which is 5,000 head larger than the same week in 2016. Cash trade was mostly around $105 last week; steady with the prior week and below the nearby futures.

Oct 17 Cattle closed at $107.200, down $0.125,

Dec 17 Cattle closed at $112.875, up $0.025,

Feb 18 Cattle closed at $116.550, down $0.075,

Sep 17 Feeder Cattle closed at $148.450, up $0.575

Oct 17 Feeder Cattle closed at $149.350, up $0.925

Nov 17 Feeder Cattle closed at $149.300, up $1.075

Lean hog futures were mostly a nickel to 57.5 cents lower on Monday, with a few deferred contracts slightly higher. The CME Lean Hog Index for 9/7 was 43 cents lower than the previous day at $68.94. The USDA pork carcass cutout value was 4 cents lower in the Monday afternoon report, with a weighted average of $82.08. The butt and picnic were the only cuts higher. The national base hog carcass was down $1.35 in the PM report at $57.32. Estimated FI hog slaughter was 450,000 through Monday, 9,000 larger than the same week in 2016.

Oct 17 Hogs closed at $61.575, down $0.575,

Dec 17 Hogs closed at $58.625, down $0.275

Feb 18 Hogs closed at $63.675, down $0.075

Cotton futures posted losses of 143 to 248 points to start the week.Hurricane Irma is now Tropical Storm Irma and is now in Georgia. Georgia represented 14% of total estimated US cotton production in the August NASS report. After the close the USDA showed 34% of the bolls opening, vs. the average of 40%. As of Sunday, 9% of the crop was harvested, compared to the average of 4%. Conditions fell 2% to 63% gd/ex, as the Brugler500 was down 2 to 365. Total export commitments for all upland cotton are now 54% of the USDA export projection. That is above the average of 38% and last year’s 33%. The Cotlook A index for September 8 was 25 points lower than the previous day to 84.05 cents/lb. China sold 26,600 MT of the 28,300 MT offered at an auction of state cotton reserves on Monday.

Oct 17 Cotton closed at 73.710, down 188 points,

Dec 17 Cotton closed at 72.110, down 248 points

May 18 Cotton closed at 71.760, down 191 points

Market Commentary provided by:

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