Ag Market Commentary

Corn futures are currently a penny to 2 cents higher but off of earlier highs. The Wednesday morning EIA report showed ethanol production for the week of 9/8 down 13,000 barrels per day to 1.047 bpd. Ethanol stocks for the end of that week were up 16,000 barrels to 21.132 million barrels. In the supply and demand table for new crop corn, the USDA dropped FSI 75 mbu (ethanol down 25 mbu). The USDA also dropped the national cash average midpoint estimate 10 cents to $3.20. Exports for old crop corn was increased 70 mbu to 2.295 bbu, with corn used for ethanol down 15 mbu. The FSA reported September corn prevent plant acres, just 4,587 acres above August at 954,931 acres. China plans to start implementing nationwide use of E10 by 2020 according to reports, boosting demand for ethanol and speeding up consumption of out of condition corn stocks.

Sep 17 Corn is at $3.42, up 2 cents,

Dec 17 Corn is at $3.52 1/2, up 1 cent,

Mar 18 Corn is at $3.65, up 1 1/4 cents

May 18 Corn is at $3.73, up 1 cent

Soybean futures are showing 6 1/2 to 7 1/4 cent gains in the front months on bargain hunting following yesterday’s bearish report. Sept soy meal is up $4.10/ton, with nearby bean oil 4 points higher. The USDA announced a private export sale of 167,370 MT of soybeans to Mexico for 17/18 delivery through their daily reporting system. Old crop ending stocks were trimmed 25 million bushels on stronger exports and crush yesterday. A 25 mbu increase in new crop exports and lower beginning stocks offset larger production to leave ending stock unchanged. The 17/18 cash average process was lowered a dime to $9.20.World ending stock for 17/18 shifted down just 0.25 MMT, as larger US production was offset by smaller world production and carryover. Prevent plant soybean acres for September came in 3,666 acres short of August at 432,944 acres across the US.

Sep 17 Soybeans are at $9.50 3/4, up 6 1/2 cents,

Nov 17 Soybeans are at $9.57 3/4, up 7 1/4 cents,

Jan 18 Soybeans are at $9.68, up 7 1/4 cents,

Mar 18 Soybeans are at $9.76 3/4, up 7 1/4 cents,

Sep 17 Soybean Meal is at $299.20, up $4.10,

Sep 17 Soybean Oil is at $34.88, up $0.04

Wheat futures are mostly higher in the nearby KC and CBT contracts, as MPLS front months are steady at midday. The cash average farm price for 17/18 was lowered 20 cents to $4.60 in the WASDE report yesterday.Russian production was increased 3.5 MMT in Tuesday’s USDA report to 81 MMT, while Australian and EU production ideas were reduced. All wheat prevent plant acres reported through September were at 616,085 acres, 2,201 larger than August. The Ukraine Ag ministry estimates that 8.25% of the country’s projected 15.07 million winter wheat acres have been planted.

Sep 17 CBOT Wheat is at $4.26, up 6 1/2 cents,

Sep 17 KCBT Wheat is at $4.20 1/2, up 4 1/2 cents,

Sep 17 MGEX Wheat is at $6.26 1/4, unch ,

Live cattle futures are mostly higher, with Oct up 55 cents. Feeder cattle futures are 37.5 to 65 cents higher in the nearby contracts. The CME feeder cattle index was down 4 cents from the previous day at $148.97 on September 11. Wholesale beef prices were lower in the Wednesday morning report, with the Ch/Se spread going back positive to $1.35. Choice was down 7 cents at $190.72, as select boxes were $1.49 lower at $189.37. FI cattle slaughter was estimated at 233,000 head through Tuesday, which is 10,000 head larger than the same week in 2016. The FCE online auction showed one lot of 128 head sold at an average price of $104.75. Three other lots saw offers passedon by feedlots.

Oct 17 Cattle are at $106.825, up $0.550,

Dec 17 Cattle are at $112.200, up $0.650,

Feb 18 Cattle are at $116.025, up $0.775,

Sep 17 Feeder Cattle are at $148.350, up $0.375

Oct 17 Feeder Cattle are at $149.750, up $0.600

Nov 17 Feeder Cattle are at $149.900, up $0.650

Lean hog futures are trading 27.5 to 40 cents lower at midday. The CME Lean Hog Index for 9/11 was 54 cents lower than the previous day at $67.38. The USDA pork carcass cutout value was $1.00 higher at $81.41 in the AM report. The ham and belly primals were reported lower. The national base hog carcass was down $1.16 in the AM report at 54.75. Estimated FI hog slaughter was 901,000 through Tuesday, 22,000 larger than the same week in 2016.

Oct 17 Hogs are at $59.050, down $0.400,

Dec 17 Hogs are at $56.750, down $0.350

Feb 18 Hogs are at $62.450, down $0.275

Cotton futures are UNCH to 72 points lower on Wednesday. In Tuesday’s WASDE report, the USDA lowered the cash average farm price a penny on both sides of the range to a mid-point of 60 cents/lb. They also raised the projected US export number 700,000 bales to 14.9 million bales. World production was raised for India, Brazil, and Australia along with the US. The Cotlook A index for September 12 was 230 points lower at 82.1 cents/lb. At their daily auction of state reserves, China sold 27,100 MT of the 27,446 MT of cotton offered.

Oct 17 Cotton is at 69.99, down 72 points,

Dec 17 Cotton is at 68.62, down 49 points

Mar 18 Cotton is at 68.12, down 35 points

Jul 18 Cotton is at 69.480, unch,

Market Commentary provided by:

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