Ag Market Commentary

Corn futures finished the day with most contracts steady to fractionally mixed. 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. Analysts are expecting 17/18 sales of 0.8-1.1MMT ahead of Thursday’s export sales report. The USDA dropped their 2017/18 national cash average midpoint estimate 10 cents to $3.20. 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 closed at $3.38 1/2, down 1 1/2 cents,

Dec 17 Corn closed at $3.51 1/2, unch,

Mar 18 Corn closed at $3.63 3/4, unch,

May 18 Corn closed at $3.72, unch

Soybean futures closed Wednesday with most contracts 5 1/2 to 10 cents higher. on bargain hunting following yesterday’s bearish report. Sept soy meal was up $5.20/ton, with nearby bean oil down 12 points. The USDA announced a private export sale of 167,370 MT of soybeans to Mexico for 17/18 delivery through their daily reporting system. Traders are projecting Thursday’s Export Sales report to show 1-1.3 MMT in 17/18 soybean sales. They are also expecting 50,000-400,000 MT in soy meal sales, with soy oil sales ranging 0-40,000 MT. The 17/18 cash average process was lowered a dime to $9.20. Ahead of Friday’s NOPA report, analysts are estimating August crush of NOPA members will be 137.501 million bushels. Aug 31 member soy oil stocks are seen at 1.396 billion pounds. Prevent plant soybean acres for September came in 3,666 acres short of August at 432,944 acres across the US.

Sep 17 Soybeans closed at $9.53, up 8 3/4 cents,

Nov 17 Soybeans closed at $9.60 1/2, up 10 cents,

Jan 18 Soybeans closed at $9.70 3/4, up 10 cents,

May 18 Soybeans closed at $9.87 3/4, up 9 1/4 cents,

Sep 17 Soybean Meal closed at $300.30, up $5.20,

Sep 17 Soybean Oil closed at $34.72, down $0.12

Wheat futures settled the day mostly steady to 3 cents higher, as CBT was lower in the back months. Wheat export sales for the week of September 7 are estimated to be 350,000-550,000 MMT in Thursday’s USDA report. The cash average farm price for 17/18 was lowered 20 cents to $4.60 in the WASDE report yesterday.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 closed at $4.20 3/4, up 1 1/4 cents,

Sep 17 KCBT Wheat closed at $4.18 1/4, up 2 1/4 cents,

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

Live cattle futures posted gains of 40 cents to $1.30 cents higher. Feeder cattle futures were 35 to 62.5 cents in the green. The CME feeder cattle index was up 5 cents from the previous day at $149.02 on September 12. Wholesale beef prices were lower in the Wednesday afternoon report, with the Ch/Se spread going back positive to $1.71. Choice was down 39 cents at $190.40, as select boxes were $2.17 lower at $188.69. FI cattle slaughter was estimated at 350,000 head through Wednesday, which is 15,000 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. Some cash market bids were floated at $103, with asking prices at $108.

Oct 17 Cattle closed at $107.550, up $1.275,

Dec 17 Cattle closed at $112.850, up $1.300,

Feb 18 Cattle closed at $116.150, up $0.900,

Sep 17 Feeder Cattle closed at $148.600, up $0.625

Oct 17 Feeder Cattle closed at $149.625, up $0.475

Nov 17 Feeder Cattle closed at $149.875, up $0.625

Lean hog futures ended the Wednesday session with mixed trade, as Oct was up 12.5 cents and back months lower. 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 11 cents lower at $80.30 in the PM report. The butt, ham, and belly primals were reported lower. The national base hog carcass was down $1.17 in the PM report at 54.74. Estimated FI hog slaughter was 1,351,000 through Wednesday, 37,000 larger than the same week in 2016.

Oct 17 Hogs closed at $59.575, up $0.125,

Dec 17 Hogs closed at $56.775, down $0.325

Feb 18 Hogs closed at $62.075, down $0.650

Cotton futures were mixed on Wednesday with back months higher, as Oct was 73 points lower. The dollar was stronger for a third consecutive day. 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 with aid from the lower prices. 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 closed at 69.980, down 73 points,

Dec 17 Cotton closed at 69.090, down 2 points

May 18 Cotton closed at 69.210, up 15 points

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