Ag Market Commentary

At Friday’s closing bell corn futures were 2 3/4 to 4 cents higher. On the week, Dec corn rallied 2.71% on a dime advance. Chinese importers booked another 210,000 MT of U.S. corn for 2020/21 delivery, announced via the daily reporting system. The US national average cash corn price is at a 6 month high. The CFTC weekly data release showed corn spec traders were 25,062 contracts more net long than the previous week, at 58,556 contracts on September 15. That came via short covering and new buying. Managed money OI was down 5,608 contracts. Commercial OI was up 61,858 contracts on the week, as the net short grew 22,952 contracts.

Dec 20 Corn closed at $3.78 1/2, up 3 1/4 cents,

Mar 21 Corn closed at $3.87 1/2, up 3 1/2 cents,

May 21 Corn closed at $3.92 3/4, up 4 cents,

Jul 21 Corn closed at $3.95 1/2, up 3 3/4 cents,

--- provided by Brugler Marketing & Management

Soy futures close the week comfortably in the black. At the closing bell, soybeans were 10 1/4 to 16 cents higher. Nov beans were 4.77% higher from Fri-Fri on a 47 cent rally. Soymeal futures closed the day with $6.5 to $7/ton gains. October soymeal futures closed 5.47% higher from Friday to Friday. Bean oil rallied 4.82% on the week, and closed the Friday session with 19 to 32 point gains. Chinese importers booked 132,000 MT of U.S. soybeans for 2020/21 delivery. USDA also announced a 100k MT sale of soymeal to unknown on Friday. The weekly Commitment of Traders report had soybean spec traders at 191,774 contracts net long. That was a 10.3% increase on the week on net new buying. Commercial short paper increased 33,857 contracts to the largest on record @ 625.9k. That left commercials at the 8th strongest net short on record of 324,798 contracts. In Soybean meal, managed money extended their net long 11,578 contracts to 43,697. Bean oil spec traders were reported at 94,564 contracts net long on 9/15.

Nov 20 Soybeans closed at $10.43 1/2, up 15 cents,

Jan 21 Soybeans closed at $10.47 1/4, up 16 cents,

Mar 21 Soybeans closed at $10.38, up 14 1/4 cents,

May 21 Soybeans closed at $10.30 1/2, up 11 1/2 cents,

Oct 20 Soybean Meal closed at $337.40, up $7.00

Oct 20 Soybean Oil closed at $35.23, up $0.32

--- provided by Brugler Marketing & Management

On Friday, front month wheat futures closed double digits in the black. CBT SRW wheat futures closed 14 1/4 to 18 3/4 cents higher, which for Dec added to a 33 cent move for the week. KC HRW futures were 15 1/2 to 16 3/4 cents higher at the close. KC wheat futures were the strongest gainer on the week, rallying 7% from Friday to Friday. MGE HRS wheat was 3.57% higher on the week, helped by 9 3/4 to 10 cent Friday gains. The CoT report showed managed money was 15,112 contracts net long in CBT wheat. Long liquidation with new selling reduced the net long 35% on the week (through Tuesday). In KC HRW, spec traders were 10,192 contracts net long. That was a 1,269 contract increase wk/wk. Managed money open interest increased 845 contracts in MGE wheat reducing the net short to 3,008 contracts. That is the closest they have been to being bullish since 2018.

Dec 20 CBOT Wheat closed at $5.75, up 18 3/4 cents,

Dec 20 KCBT Wheat closed at $5.04 1/4, up 16 3/4 cents,

Dec 20 MGEX Wheat closed at $5.51 1/4, up 9 3/4 cents,

--- provided by Brugler Marketing & Management

At the closing bell, front month fat cattle futures closed 32 to 57 cents higher. October futures closed the week on a 1.73% gain from Friday to Friday. Feeders traded 32 to 97 cents higher on the day, and Sept feeders were up 87 cents on the week. The CME Feeder Cattle Index for September 17 was $142.18, up 97 cents. Cash trades for the week have been $103-$105. Dressed sales have been $163-$164 with some higher grades at $165, that is $2-$3 higher than last week. Friday boxed beef prices were higher after 11 days of lower prices. Choice boxes recovered 59 cents, at $215.64 cwt. Select boxes recovered 55 cents, for a Chc/Sel spread of $11.70. The weekly CFTC report showed short covering from cattle spec traders. On 9/15 managed money was 59,620 contracts net long. Feeder cattle spec traders were 1,683 contracts less net long on the week, to 1,509. USDA estimates the week’s FI cattle slaughter at 645k head through Saturday. That is 16,000 head below the same week last year on a weak Saturday estimate. YTD cattle slaughter trails last year’s pace by 4.5% @22.847 million.

Oct 20 Cattle closed at $107.350, up $0.575,

Dec 20 Cattle closed at $111.850, up $0.525,

Feb 21 Cattle closed at $116.075, up $0.325,

Sep 20 Feeder Cattle closed at $140.875, up $0.950

Oct 20 Feeder Cattle closed at $142.425, up $0.975

Nov 20 Feeder Cattle closed at $142.525, up $0.325

--- provided by Brugler Marketing & Management

Friday lean hog trading left futures on both sides of UNCH. Feb, April, and June contracts gained 32 to 35 cents; while Oct, Dec, and May ’21 were down 2 to 10. October futures ended the week 7 cents lower. The Lean Hog Index from CME was up another $1.42 to $67.84 on September 16. USDA’s National Average Base Hog price Friday fell back $2.35 to $60.26. USDA’s National Pork Carcass Cutout value was $87.53 in the afternoon report, 50 cents higher on mixed primals. CFTC data showed managed money was 42,472 contracts net long on Tuesday the 15th. That was up 8,856 contracts from the week earlier on short covering. USDA estimates the week’s hog slaughter at 2.587 million head. That is down 14,000 from the same week last year, but YTD slaughter is up 1.096 million head yr/yr. Carcass weights are coming in line with year ago.

Oct 20 Hogs closed at $66.500, down $0.025,

Dec 20 Hogs closed at $63.525, down $0.100

Feb 21 Hogs closed at $68.550, up $0.350

--- provided by Brugler Marketing & Management

Despite the late week slides lower, Dec futures were 85 points above last Friday’s close. On Friday, the front month futures ended the session down 17 to 21 points. Damage from hurricane Sally is not yet known, but some reports show seeds sprouting in the open bolls (DTN). The CoT report showed managed money’s net long was 3,364 contracts stronger wk/wk on short covering. On 9/15, managed money was 49,828 contracts net long and commercials were 111,896 contracts net short. Thursday sales on The Seam were 951 bales at 48.86 cents/lb. WTD sales through Thursday on The Seam were 20,172 bales with a wtd ave price of 58.78 cents/lb. The Cotlook A index for Sept 17 was firm at 71.65 cents/lb. The AWP for cotton was raised 1.11 cents for the week to 50.88 cents/lb. That reduced the LDP to 1.12 cents.

Oct 20 Cotton closed at 64.16, down 19 points,

Dec 20 Cotton closed at 65.66, down 19 points

Mar 21 Cotton closed at 66.58, down 21 points

May 21 Cotton closed at 67.35, down 20 points

--- provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

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