Ag Market Commentary

Corn futures settled 3 3/4 to 4 1/2 cents higher on Friday. This morning’s FAS Export Sales report indicated that 1.007 MMT of 18/19 corn was sold for export in the week of 10/4, edging into the range of estimate. That was down 29.65% wk/wk and 36.25% lower than the same week in 2017. Mexico was the lead buyer of 354,600 MT, with sales to Japan tallying 281,700 MT and reductions of 267,100 MT to Unknown. This afternoon’s CFTC report indicated spec funds trimmed their net short position in corn futures and options by 23,732 contracts in the reporting week ending October 9, leaving them net short 34,032 contracts.

Dec 18 Corn closed at $3.73 3/4, up 4 1/2 cents,

Mar 19 Corn closed at $3.85 3/4, up 4 1/2 cents,

May 19 Corn closed at $3.92 3/4, up 4 1/4 cents

Jul 19 Corn closed at $3.97 3/4, up 3 3/4 cents

--provided by Brugler Marketing & Management, Call (402) 289-2330



Soybean futures settled mostly 9 cents higher. Nearby soy meal is down 30 cents/ton, with soy oil UNCH. US Soybean export sales in the week of 10/4 fell short of expectations at 439,651 MT. That was just 30.5% of last week’s total and down 75% from the same week last year. Net reductions of 187,899 MT were reported for China. Soy meal sales for 18/19 were 348,232 MT for that week that marked the start of the new MY, with a total of 664,996 MT carried over from 17/18. Soy Oil Sales totaled 11,439 MT for the first week of the new MY, with 65,029 MT carried over.

Nov 18 Soybeans closed at $8.67 1/2, up 9 1/4 cents,

Jan 19 Soybeans closed at $8.81 3/4, up 9 1/4 cents,

Mar 19 Soybeans closed at $8.94 1/2, up 9 1/2 cents,

May 19 Soybeans closed at $9.07 3/4, up 9 1/4 cents,

Oct 18 Soybean Meal closed at $312.40, down $0.40,

Oct 18 Soybean Oil closed at $29.04, up $0.31

--Call Brugler Marketing & Management @ (402) 289-2330 with questions or news tips.



Wheat futures settled 6 to 10 1/2 cents higher in the three markets, led by KC HRW and planting concerns due to wet weather. Friday’s USDA Export Sales report indicated that 18/19 sales for the week of 10/4 were tallied at 339,022 MT. That was within trade estimates and nearly double this week last year but still down 22.1% wk/wk. Along with raising the 2018/19 production total on Thursday, USDA trimmed feed and residual by 10 mbu and left exports UNCH at 1.025 bbu. Export commitments for wheat are now just 42% of that full year projection vs the 61% average for this date. The global stocks/use ratio is tightening, so USDA analysts are sticking to their guns on exports.

Dec 18 CBOT Wheat closed at $5.17 1/4, up 9 1/4 cents,

Dec 18 KCBT Wheat closed at $5.24 1/4, up 10 1/2 cents,

Dec 18 MGEX Wheat closed at $5.96, up 6 1/2 cents

--provided by Brugler Marketing & Management (402) 289-2330



Live cattle futures closed 30 to 85 cents lower in the nearby contracts. Feeder cattle futures were down $1.27 to $2.12 on rising feed costs. The CME feeder cattle index was down a penny on October 10 at $158.37. Wholesale beef prices were mixed this week. Choice boxes were 54 cents lower (-0.3%) while Select rose 54 cents (+0.3%). Weekly beef production was down 0.4% from the previous week but 3.2% larger than the same week a year ago. Weekly FI slaughter was estimated at 639,000 head, which would be 4,000 below last week. US Beef export sales in the week of 10/4 totaled 13,305 MT, up 2.3% from the same week last year. Exports in that week totaled a MY high 21,265 MT.

Oct 18 Cattle closed at $112.325, down $0.300,

Dec 18 Cattle closed at $116.175, down $0.600,

Feb 19 Cattle closed at $120.400, down $0.850,

Oct 18 Feeder Cattle closed at $154.700, down $2.025

Nov 18 Feeder Cattle closed at $154.625, down $2.125

Jan 19 Feeder Cattle closed at $149.750, down $1.750

--provided by Brugler Marketing & Management, Call (402) 289-2330



Lean hog futures were 57 cents higher to $1.07 lower, with contracts past December in the minus column. The CME Lean Hog Index was down 6 on October 10 @ $69.28. The USDA pork carcass cutout value was $1.43 higher in the afternoon report at $80.04. The national base hog carcass value was 24 cents lower on Friday at a weighted average of $61.45. Weekly FI hog slaughter was estimated at 2.489 million head. That was down 14,000 head from last week and 23,000 head below the same week last year. Export sales of pork in the week that ended 10/4 totaled 16,708 MT, 5.3% above the same time in 2017. Shipments recorded by USDA were the largest since May at 24,813 MT.

Oct 18 Hogs closed at $68.750, up $0.075,

Dec 18 Hogs closed at $55.000, up $0.575

Feb 19 Hogs closed at $62.225, down $0.200



Cotton futures are showing triple digit gains today. Friday’s edition of the Export Sales report listed 97,997 RB in 18/19 upland cotton sales during the week of 10/4. That was well above the week prior but down 36.54% from the same time last year. Vietnam purchased 70,000 RB, with 73,967 RB reported in net reduction for China. Sales for 19/20 were tallied at 142,912 RB, with 136,400 RB sold to China. The 18/19 Balance sheet saw a 300,000 bale reduction to exports, now at 15.5 million bales. The average farm price projected by the USDA was at 69-77 cents and the midpoint down 2 cents to 73. The Cotton Ginnings report showed that 1.287 million bales had been ginned as of 10/1, 3% larger than the same time last year. The Cotlook A index down 20 points from the previous day at 86.15 cents/lb on October 11. The USDA weekly AWP was updated to 67.73 cents/lb.

Dec 18 Cotton closed at 78.370, up 156 points,

Mar 19 Cotton closed at 79.550, up 138 points

May 19 Cotton closed at 80.410, up 138 points

--provided by Brugler Marketing & Management (402) 289-2330






Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com

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