AgriCharts Market Commentary

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Corn

Corn futures are currently fractionally to 1 1/2 cents lower on Wednesday. Showers were moving across NE into MN and IA overnight and this morning. This morning’s EIA report showed daily ethanol production for the week of June 23 25,000 barrels per day higher than the previous week at 1.015 million bpd. That is the largest wk/wk increase since the last week in October 2016. Ethanol stocks also shrank to the lowest point in almost five months to 21.838 million barrels. The East Coast and the Rockies were the only regions to see an increase. Estimates ahead of tomorrow’s export sales report are running 350,000-550,000 MT for old crop, with 100,000-300,000 MT for new crop weekly sales.

Jul 17 Corn is at $3.57 3/4, down 1 1/2 cents,

Sep 17 Corn is at $3.66 3/4, down 1 cent,

Dec 17 Corn is at $3.76 3/4, down 3/4 cent

Mar 18 Corn is at $3.86 3/4, down 3/4 cent

Soybeans

Soybean futures are trading 1 3/4 to 2 cents in the green at midday. July 17 soy meal is up 40 cents, with soy oil down 4 points in the front month. Traders are expecting 200,000-400,000 MT for old crop sales in Thursday’s export sales report, as new crop is projected at 100,000-300,000 MT. Total soy meal sales are estimated at 50,000-200,000 MT, with soy oil in the 5,000-29,000 MT range. Abiove updated their 2016/17 Brazilian production estimate to 113.2 MMT, 0.7 MMT above their previous estimate. They also increased their Brazil annual export projection to 63 MMT, up 1.3 MMT. The Stats Canada report is expected to show Canola acreage at 22.2 million acres this Thursday, down from 22.39 in April. Soybean acreage is projected at 7 million acres by analysts, up from 6.96 in the April report.

Jul 17 Soybeans are at $9.13 1/4, up 2 cents,

Aug 17 Soybeans are at $9.17 3/4, up 1 3/4 cents,

Sep 17 Soybeans are at $9.19 1/4, up 2 cents,

Nov 17 Soybeans are at $9.19 1/4, up 1 3/4 cents,

Jul 17 Soybean Meal is at $294.40, up $0.40

Jul 17 Soybean Oil is at $32.04, down $0.04

Wheat

Wheat futures are showing gains of 2 to 4 1/2 cents in the KC ad CBT contracts today, as MPLS is carrying the weight, up 23 cents in nearby July and hitting new multi-year highs. Premiums for HRW wheat were running $1.68 to $1.78 above board price for 12% protein last night. A few producers in SW KS are reporting that yields are down from last year. Elevators are firming basis in order to capture the grain for storage hedges. The trade is projecting 2017/18 export sales will be 350,000-550,000 in Thursday’s export sales report. All wheat acreage in Canada is projected to be 22.7 million acres in the upcoming report, down from Stats Canada’s estimates of 23.18 million acres in April.

Jul 17 CBOT Wheat is at $4.57 1/2, up 4 1/4 cents,

Jul 17 KCBT Wheat is at $4.61 3/4, up 4 1/2 cents,

Jul 17 MGEX Wheat is at $7.04 1/2, up 23 cents

Cattle

Live cattle futures are trading 57.5 to 97.5 cents in the red at midday. Feeder cattle futures are also down 95 cents to$ 1.575 in the nearby contracts. The CME feeder cattle index was up 58 cents on June 26 at $146.42. Wholesale beef prices were sharply lower in the Wednesday morning report, with choice boxes down $4.19 at $229.72. Select was $2.07 lower, with an average of $213.19. The Ch/Se spread is now down to $16.53. Estimated FI cattle slaughter through Tuesday was 235,000 head, 4,000 above last week and 10,000 greater than last year. Trade on the FCE this morning showed sales of $119-$120 on 3 lots, as 480 of the 2,554 head were sold. The average price on all lots sold was $119.68.

Jun 17 Cattle are at $119.025, down $0.575,

Aug 17 Cattle are at $114.050, down $0.975,

Oct 17 Cattle are at $112.025, down $0.750,

Aug 17 Feeder Cattle are at $143.300, down $1.575

Sep 17 Feeder Cattle are at $143.150, down $1.375

Oct 17 Feeder Cattle are at $142.025, down $0.950

Lean Hogs

Lean hog futures up 80 cents to $1.00 at midday. The CME Lean Hog Index for 6/26 was up another 48 cents to $91.10. The USDA pork carcass cutout value was up $1.76 in the morning report, with a weighted average of $104.07. All primal cuts except the ham were higher. The national base hog carcass price was 81 cents lower with a weighted average of $85.00 in the a.m. report. FI hog slaughter was estimated at 871,000 head through Tuesday, 16,000 more than the previous week and 17,000 head above last year.Ahead of tomorrow’s USDA Hogs and Pigs report analysts are expecting the March-May pig crop to rise 3% over last year, with pigs per litter 1.3% larger.

Jul 17 Hogs are at $87.350, up $0.875,

Aug 17 Hogs are at $79.500, up $0.950

Oct 17 Hogs are at $68.125, up $0.475

Cotton

Cotton futures are steady to 32 points lower on Wednesday, with low volume being shown in the front two contracts. The US dollar is lower again today, down 397 points at the moment. China sold 19,700 MT of cotton from state reserves on Wednesday, totaling 66.23% of the total 29,800 MT offered. The Cotlook A index for June 26 was 25 points higher at 83.20 cents/lb. The certified stocks level dropped another 63,131 bales to 314,986 bales, after yesterday’s 111,040 bale plunge.

Jul 17 Cotton is at 74.44, unch,

Oct 17 Cotton is at 69.65, down 10 points

Dec 17 Cotton is at 67.58, down 13 points

Mar 18 Cotton is at 67.200, down 32 points


Market Commentary provided by:

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