AgriCharts Market Commentary

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Corn

Corn futures closed the day with most contracts steady to 2 1/2 cents higher, while Sept saw losses of 5 1/2 cents on the week. The Friday afternoon Commitment of Traders report revealed the managed money adding another 2,145 contracts to their net longs this week, to 106,815 contracts. On Friday, China sold 1.51 MMT of the 3.66 MMT of corn offered from state reserves. The Buenos Aires Grain Exchange estimates that 62.7% of the Argentine crop, projected at 39 MMT, is harvested - up from 59.4% last week. AgRural updated their projection for the second season corn crop in Brazil to 63.34 MMT, and estimated that 63% of that crop was harvested.

Sep 17 Corn closed at $3.74 1/4, unch,

Dec 17 Corn closed at $3.88, up 1/4 cent,

Mar 18 Corn closed at $3.99 3/4, up 1/2 cent

May 18 Corn closed at $4.05, up 1/2 cent

Soybeans

Soybean futures finished the day 2 1/2 to 6 cents in the green, as Aug saw 8 1/4 cents losses since last Friday’s close. Front month soy meal was down $1.30/ton, with Aug 17 soy oil up 76 points. Spec funds added another 12,534 contracts to their net long in soybeans futures and options trading, bringing the total to 50,885 contracts as of Tuesday evening. The International Grains Council dropped their estimated 2017/18 world soybean production 3 MMT to 345 MMT. Reports are showing that analysts are estimating soybean stocks in Argentina at 30 MMT.

Aug 17 Soybeans closed at $10.00 3/4, up 6 cents,

Sep 17 Soybeans closed at $10.06, up 6 cents,

Nov 17 Soybeans closed at $10.13, up 5 1/2 cents,

Mar 18 Soybeans closed at $10.25 1/4, up 5 1/2 cents,

Aug 17 Soybean Meal closed at $321.00, down $1.30,

Aug 17 Soybean Oil closed at $34.61, up $0.76

Wheat

Wheat futures settled Friday with most CBT contracts slightly higher, as MPLS and KC were mixed with nearby contracts in the green. On the week, CBT was down 3.66% in the Sep contract, with Sep KC 3.02% lower and MPLS was down 3.3%. This week’s Commitment of Traders report showed the reportable spec traders subtracting from their net long in CBT wheat by another 8,076 contracts for the week ending 7/25. They also reduced 10,263 contracts from their net long in KC HRW. The BAGE projects that Argentina has planted 92% of the estimated 13.34 million acres of wheat. Frances AgriMer estimates that the soft wheat crop is 85% harvested, compared to last week’s 62%.

Sep 17 CBOT Wheat closed at $4.81, up 1 1/4 cents,

Sep 17 KCBT Wheat closed at $4.81, unch,

Sep 17 MGEX Wheat closed at $7.40 1/2, up 4 cents

Cattle

Live cattle futures posted losses of 32.5 cents to $1.40 on Friday, as Aug was 3.03% lower on the week. Feeder cattle futures were down 22.5 cents to $1.85 in most contracts, with Aug losing 4.51% since last Friday. The CME feeder cattle index was $1.94 from the previous day at $149.36 on July 27. Wholesale beef prices were mixed in the afternoon report, with choice boxes down 21 cents at $206.22 and select 16 cents higher at $196.82. Estimated FI cattle slaughter including Saturday is at 627,000 head, 5,000 head above last week and 47,000 head larger than the same week last year. Cash cattle exchanged hand at around $117-118 this week on a live basis, with dressed mainly at $188. Japan announced on Friday that they temporarily raised the import tariff on frozen beef from 38.5% to 50% on countries they do not currently have trade deals with. This was done in order to make domestic producers more competitive with the international market. Data from the CFTC on Friday showed spec traders chipping another 2,593 contracts from their net long this week, down to 110,702 contracts.

Aug 17 Cattle closed at $112.900, down $1.400,

Oct 17 Cattle closed at $112.425, down $1.150,

Dec 17 Cattle closed at $113.400, down $1.000,

Aug 17 Feeder Cattle closed at $146.050, down $1.775

Sep 17 Feeder Cattle closed at $147.100, down $1.850

Oct 17 Feeder Cattle closed at $146.850, down $1.400

Lean Hogs

Lean hog futures were mixed on Friday, with nearby contracts lower and deferred contracts higher. The CME Lean Hog Index for 7/26 was 45 cents lower than the previous day at $89.39. The USDA pork carcass cutout value was $1.19 lower in the Friday afternoon report, with a weighted average of $98.75. The butt and picnic were the only cuts reported higher. The national base hog carcass price was $1.03 lower with a weighted average of $80.98 in the p.m. report. Week to date FI hog slaughter is estimated at 2,239,000 head through Saturday, 26,000 head more than the previous week and 47,000 over the same week in 2016. CFTC showed the managed money longs taking another 2,597 contracts off their net long after to a net position of 77,302 contracts.

Aug 17 Hogs closed at $81.400, down $0.850,

Oct 17 Hogs closed at $66.500, down $1.175

Dec 17 Hogs closed at $61.050, down $0.750

Cotton

Cotton futures ended Friday trade with 9 to 40 point losses in most contracts, as OCT was 1.56% higher on the week. The CFTC Commitment of Traders report showed the managed money adding 1,292 contracts to their net long in cotton futures and options. They are now at +18,655 contracts, after 9 straight weeks of lowering that position. The Cotlook A index for July 27 was 50 points lower at 84.50 cents/lb. The USDA cotton AWP now through August 3 is 66.29 cents/pound. China sold 14,200 MT of the 29,900 MT of cotton offered at an auction of state reserves on Friday. On the week, they sold 81,500 MT of the total 148,000 MT offered.

Oct 17 Cotton closed at 70.220, down 28 points,

Dec 17 Cotton closed at 68.800, down 9 points

May 18 Cotton closed at 68.580, down 29 points


Market Commentary provided by:

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