Corn trading starts the last trade day of the week 1 to 2 cents higher. At Thursday’s closing bell, front month corn futures were fractionally to 3 1/2 cents higher. The US national average cash corn price is at a 6 month high. Net corn export sales bookings from the week ending 9/10 were 1.61 MMT (63.4 mbu). That was the high end of trade estimates. Export shipments were 35 mbu, which has accumulated shipments through the first 10 days at 45.18 mbu. That is 32% higher yr/yr, and the fastest start since the 18/19 MY. New crop corn commitments are at 805.321 mbu, which is the largest start to the MY on record. Accumulated commitments are 35% of USDA’s forecasted total, compared to the 5-yr average of 25% for this date. The weekly Export Sales report also showed 121,543 MT of milo business. In a posted announcement, Chinese officials posted a notice that they will not raise the corn import TRQ, which is at 7.2 MMT for 2021. Imports outside the TRQ face a 65% tariff, but there is also precedent for later special quotas that are exempt. --- provided by Brugler Marketing & Management
Soy futures are 9 to 11 cents higher this morning, extending Thursday’s sharp advance. Soybean futures rallied double digits yesterday and closed the day with 17 1/4 cent gains for Nov. The deferred contracts were 3 3/4 to 9 1/2 cents higher. Soymeal closed the day with $8.50 to $9.60/ton gains. BO broke the pattern for the complex, at 5 points lower. USDA’s Export Sales report showed 2.457 MMT of bean bookings for the week ending 9/10. All of the Chinese business was known through the daily announcements. Speaking of those announcements, USDA has now made them 10 days in a row. Bean export commitments are at 1.188 bbu through the first 10 days of data. That is 56% of USDA’s MY total for bean exports, on near record forward bookings, compared to the 5-yr average of 34%. La Nina dryness is setting in for Brazil and Argentina. Specifically in Brazil, D3-D4 has shown up in the NW including western Mato Grosso as farmers get ready to plant 2020/21 beans.
--- provided by Brugler Marketing & Management
Wheat trading overnight has futures 2 to 5 cents higher ahead of the weekend, led by KC HRW. Wheat futures were up double digits on Thursday, led by CBT SRW. Chicago winter wheat futures closed the session up by 11 to 14 1/4 cents. KC winter wheat traded 9 3/4 to 12 1/2 cents higher. MGE spring wheat futures were up 7 1/4 to 10 cents on the day. Wheat export bookings were down 30% on the week and at the low end of estimates. With 335,727 MT booked and 564,019 MT shipped on the week, 2020/21 commitments are at 13.133 MMT (482.5 mbu). That is still up 6.8% yr/yr for week 15 of the MY. Japan bought 104,870 MT in their weekly tender with 56,765 MT U.S. origin. China announced plans to maintain the existing 9.63 MMT wheat TRQ.
--- provided by Brugler Marketing & Management
Thursday cattle trading left futures mixed to mostly lower. Losses were 37 to 62 cents in the front months, while October fats gained a nickel. Feeder cattle futures closed down by $0.57 to $1.32 on the day. The CME Feeder Cattle Index for September 16 was $141.20, back up by another 60 cents. Thursday live cattle trades in NE were at $103, and from $104-$106 for the WCB. USDA mentioned minimal dressed basis sales. The weekly Export Sales report showed 14,274 MT of beef sold on the week ending 9/10. That was down 8% wk/wk and 14% below the same week last year. Beef exports were also down, with 14,116 MT shipped on the week. Wholesale boxed beef prices dropped on Thursday, widening the Choice/Select spread to $11.66. Choice was down 33 cents to $215.05 cwt., and Select boxes fell back $1.12. FI cattle slaughter was estimated at 119k head on Thursday, with the week to date at 479,000. That is 8,000 head above Thursday of the same week last year.
--- provided by Brugler Marketing & Management
Thursday saw triple digit gains for Oct and Dec, and losses for April and June. The CME Lean Hog Index for September 15 was another $1.07 higher to $66.42. USDA’s National Average Afternoon Base Hog price for Thursday were $1.60 stronger to $62.50. In IA/MN, the base hog price was $3.03 higher to $64.44. The weekly Export Sales report had pork bookings above 50k MT for the 4th time in 2020. Weekly pork export sales ending 9/10 totaled 50,568 MT, mainly to China (71% of the total). So far for 2020, China has been the destination for 38.3% of pork shipments, with 514k of the 1.343 MMT total. USDA’s National Pork Carcass Cutout value was up $3.89 this afternoon to $87.03. The primal cuts strengthened, led by hams which were up $8.70 cwt. to $83.06. USDA estimates WTD hog slaughter is at 1.940 million head, down 14,000 from the same week last year. Carcass weights are coming in line with year ago.
--- provided by Brugler Marketing & Management
Cotton futures are cautiously 2 points lower to 6 points higher ahead of the weekend. At the closing bell on Thursday, front month cotton futures were 16 to 62 points lower. Cotton export bookings from the week ending September 10 were 519.6k RBs. That was 410% increase wk/wk and 611% above the same week last year, and the largest for any week since the week ending Jan 22 of 2015. China purchased 85% of the total with 440k. Cotton commitments to China are 37% of the total with 3.07m RBs and 7.63m RBs respectively. Chinese State Planning announced intentions to maintain the 894k MT TRQ for 2021 cotton imports. From USDA’s Daily Spot Cotton Quotations update, 5,700 bales went for an average 60.24 cents/lb on the 17th. That was up 48 points from yesterday strengthening basis. WTD sales through Wednesday on The Seam are 19,221 bales with a wtd ave price of 59.27 cents/lb. The Cotlook A index for Sept 16 fell back 45 points to 71.65 cents/lb. The AWP for cotton is1.11 cents higher to 50.88 cents/lb. That reduced the LDP to 1.12 cents.
--- provided by Brugler Marketing & Management