AgriCharts Market Commentary

Corn

Corn futures closed lower. Good weather, poor outside markets, and a stronger dollar drove corn lower. Private exporters report sales of 244,696 MT of corn to Japan. Funds were heavy sellers. Cash steady to firm. Sep -2 at 5.71 ½.

Soybeans

Soybean futures closed lower. Good weather, poor outside markets, and a stronger dollar drove soybeans lower. Argentineans dropping export tariff back to 35% also seen as bearish. Private exporters report sales of 120,000 MT of beans for unknown destination. Funds were heavy sellers. Contracts are below most key technical support levels. Aug -22 ½ at 13.94 ½. Meal -3.10 at 376.10. BO -1.58 at 58.55.

Wheat

Wheat futures closed lower. A stronger dollar, weaker crude, corn and bean markets support a lower wheat market. Syria retenders for 120,000 tonnes of wheat. Jordanians bought 100,000 tonnes from Russia/Ukraine. Good weather continues to be bearish. Sep -13 ½ at 7.83 ¼. K.C. -12 at 8.12. MPLS -10 at 8.65.

Cattle

Live cattle closed higher. Broad based commodity selling brought the market lower into midday, but the market recovered after selling interest died. Increased supplies as indicated in Cold Storage, and strength in the dollar contribute to cattle’s weakness, fundamentally. Falling wholesale beef prices continued to weigh on the market. Inventory and On Feed numbers expected bullish Friday but that has already been priced into the market. Afternoon boxes are lower, choice down 2.23, at 163.59; select down 68 cents, at 157.87. Cash is bid $2 discount to last weeks’ bearish showing. Aug +55 at 98.15. Aug feeders -1.27 at 112.60.

Hogs

Lean hogs closed lower. Broad based commodity selling along with a stronger dollar and weaker grains brought the hogs lower today. Cold Storage report was bullish reading hogs as it shows end of June stocks down from a month ago. Unlike beef, pork prices are rising steadily, with today’s pork cutout at $85.32, up 1.15. That is a price level that has historically caused some consumer resistance (unadjusted for inflation/weaker dollar). Aug -35 at 78.40.

Cotton

Cotton closed higher. Cotton fielded a rally despite the weakness in outside markets. Crude, grains, and gold were lower with a stronger dollar. The reversal comes as spec may be covering shorts. Fundamentals may prove a bit of the action as Hurricane Dolly makes landfall on the Texas border. Oct +1.40 at 70.16.

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: www.bruglermktg.com