AgriCharts Market Commentary

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Corn

May 26, 2017

Corn futures closed the day 3 1/2 to 5 cents higher, as we head into the holiday weekend with some uncertainty about replanting and crop conditions in general. Markets will be open again on Tuesday. Over the past two weeks, corn futures have increased just 3 1/4 cents. As of Tuesday, managed money had a CFTC net short position of 176,503 contracts in corn futures and options trading. That is a decrease of 27,406 contracts since the previous week. China sold 233,660 MT of 2011 and 2012 corn from state reserves at an auction on Friday. They also sold 2.1 MMT of the 2.3 MMT 2013 corn offered at the auction, in addition to sales 3.45 MMT of 4.7 MMT 2013 corn offered on Thursday.

Jul 17 Corn closed at $3.74 1/4, up 5 cents,

Sep 17 Corn closed at $3.81 3/4, up 4 3/4 cents,

Dec 17 Corn closed at $3.92 1/2, up 5 cents

Mar 18 Corn closed at $4.02 1/4, up 4 3/4 cents

Soybeans

May 26, 2017

Soybean futures were mostly 7 to 13 cents lower on Friday. July 17 soybeans lost 2.78% on the week that saw the continuous front month chart hit a 13 1/2 month low. July 17 meal was down $2.90, with soy oil 44 points lower in the nearby month. Thoughts of possible higher soybean acreage and more Argentine and Brazilian selling weighed on prices. The Argentine peso weakened. The Crop Progress report will be delayed until Tuesday due to the Memorial Day holiday. The CFTC Commitments of Traders report showed spec traders adding 25,832 contracts to their net short position in soybean futures and options. Their net short position of 62,355 contracts is the largest recorded short position in 15 months. This week’s Canadian canola crush was estimated at 159,098 MT, 6.2% larger than the previous week.

Jul 17 Soybeans closed at $9.26 1/2, down 13 cents,

Aug 17 Soybeans closed at $9.29 1/2, down 12 cents,

Sep 17 Soybeans closed at $9.27 3/4, down 11 cents,

Jan 18 Soybeans closed at $9.36 3/4, down 10 cents,

Jul 17 Soybean Meal closed at $301.80, down $2.90,

Jul 17 Soybean Oil closed at $31.60, down $0.44

Wheat

May 26, 2017

Wheat futures settled higher to end the week. CBT was the strongest with gains of 4 to 7 1/2 cents. KC was 4 3/4 to 6 1/4 cents higher, as it was the only exchange to lose ground in the front month since last Friday. MPLS was steady to 6 1/2 cents in the green. Trade reports are estimating 20% of HRW wheat in TX has been harvested, with OK at 3%. We’ll get the NASS counts on Tuesday. The Friday afternoon COT report showed spec funds lowering their net short position by 8,174 contracts to 113,211 contracts in CBT wheat futures and options trading. Japan purchased 79,930 MT of US wheat in their weekly tender on Thursday.

Jul 17 CBOT Wheat closed at $4.38 1/4, up 7 1/2 cents,

Jul 17 KCBT Wheat closed at $4.37 1/2, up 6 1/4 cents,

Jul 17 MGEX Wheat closed at $5.68 3/4, up 6 1/2 cents

Cattle

May 26, 2017

Live cattle futures finished the week $1.225 to $2.85 lower, coming off a bearish COF report. Feeder cattle futures were also down $3.525 to $4.30 on the day, as nearby August lost 2.33$ on the week. The CME feeder cattle index was up 80 cents on May 25, at $143.89.Wholesale beef prices were both lower in the Friday afternoon report, with choice boxes down 51 cents averaging $245.60, and select down 53 cents, with an average of $218.45. Most cash trade was in the $132-$132.50 range this week, $2-$3 lower than last week. Estimated FI slaughter including Saturday is 613,000 head, up 11,000 head from the previous week and 27,000 head larger than the same week last year. The Cattle on Feed report released Friday morning, showed COF for May increasing 1.99% yr/yr to 10.998 million head. Placements in April were reported at 11.06% larger than the same month in 2016 at 1.848 million head, with marketings 2.71 above last year at 1.703 million head. All were higher than most traders had been expecting.

Jun 17 Cattle closed at $122.700, down $1.225,

Aug 17 Cattle closed at $118.950, down $2.450,

Oct 17 Cattle closed at $115.100, down $2.850,

Aug 17 Feeder Cattle closed at $146.950, down $4.175

Sep 17 Feeder Cattle closed at $146.750, down $4.225

Oct 17 Feeder Cattle closed at $145.775, down $4.275

Lean Hogs

May 26, 2017

Lean hogs ended the week with gains of 75 cents to $1.325 higher in the nearby contracts, as June gained 2.92% since last Friday. The CME Lean Hog Index for 5/24 was up another 18 cents to $76.25.The USDA pork carcass cutout value was 2 cents lower in the afternoon report, with an average of $90.28. The picnic, rib, and ham were all lower. The national base hog carcass price was 75 cents lower with a weighted average of $71.01. Prices in the WCB region was $1.12 lower, with the IA/MN region down 99 cents. WTD estimated FI hog slaughter through Saturday is 2.192 million head, 57,000 fewer than last week, and 8,000 head above the same time a year ago. Managed money added 15,195 contracts to their CFTC net long position of 48,750 contracts in Lean hog futures and options.

Jun 17 Hogs closed at $81.825, up $0.875,

Jul 17 Hogs closed at $81.900, up $1.325

Aug 17 Hogs closed at $81.300, up $0.750

Cotton

May 26, 2017

Cotton futures were mostly lower on Friday, with October higher on low volume. July 17 showed a loss of 2.97% over the week. There was a little pressure from a US dollar, as it was up 149 points. The new AWP (average world price) is down 3.19 cents from last week at 72.44 cents/lb. It is valid from today until next Thursday. The COT report had spec funds cutting their CFTC net long position by 9,178 contracts in cotton futures and options as of Tuesday. On Friday, China sold just 46.49% of the near 30,000 MT offered at an auction of state cotton reserves. The Cotlook A index for May 25 was at 87.25 cents/lb, up 25 points from the previous day.

Jul 17 Cotton closed at 77.090, down 7 points,

Oct 17 Cotton closed at 75.180, up 69 points

Mar 18 Cotton closed at 72.630, down 36 points


Market Commentary provided by:

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