The new week begins with front month corn futures 2 to 3 cents lower. Last week ended on light new buying, with preliminary OI data up 1,848 contracts on Friday. On Friday futures were 3/4 to 1 3/4 cents higher, but after a week of losses Dec futures were still 3.5% in the red from Friday to Friday. In general, the Midwest forecasts lean cooler and drier than normal for the next two weeks. NASS’s crop progress report is expected to show between 16 and 18% of the crop has been harvested. The weekly CFTC Commitment of Traders update this afternoon had managed money at 95,912 contracts net long for corn on 9/22. That was a 37,356 contract increase to their net position wk/wk on 5,102 contracts lower OI. Commercials extended their net short 35,471 contracts to 299,308.
--- provided by Brugler Marketing & Management
After the weekend break, soybean futures are trading both sides of UNCH this morning. On Friday, bean trading left futures 2 1/2 to 5 cents in the black. Preliminary open interest rose only 379 contracts, so most of the activity was “rotation of ownership”. For the week, however, Nov beans were down 3.93%. Soymeal futures closed the session up $1.50 to $3.10/ton. Bean oil futures were 38 to 48 points higher at the closing bell, but that couldn’t overcome the loss from M-Th. BO futures were down 2.39 cents/lb from Friday to Friday. Soybean spec traders were 211,143 contracts net long in the CFTC report. That was up 19,369 contracts from September 15 to 9/22. In soymeal, spec traders were 21,551 contracts more net long to 65,248 contracts. Managed money funds were net buyers of bean oil on the week ending 9/22, expanding the net long to over 100k contracts.
--- provided by Brugler Marketing & Management
Wheat futures are 2 to 5 cents lower to start the new week’s trading, with KC HRW the weakest. Wheat traded lower on Friday. KC HRW futures were down the most closing 7 1/2 to 8 1/4 cents lower. On the week, however, it was CBT wheat down the most. SRW futures were down 31 cents from Friday to Friday. From Friday to Friday, December HRW was down 29 cents. MGE spring wheat futures ended Friday session down 2 3/4 to 5 cents. Dec HRS futures fell 21 1/2 cents last week. CFTC reported managed money was net long 14,543 contracts for SRW on 9/22. That was a 569 contract reduction to their net position on a 3,193 contract boost to OI. For KC wheat, spec traders increased their net long 8,271 contracts during the reporting week, to 18,463. Spring wheat spec traders were still net short, the longest lasting fund net short on record is now 107 consecutive weeks.
--- provided by Brugler Marketing & Management
Pre-report positioning left futures down $0.45 to $1.05 on Friday. Some early pressure is expected in February and other contracts due to the larger than expected placements numbers. Feeder cattle futures closed $1.90 to $2.07 in the red. The 9/24 Feeder Cattle Index from CME was down $0.36 to $142.23. The week’s range for cash cattle was $102-$107 with the bulk at $105. USDA’s Cattle on Feed report showed 11.394 million head of cattle in the 1,000+ capacity feedlots as of September 1. That was 3.75% higher yr/yr, vs. trade ideas of a 3.4% increase. August saw 1.892 million head of cattle marketed, compared to 1.953 last year and the average trade guess of 1.887. August placements were up 9.18% yr/yr, with 2.057m head. Traders were anticipating a 5.9% increase. Wholesale boxed beef price were mixed on Friday, widening the spread to $12.36. Choice boxes were quoted up $1.86 cwt. and Select boxes were 76 cents lower. USDA’s estimate for FI cattle slaughter on the week through Saturday is 651k head. That is 1k head above last year for the week, but still down 4.3% YTD.
--- provided by Brugler Marketing & Management
Traders responded to the Hogs and Pigs report with a triple digit gain on Friday. For October futures that resulted in a 7.89% gain for the week. The CME Lean Hog Index was $73.70 on 9/23, up another $0.81. USDA’s National Average Afternoon Base Hog price for Friday was 14 cents stronger @ $64.74. The regional WCB base hog price was $64.75, compared to $64.73 for the ECB. USDA’s National Pork Carcass Cutout value was $0.71 weaker to $91.32 on Friday. CFTC reported managed money at 43,580 contracts net long in lean hogs on September 22. That was a 1,108 contract stronger net long on the week. USDA estimated the week’s FI hog slaughter at 2.627 million head through Saturday. That is 14,000 head lower yr/yr for the week, but YTD slaughter outpaces ’19 by 1.2%.
--- provided by Brugler Marketing & Management
Cotton futures are 14 to 22 points higher this morning. They ended the Friday session up 36 to 69 points. For Dec, the week’s move was plus 29 points. Revived hopes for a stimulus bill out of Washington boosted equities and spending ideas. The weekly CoT update had Cotton spec traders 1,483 contracts more net long, at 51,311 as of 9/22. New buying was noted as managed money open interest increased 3,349 contracts wk/wk. WTD cash cotton sales on The Seam were 10,118 bales at a wtd average price of 53.91 cents/lb. Spot sales from USDA’s Weekly Cotton Market Review were 11,437 bales at an average price of 59.82 cents. LW sales were 33,704 bales for 59.84 cents. The Cotlook A index was 25 points lower for Sept 24, at 70.60 c/lb. The AWP for cotton is now 50.45 cents/lb. FSA increased this week’s LDP to 1.55 cents.