In the News

The next issue of Agri Marketing will include an update on Farm Broadcasting. To schedule your organization's ad contact Audrey Evans: AudreyE@AgriMarketing.com; Ph: 515-954-8589.

WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.0225	3.6500	3.5775
Soybeans	-0.1175	8.4350	9.4525
Wheat	+0.0900	5.4550	4.3450
Cattle	+2.08	108.78	105.40
Hogs	-1.35	50.43	61.40
Cotton	+0.59	82.22	70.93
Milk	+0.30	16.51	16.20
Crude Oil	+1.22	69.94	47.23

Grain futures were on the defensive early in the week, but a Friday surge in corn and wheat pushed them into positive territory. Corn stumbled to a six-week low on Tuesday before recovering, and Friday's strong close raised the prospect that the market has made a bottom in late August for the third year in a row. Short-covering ahead of a three-day weekend was supportive. Wheat futures rallied at mid-week on renewed speculation that Russia may restrict its exports, although the government dismissed that possibility on Labor Day. Soybeans remained on the defensive as crop estimates continue to grow. Some private yield estimates are now above 53 bushels per acre, which would ensure burdensome supplies throughout 2018-19. The soybean market also remains under pressure from the lack of any progress in U.S.-China trade relations. There was some positive trade news, however, as the U.S. and Mexico appeared to have a trade deal. Cotton futures remained in a sideways trading pattern, with support from fresh export sales to China, although export demand overall has been unremarkable. Rice futures were firm amid a second straight week of strong export sales and concern about harvest delays.

In the livestock complex, lean hog futures were very choppy as the market was tugged in one direction by bearish near-term cash hog fundamentals and in the other direction by news of a preliminary U.S.-Mexico trade agreement. The initial market reaction to the U.S.-Mexico deal was overdone, as it does not eliminate Mexico's tariff on U.S. pork in the near-term. It is an encouraging sign, however. China's continued problem with African Swine Fever was a supportive factor. Live cattle futures posted a bullish chart reversal on Monday off of 7-week lows, but did not see much follow-through to the upside. Packer margins for beef and pork remain very strong.

Click on the Brock logo or call 1-800-558-3431 for more info on our services.