AgriCharts Market Commentary

Corn

Corn futures experienced `choppy trade throughout the day but closed slightly higher. Traders are hesitant to jump in with both feet with out checking the water. Relatively light trade is occurring so far this week as positions become consolidated and square ahead of the extended holiday weekend. Corn felt pressure from declining wheat prices, but was supported by higher crude oil and weakness in the US dollar. Dry weather remains as a concern, but radar images showed possibilities of rain in much of IA. The Gustav storm continues to threaten the Gulf and pushes crude oil higher. Sep +2 ¼ at 5.77 ½

Soybeans

Soybeans closed mixed on Wednesday as nearby contracts were supported by strength in crude oil. Soybeans traded choppy all day but nearby months were underpinned by crude oil approaching the $120/barrel mark and a softer US dollar. Gains were limited though, as wheat “fell out of bed” for a second straight day down and weather forecasts increasing the percentage of rainfall in the Midwest. Fundamentals remain fairly bullish as tight supply remains, and uncertainty in Argentinean farmers as they have been erratic protestors of export tariffs over the past few months. Sep +10 ½ at 13.48 Meal +8 at 368.00 BO +3 at 54.22

Wheat

Wheat futures slumped lower for the second consecutive day on bearish technical signals. Wheat contracts broke lower as they pushed through key support levels. Funds sold an estimated 4,000 contracts. Forecasts continue to show precipitation in key wheat producing areas in Australia and Argentina, much of those crops are in dire need of a drink. Turkey and Bangladesh tender shipment of 250,000 and 100,000 tonnes respectfully. CHI -27 ¾ at 8.02 ¾ KC -25 ¾ at 8.40 MPLS -20 at 8.76

Cattle

Cattle futures posted some pretty harsh losses on Wednesday despite strength in afternoon cut out prices. Hogs were limit down in several months triggering selling into cattle contracts. . Limit down in LH hog contracts prompted spillover selling in cattle on Wednesday. There were 6 deliveries posted against the Aug contract which expires on Friday. Little cash cattle are trading in the country as of Wednesday, feeders are asking around $101, and expect trade to be a $1 higher than last week but packer are said to have enough cattle bought to last them through the weekend. Afternoon Boxes: Choice +42 at $162.04 Select +89 at $155.31. Aug -107 at 100.62 Aug FC -7 at 112.95

Hogs

Lean Hog futures are down the 300 point limit in all contracts thought July of ’09. Weaker cash and a fall out in pork cut out prices weigh in on prices. Rumors of Russia lowering their import quota from the US weighed heavily on most months, Russia and US had been negotiating this for quite some time but may have triggered a faster pace as political issues are tense between Russia and Georgia. Pork bellies were limit down, marking the second day in a row f or substantial losses. Seasonal trends and patterns of heavier carcass weights and declining demand may be approaching. Oct -300 at 70.50 Feb PB -300 at 91.05

Cotton

Cotton futures posted impressive gains and closed higher on the day. Support from rallies in outside markets such as crude oil and gold helped boost cotton futures. Weather is playing a key roll in cotton futures, many traders are attempting to figure out just how Gustav will tract. If it builds up force and enters the Gulf of Mexico excessive rains and wind could damage crops in the Delta region. Weakness in the Dollar also lent support to cotton prices. Oct +118 at 68.45

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