In the aftermath of the quarterly Grain Stocks report, corn futures rallied 10 to 14 1/4 cents. USDA saw 1.995 bbu of corn stocks on Sept 1. That was well below the average trade estimate of 2.266 bbu. The largest year to year changes came via the “I” states which were down 40.3% in IL, 24% in IN, and 5% in Iowa. 2019/20 corn production was increased by 2.67 mbu to 13.620 bbu. NASS dropped their implied 3Q use by 205 million bushels from the number they published in June, suggesting they miscalculated feed & residual by about that much during the pandemic shutdown. The ethanol number could also potentially be revised. The EIA’s weekly report showed reduced ethanol production and reduced stocks. Ethanol plants averaged 881,000 barrels per day produced on the week ending 9/25, which was down 25k bpd wk/wk. Stocks fell 306,000 barrels to 19.691 million. That is the 4th consecutive week with less than 20 million barrels on hand, and the lowest stockpile since December 2016. Ethanol futures were 2.3 cents higher on Wednesday. USDA quotes for DDGS were $200 to $215/ton for the week ending 9/25.

--- provided by Brugler Marketing & Management

Soybean futures closed the midweek session up by 21 1/2 to 30 1/2 of the 60 cent limit. Bean futures did close off their midday highs, which for Nov was $10.34 3/4 per bushel. Soy products borrowed strength from the beans and also closed the day in the black. Meal futures closed $10.50 to $12.40/ton higher, and bean oil futures rallied 44 to 50 points. CME reported 54 meal deliveries against October futures on 9/29. There were no soy oil deliveries issued against October. USDA’s mandatory reporting system announced a 215k MT sale of soybeans to unknown. Soybean stocks were reported at 523 mbu on September 1. That is down 386 mbu yr/yr and well below the estimated 578 from the trade. September bean stocks in Illinois were 64.7% lower yr/yr with 66 mbu on hand at the beginning of the month. Iowa soybean stocks were 36% lower yr/yr. NASS revised the 2019 bean crop 333,000 bushels lower to 3.552 bbu.

--- provided by Brugler Marketing & Management

Following the USDA updates, wheat futures rallied double digits. HRW futures were up the most across the ag futures complex, gaining 5.89% to 7.09% on the midweek session. HRW futures are back above $5 per bushel, and carry shrank as Dec was the strongest. SRW futures were 3.74% to 5.19% higher, led by a 28 1/2 cent gain in Dec. MGE wheat closed the Wednesday session with 12 1/2 to 15 3/4 cent gains. Wheat stocks were 2.159 bbu on September 1st, which was tighter than the average pre report estimate, and 17.3% tighter yr/yr. National wheat production was 1.826 bbu, down 12 mbu from the August estimate. Hard red winter wheat production is 659 vs. the trade guess of 693 mbu. SRW is 266 compared to the expected 276 and white was 233 mbu, 7 above the trade average guess. 2020/21 Other Spring wheat production was 586 mbu, 9 million above pre-report expectations. The Russian Ag Ministry raised their wheat production estimate from 75 MMT to 82 MMT.

--- provided by Brugler Marketing & Management

Live cattle futures closed the midweek session with 22 to 77 cent losses in the front months. Feeder cattle futures fell triple digits on higher corn, with 0.77% to 1.2% losses on the day. The CME Feeder Cattle Index was $142.58 on 9/29, back up by 22 cents. Sales from this morning’s FCE auction saw action for each lot listed, three feedlots passed on $104 offers and 358 head were sold at $106. USDA reported light cash cattle sales activity on Wednesday from $104 to $107, with dressed at $167. Not enough sales this week for a trend, but the bulk of activity has been $106-$107. Wholesale boxed beef prices were higher in the PM update. Choice boxes were up 58 cents to $217.74 cwt. Select boxes were 55 cents stronger at $207.54. Federally inspected cattle slaughter for the week through Wednesday was 358,000 head. That trails last week’s pace by 3k head, but is up 5,000 from the same week last year.

--- provided by Brugler Marketing & Management

Front month lean hog futures were $0.42 to $1.12 higher at the closing bell. The CME Lean Hog Index was $75.91 on 9/28 up another 49 cents. USDA’s National Average Afternoon Base Hog price back up by 55 cents, at $64.47. The ECB regional base hog price was quoted at $63.84 compared to $64.98 for WCB hogs. USDA’s National Pork Carcass Cutout value was $91.37 cwt. on Wednesday afternoon, 38 cents weaker. Hams and bellies were weaker, but the other primal cuts were stronger in the PM report. USDA estimated the week’s FI hog slaughter at 1.447 million head through Wednesday. That is down 3,000 from last week and 14,000 head below the same week last year.

--- provided by Brugler Marketing & Management

At the closing bell for Wednesday, front month cotton futures were 45 to 51 points in the black. Dec to March carry was 1 point better after Wednesday, at 75 points. Chinese cotton futures on the ZXE were 12,750 yuan (~ 84.98 cents/lb) for Jan. Carry to March on the ZXE is ~1.27 cents, as March futures closed at 12,935 yuan on 9/29. USDA’s Ag Attaché lowered India’s cotton carryin and reduced 2020/21 harvested acres for a net supply 760,000 bales below WASDE. With the tighter supply, the Ag Attaché sees exports at 4.3 million bales, compared to USDA’s official 5 million estimate. USDA’s Daily Spot Quotations report noted 5,831 bales sold on 9/30 for an average price of 60.15 cents/lb. The online cotton trading platform The Seam reported 1,249 bales sold on Tuesday for 53.25 cents/lb. The Cotlook A index was 71.15 c/lb on Sept 29, that was 15 points weaker. The AWP for cotton is 50.45 cents/lb, the week’s LDP is 1.55 cents. Both will be updated after the close tomorrow.

--- provided by Brugler Marketing & Management