Feed Ingredients Report: Week Ending Aug. 17, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Aug. 19, 2018	3.62	8.70	5.42
Aug. 12, 2018	3.68	8.84	5.65
Aug. 5, 2018	3.68	8.91	5.55
July 29, 2018	3.68	8.91	5.55

• Corn holding form and still in a position to rally with the market trading just a nickel below pre-report levels. Volume has declined indicating a reduction in trading interest.
• Soybeans have fully recovered the losses from the crop report and are now actually trading higher than pre-report levels which is a bit impressive. Volume has been decent in soybeans and quite a bit better in relative terms than corn.
• Meal remains heavily range bound despite some fund buying seen over the last week. Meal is acting like the anchor to soybeans and oil staying mostly steady while the other two bounces around. Funds bought 10k in the COT which is the boost that took us off the crop report lows but since then it has been very quiet.
• Oil has moved into a more sideways pattern despite the funds increasing their net short to a record 97k. Likely this is all crush spread trade as we have seen the crush spread fluctuating considerably in recent weeks.
• Funds did not do a lot on positions in the COT on Friday. They are long 132K in wheat and 56K in meal and short a net 25K in corn, 59K in soybeans and 97K in bean oil. They bought 12k wheat, 5k corn, 10K meal and sold 2k soybeans and 6k oil. Interesting to note that while they did not do much NET in corn, they did liquidate about 40k trades (longs & shorts) in corn, so they are getting out. Seems like some are losing interest in Ags as the summer wanes.
• Oilseeds still seeing positive impact from upcoming trade talks with China near the end of the month. Still, we see stuck in all three of the major Ag markets and likely will need something big to jar us out of the ranges.

Weekly Spotlight

U.S. soybean ending stocks are expected to be the highest on record this year which should keep meal and oil prices very subdued.