Cotton
What a difference a week makes! Last week, December cotton fell below their long-term uptrend, giving the charts a decidedly bearish appearance. The market never fell below Monday’s low of 88.95 cents, though, and rallied sharply on Friday. The market has continued to post big gains this week, moving to new contract highs above $1/lb, and a 10-year high on a front-month basis. Strong export movement, especially to China, has been supportive. The weekly export report released on Thursday showed sales of 571,400 bales, up 92% from the 4-week average. Rains in West Texas could disrupt harvest and cause quality concerns but have supported prices. The market is technically oversold and due a correction, but market bulls have managed to drive the market above $1 and there isn’t a lot of technical resistance at that level to turn things around.

Corn
USDA released their September 1 Grain Stocks report this week, and it was seen as bearish for corn. Stocks were pegged at 1.236 billion bushels, above the average trade estimate of 1.155 billion, but down significantly from last year’s 1.919 billion bushels. Weekly export sales were 14.6 million, below the average trade estimate and slightly bearish for the market. The chart action for December looks negative as the market charted a bearish outside day. Support starts at the recent low of $5.12, but the market could retest the low of $4.97 ½ on further weakness.

Soybeans
Soybean stocks were pegged at 256 million bushels in the September 1 Stocks Report. The market was expecting a carryout below 200 million bushels, with the average trade estimate coming in at 174 million bushels. USDA also revised the 2020 soybean crop estimate upward to 4.216 billion bushels, up 80.8 million. The South American crop is off to a good start, adding additional pressure to prices. Sharply higher crude oil prices should be supportive, but it wasn’t enough to have much impact. The November contract charted a bearish key reversal on Thursday, signaling that further weakness is likely. The June low of $13.38 ½ is a likely target for bears.

Rice
Rice futures failed to push above resistance at $14 last week, with that level of psychological resistance now becoming a potential double top for the market. Harvest progress has passed the mid-point, with 61% of the crop in the bins nationwide, and in Arkansas. That means harvest pressure continue to impact the market. Weekly exports were solid at 75,100 metric tons, and shipments were up 29% from the 4-week average at 54,800 metric tons. More than half of the shipments were headed to Iraq.

Cattle
Cattle futures continue to be under pressure as outside markets flounder amid financial uncertainty The September Cattle on Feed report showed August placements at 102% of the year-ago total, well above the average trade estimate, which expected to see fewer placements when compared with last year. Total feedlot inventory was pegged at 99% of last year, and marketings were 100% of a year ago, which was predicted by traders. Wholesale beef prices have been weaker, but packer margins remain incredibly strong. Feeder futures have also seen weakness in recent trading, the October contract could find support in the $150 area.

Hogs
Hog futures have rallied sharply this week after the Quarterly Hogs and Pigs report was released last Friday. The USDA pegged the supply of all hogs as of September 1 at 96% of last year, compared with of 98.3%. October hogs are now bumping up against resistance near $92. A close above that level would open the possibility of a retest of resistance at $94.