AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are fractionally higher ahead of the weekly Export Sales report. Most contracts closed steady to 1 1/4 cents higher on Wednesday. Yesterday morning’s weekly EIA report showed ethanol production for the week of 12/7 at 1.046 million barrels per day. That was down 23,000 bpd from the week prior and well below this time last year. Ethanol stocks were down 140,000 barrels to 22.890 million barrels. Trade estimates for this morning’s weekly USDA Export Sales report are running 1-1.5 MMT for the week that ended December 6. On Tuesday, USDA hiked projected EU 18/19 corn production at 60.4 MMT, up 0.9, with Ukraine up 1.5 to 35 MMT.

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures are trading 1 to 2 cents lower this morning. They ended the Wednesday session with most contracts 4 to 5 cents higher. Nearby soy meal was up $1.90/ton, with soy oil 9 points higher. On Wednesday, Reuters reported at least 500,000 MT of soybeans were purchased by Chinese state-owned companies. The trade will be looking for USDA to confirm those sales under the daily reporting system. Traders are thinking 2018/19 soybean export sales in the week of 12/6 totaled 0.7-1 MMT. Soybean meal sales are seen at a 225,000-450,000 range, with soy oil at 5,000-25,000 MT. The weekly FAS report will be out at 7:30 AM CST.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are mostly 1 to 5 cents higher this morning, with KC HRW the strongest. They closed Wednesday with gains of 5 to 8 cents in most front months, disregarding soon to expire December. The range of trade estimates for all wheat sales in today’s Export Sales report is 500,000-800,000 MT. On Tuesday, USDA narrowed the cash average wheat price estimate by 20 cents to $5.05-$5.25, with the mid-point rising a nickel to $5.15. The same WASDE report saw Australian 18/19 production down 0.5 to 17 MMT, with Canadian up 0.3 to 31.8 MMT. Egypt’s GASC purchased 180,000 MT of wheat on Wednesday, split between Russia (120,000) and Romania (60,000). Iraq purchased 50,000 MT of US wheat from their tender back on Dec. 3, with the deal finalized late on Tuesday.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle settled Wednesday with gains of 15 to 75 cents in most contracts. Feeder cattle futures were up 27.5 to 45 cents on the day. The CME feeder cattle index was up 96 cents on December 10 at $144.96. Wholesale beef prices were mixed again on yesterday afternoon, with the Ch/Select spread tightening to $10.68. Choice boxes were down $2.21 at $212.25, with the Select cutout value 18 cents higher at $201.57. USDA estimated week to date cattle slaughter at 361,00 head. That is 1,000 above last week and 7,000 head larger than the same week last year. Wednesday’s FCE auction saw 97 of the 156 head sold, with the single lot going for $119. Japanese tender results are expected this morning.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures were steady to 50 cents higher in most contracts on Wednesday. The CME Lean Hog Index was down 14 cents from the previous day @ $55.98 on December 10. The USDA pork carcass cutout value was down 89 cents at $72.44. The national base cash hog carcass value was down 27 cents to a weighted average of $46.33. USDA estimated FI hog slaughter for Wednesday was 477,000 head, bringing the WTD total to 1.435 million head. That is 13,000 head larger than last week and 37,000 head above a year ago.

Cotton Market News and Commentary

Cotton futures are trading 9 to 19 points lower ahead of the weekly Export Sales report. They were 5 to 25 points lower in the front months at settlement on Wednesday. This morning’s USDA Export Sales report will show data from the week following a US and China “90-day truce,” where China agreed to buy more US ag goods. USDA did trim China’s 18/19 usage number on Tuesday by 1 million bales to 41.5 million. They also raised Pakistan imports by 300,000 bales on lower domestic production. The Cotlook A index was down 25 points from the previous day on Dec 11 at 88.25 cents/lb. The weekly USDA AWP is 69.34, effective through today.

--provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353