AgriCharts Market Commentary

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Corn

Corn futures are showing fractional gains in most contracts on Thursday. This morning’s USDA Export Sales report showed 866,918 MT in corn sales for the week of December 7, on the lower end side of expectations. That is down 1.08% from the week prior and 42.03% lower than this time in last year. Japan was the lead buyer at 182,900 MT, with Columbia purchasing 126,400 MT. Mexico, the largest importer of US corn, purchased just 22,747 MT. The Rosario Grain Exchange left their estimate for 2017/18 Argentine corn production on 41.5 MMT, compared to the USDA’s 42 MMT.

Dec 17 Corn is at $3.37 1/4, up 1/2 cent,

Mar 18 Corn is at $3.49 1/2, up 1/2 cent,

May 18 Corn is at $3.57 3/4, up 1/2 cent

Jul 18 Corn is at $3.66, up 1/2 cent

Soybeans

Soybean futures are trading 9-10 cents lower in most nearby contracts at midday. December meal is down $3.40/ton ahead of today’s expiration, with nearby bean oil 19 points in the red. Old crop soybean export sales of 1.423 MMT were reported in this morning’s weekly report, edging just into analysts expectations. That came in 4.4% larger than this time last year but 27.9% lower than the previous week. China purchased 872,300 MT, as 384,200 MT was switched from unknown. There was also 130,200 MT reported in reductions for unknown destinations. There was 113,240 MT reported for new crop sales. Soy meal sales came in at a MY high of 455,402 MT, with soy oil totaling 14,522 MT in sales. Analysts are expecting Friday’s NOPA report to show 163.191 mbu of soybeans crushed by NOPA members in November.

Jan 18 Soybeans are at $9.69 1/2, down 9 3/4 cents,

Mar 18 Soybeans are at $9.80 3/4, down 9 3/4 cents,

May 18 Soybeans are at $9.92, down 9 1/2 cents,

Jul 18 Soybeans are at $10.01 3/4, down 9 1/4 cents,

Dec 17 Soybean Meal is at $321.70, down $3.40

Dec 17 Soybean Oil is at $32.92, down $0.19

Wheat

Wheat futures are mostly 1-3 cents higher in most contracts on Thursday, with nearby Dec up 3-5 cents ahead of today’s expiration. The USDA indicated all wheat old crop export sales picking up to 588,834 MT, a jump of 83.2% from a week ago and 10.8% larger than last year. There was also 9,500 MT reported for 2018/19 export sales. Thailand was the largest buyer of old crop wheat at 96,000 MT, with Morocco purchasing 90,000 MT. Japan purchased 147,696 MT of wheat from Australia, Canada, and the US in their regular weekly tender, with 95,366 MT from the US. Argentina’s 2017/18 wheat crop is estimated at 17.3 MMT according to the Rosario Grain Exchange, 1 MMT larger than previously projected.

Dec 17 CBOT Wheat is at $3.92 1/4, up 5 cents,

Dec 17 KCBT Wheat is at $3.99, up 5 cents,

Dec 17 MGEX Wheat is at $5.99 3/4, up 3 cents

Cattle

Live cattle futures are currently 72.5 cents to $1.175 higher at midday. Feeder cattle futures are $1.05 to $1.225 in the green in most front months. The CME feeder cattle index on December 12 was down 25 cents to $153.64. Wholesale boxed beef values were mixed on Thursday morning. Choice was up 63 cents at $203.11, with select 49 cents lower at $184.53. Estimated week to date FI cattle slaughter was 355,000 head through Wednesday, 3,000 head fewer than the previous week but 11,000 head larger than the same week last year. Beef export sales for 2017 during the week of 12/7 came in 130.2% above last week at 6,136 MT, which was well above last year’s net reductions for this week. There were also 8,637 MTs report for 2018 sales. There are cash bids of $116 so far this morning but no confirmed trades.

Dec 17 Cattle are at $116.800, up $1.150,

Feb 18 Cattle are at $119.550, up $1.175,

Apr 18 Cattle are at $120.925, up $0.725,

Jan 18 Feeder Cattle are at $146.700, up $1.050

Mar 18 Feeder Cattle are at $144.775, up $0.725

Apr 18 Feeder Cattle are at $145.250, up $1.225

Lean Hogs

Lean hog futures are up $1.325 to $1.45 in the front months on Thursday, with nearby soon to expire Dec 7.5 cents higher. The CME Lean Hog Index for 12/12 was down 11 cents to $64.86. The USDA pork carcass cutout value was up 87 cents at $77.38 in the Thursday morning report. The ham and belly were lower, with the rib up $8.38. The national base hog price was $1.02 lower at $58.01 this morning. The USDA daily FI hog slaughter was 1,400,000 head WTD through Wednesday. That was up 10,000 head from the previous week and 76,000 head more than the same week last year. The USDA reported 2017 pork export sales of 17,321 MT in the week ending 12/7. That was down 23.5% from a week ago and nearly triple the same week in 2016. Sales of 2018 pork came in at 19,818 MT.

Dec 17 Hogs are at $64.025, up $0.075,

Feb 18 Hogs are at $68.125, up $1.325

Apr 18 Hogs are at $72.925, up $1.450

Cotton

Cotton futures are 73 to 80 points in the green at midday. This morning’s Export Sales report showed 259,661 RB in old crop upland cotton sales, a jump of 39.17% over last week but down 16.69% from last year. Turkey purchased the largest amount of old crop at 63,300 RB, with Vietnam buying 59,500 RB. There was an additional 35,992 RB in new crop upland sales. Pima sales totaled 10,100 RB. The USDA Adjusted World Price (AWP) was updated to 65.95 cents/lb, 92 points higher than the previous week. The Cotlook A index was unchanged from the previous day to 83.45 cents/lb on December 13.

Mar 18 Cotton is at 74.93, up 80 points,

May 18 Cotton is at 75.3, up 75 points

Jul 18 Cotton is at 75.6, up 73 points


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
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