Ag Market Commentary

Corn futures are fractionally lower at midday. The USDA announced a private export sale of 162,000 MT of US sorghum for 17/18 delivery to China through their daily reporting system this morning. Canada’s 2017 corn crop is estimated to be about 14.1 MMT in Wednesday’s Stats Canada report based on a limited trade survey. That would be slightly lower than the previous report in September, but nearly 1 MMT larger than the previous year. Informa expects the 2017/18 corn crop in Brazil at 89 MMT, down 3 MMT from their prior estimate. Safras is estimating total Brazilian corn production of 90.52 MMT for the new year.

Dec 17 Corn is at $3.39 1/4, down 1/4 cent,

Mar 18 Corn is at $3.53 1/4, down 1/4 cent,

May 18 Corn is at $3.61 3/4, down 1/4 cent

Jul 18 Corn is at $3.69 3/4, down 1/4 cent

Soybean futures are showing 10 to 11 1/2 cents gains on Tuesday. December meal is up $6/ton, with nearby bean oil down 6 points. Traders are expecting Stats Canada to raise the country’s 2017 canola production number 5 MMT from September to 20.2 MMT on Wednesday. Canadian soybean production is estimated at 8.1 MMT, which would be 0.2 MMT lower than September but still well above 6.55 MMT last year. Analysts with Informa are estimating the 2017/18 Brazil soybean crop at 110 MMT, down 1 MMT from their previous projection.

Jan 18 Soybeans are at $10.10, up 11 1/2 cents,

Mar 18 Soybeans are at $10.21 3/4, up 11 1/2 cents,

May 18 Soybeans are at $10.32, up 11 cents,

Jul 18 Soybeans are at $10.39 3/4, up 10 1/4 cents,

Dec 17 Soybean Meal is at $341.40, up $6.00

Dec 17 Soybean Oil is at $33.30, down $0.06

Wheat futures are trading with 3 to 5 1/4 cent losses in most contracts at midday. Japan is seeking 64,495 MT of US wheat in their weekly tender that is looking to purchase 154,694 MT in Australian, Canadian, and US wheat. That tender will close on Thursday. Russia’s IKAR is estimating the country to export 35.3 MMT of wheat in 2017/18, 1.3 MMT higher than their previous estimate. Argentina’s wheat production is estimated at 18 MMT according to Informa analysts, up 0.3 MMT. They are also expecting the Australian production number 1.3 MMT lower than their previous projection at 20.3 MMT.

Dec 17 CBOT Wheat is at $4.06, down 4 1/4 cents,

Dec 17 KCBT Wheat is at $4.14 3/4, down 5 1/4 cents,

Dec 17 MGEX Wheat is at $6.09, down 5 cents

Live cattle futures are mostly lower at midday, after showing gains earlier. Nearby Dec is up 42.5 cents. Feeder cattle futures are steady to 62.5 cents lower. The CME feeder cattle index on December 1 was down 51 cents to $156.69. Wholesale boxed beef values were higher on Tuesday morning. Choice was up 20 cents at $208.39, with select $1.83 higher at $187.37. Estimated FI slaughter was 119,000 head on Monday, 1,000 above last week and 5,000 head larger than the same week last year. This week’s online FCE auction shows just 5 lots totaling 653 head of cattle for sale on Wednesday. The past two weeks have shown no sales.

Dec 17 Cattle are at $116.800, up $0.425,

Feb 18 Cattle are at $121.050, down $0.125,

Apr 18 Cattle are at $121.950, down $0.450,

Jan 18 Feeder Cattle are at $149.325, down $0.625

Mar 18 Feeder Cattle are at $147.450, down $0.300

Apr 18 Feeder Cattle are at $147.925, unch,

Lean hog futures are currently 85 cents to $1.325 on Tuesday. The CME Lean Hog Index for 12/1 was up 66 cents to $63.92. The USDA pork carcass cutout value was 31 cents higher at $84.25 in the Tuesday morning report. the butt, rib, and loin were the only cuts higher. The national base hog price 5 cents lower at $59.09 this morning. The IA/MN region was 22 cent higher, with the WCB up 21 cents. The USDA FI hog slaughter was estimated at 465,000 head on Monday. That is up 20,000 head from the previous Monday and 27,000 head more than last year for the same Monday.

Dec 17 Hogs are at $64.100, down $0.850,

Feb 18 Hogs are at $70.350, down $1.325

Apr 18 Hogs are at $74.275, down $1.175

Cotton futures are mostly 35 to 43 points lower at midday. The International Cotton Advisory Committee increased their projection for 2017/18 world cotton production 0.18 MMT to 25.74 MMT. That would be 2.74 MMT larger than the previous year, as ending stocks were raised 0.34 MMT from last month to 19.24 MMT. Online cash sales dropped to 13,170 bales reported on the Seam, as prices rose 116 points to 69 cents/lb. The Cotlook A index was up 50 points on December 4 to 83.65 cents/lb.

Dec 17 Cotton is at 75.42, up 39 points,

Mar 18 Cotton is at 72.93, up 35 points

May 18 Cotton is at 73.72, up 43 points

Jul 18 Cotton is at 74.100, up 39 points

Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
Fax: 402-289-2353

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