Ag Market Commentary

Corn futures closed Tuesday with most contracts fractionally higher. 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. The weekly EIA report will be released Wednesday morning at 9:30 a.m. CST, as ethanol production looks to continue the robust numbers from tha past few weeks. 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 closed at $3.39 3/4, up 1/4 cent,

Mar 18 Corn closed at $3.53 3/4, up 1/4 cent,

May 18 Corn closed at $3.62 1/4, up 1/4 cent

Jul 18 Corn closed at $3.70 1/2, up 1/2 cent



Soybean futures settled the Tuesday session with most front contracts seeing 9 to 10 1/4 cent gains. Nearby Jan closed above $10 for the first time since mid October, as concerns of weather issues in South America are supportive. December meal was up $5.90/ton, with nearby bean oil 5 points higher. Analysts with Informa are estimating the 2017/18 Brazil soybean crop at 110 MMT, down 1 MMT from their previous projection. Canadian soybean production is estimated at 8.1 MMT for Wednesday’s Stats Canada report, which would be 0.2 MMT lower than September but still well above 6.55 MMT last year.

Jan 18 Soybeans closed at $10.08 1/2, up 10 cents,

Mar 18 Soybeans closed at $10.20 1/2, up 10 1/4 cents,

May 18 Soybeans closed at $10.30 3/4, up 9 3/4 cents,

Aug 18 Soybeans closed at $10.39 1/4, up 9 cents,

Dec 17 Soybean Meal closed at $341.30, up $5.90,

Dec 17 Soybean Oil closed at $33.41, up $0.05



Wheat futures finished the day with most contracts 3 to 5 3/4 cents lower, as the US dollar was nearly 275 points higher at the wheat close. 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 closed at $4.06, down 4 1/4 cents,

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

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



Live cattle futures showed weakness into the close, as most contracts were 15 to 87.5 cents lower with nearby Dec up a nickel. Feeder cattle futures were down sharply $1.375 to $2.125 in the front months. The CME feeder cattle index on December 4 was down 39 cents to $156.30. Wholesale boxed beef values were higher on Tuesday afternoon. Choice was up 89 cents at $209.08, with select $1.09 higher at $186.63. Estimated WTD FI slaughter was at 239,000 head through Tuesday, 1,000 above last week and 10,000 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 closed at $116.425, up $0.050,

Feb 18 Cattle closed at $120.525, down $0.650,

Apr 18 Cattle closed at $121.525, down $0.875,

Jan 18 Feeder Cattle closed at $147.825, down $2.125

Mar 18 Feeder Cattle closed at $145.750, down $2.000

Apr 18 Feeder Cattle closed at $146.400, down $1.525



Lean hog futures ended the day with losses of 10 cents to $1.175. The CME Lean Hog Index for 12/1 was up 66 cents to $63.92. The USDA pork carcass cutout value was 84 cents higher at $84.78 in the Tuesday afternoon report. The belly was the only cut reported lower. The national base hog price 29 cents higher at $59.43 this afternoon. The IA/MN region was 53 cent higher, with the WCB up 54 cents. The USDA FI hog slaughter was estimated at 931,000 head through Tuesday. That is up 23,000 head from the previous week and 52,000 head more than last year.

Dec 17 Hogs closed at $64.275, down $0.675,

Feb 18 Hogs closed at $70.500, down $1.175

Apr 18 Hogs closed at $74.325, down $1.125



Cotton futures settled the Tuesday session with most contracts steady to slightly lower. The USDA ag attach estimates Indonesia’s cotton imports 3.391 million bales for 2016/17, which is up from 2.941 million bales in 2015/16. The number for 2017/18 imports is projected at 3.4 million bales. The FAS estimates that the imports from the US totaled 304,000 MT, which covers about 41.14% of the total. 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 closed at 74.960, down 7 points,

Mar 18 Cotton closed at 72.510, down 7 points

Jul 18 Cotton closed at 73.710, unch,






Market Commentary provided by:

Brugler Marketing & Management LLC
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