Ag Market Commentary

Corn futures are trading 1 to 1 1/4 cents lower in the nearby contracts on Thursday. The USDA indicated that 876,394 MT of corn was sold for 2017/18 export during the week ending 11/30, with the range of expectations. That was up 46.27% from the previous week and 15.08% larger than this week last year. Columbia was the largest buyer at 173,700 MT, as Mexico purchased 150,300 MT. US corn exports during the month of October totaled 2.725 MMT, with 1.15 MMT going to Mexico. That was 24.7% lower than last October and down 22.7% from September. DDG exports were also larger than in September.

Dec 17 Corn is at $3.38, down 1 1/4 cents,

Mar 18 Corn is at $3.51 1/2, down 1 1/4 cents,

May 18 Corn is at $3.60, down 1 cent

Jul 18 Corn is at $3.68 1/4, down 1 cent

Soybean futures are currently 8 to 9 cents lower in the front months at midday, as Jan is back below the $10 mark. December meal is down $4.80/ton, with nearby bean oil 7 points lower. This morning’s Export Sales report showed 2017/18 sales blowing past expectations at 2.016 MMT. That was more than double the previous week’s sales and 51.8% larger than the same week last year. China was the primary buyer at 1.293 MMT, with 447,000 MT switched from Unknown. There were also sales of 70,352 MT for 18/19. Soy meal sales for 17/18 ran 166,428 MT and 20,000 for 18/19 during the week of Nov 30, as soy oil sales totaled 21,029. Census data shows soybean exports in October at 9.441 MMT, down 15.8% from last year but more than double September’s total.

Jan 18 Soybeans are at $9.93 3/4, down 9 cents,

Mar 18 Soybeans are at $10.06 1/4, down 8 1/2 cents,

May 18 Soybeans are at $10.16 1/2, down 8 3/4 cents,

Jul 18 Soybeans are at $10.25, down 8 1/4 cents,

Dec 17 Soybean Meal is at $335.60, down $4.80

Dec 17 Soybean Oil is at $33.02, down $0.07

Wheat futures are mostly 2 to 5 cents in the red on Thursday, with a few deferred contracts in MPLS steady. All wheat export sales for the week of 11/30 ran in the middle of expectations at 321,434 MT for 17/18 and 1,600 MT for 18/19 sales. Old crop sales were 74.3% above last week’s total but were still 36.1% lower than this week in 2016. Unknown destinations was the lead buyer at 69,800 MT, with Japan purchasing 63,100 MT. Trade data from the month of October shows the US shipped 1.393 MMT of wheat. That was down 19.64% from last month and 40.94% lower than the same time last year.

Dec 17 CBOT Wheat is at $3.95 1/4, down 3 1/4 cents,

Dec 17 KCBT Wheat is at $4.03 1/4, down 2 3/4 cents,

Dec 17 MGEX Wheat is at $5.98 3/4, down 5 cents

Live cattle futures are mixed at midday, with nearby Dec 15 points higher. Feeder cattle futures are steady to 7.5 cents higher in the front months. The CME feeder cattle index on December 5 was down 29 cents to $156.11. Wholesale boxed beef values were mixed on Thursday morning. Choice was down $1.24 at $205.16, with select 14 cents higher at $184.25. Estimated WTD FI slaughter was at 358,000 head through Wednesday, 1,000 above last week and 15,000 head larger than the same week last year. There were a few cash sales of $117 to $118.5 on Wednesday, with Thursday morning trade showing mostly $117 sales. US export sales of beef for what’s left of 2017 fell to a MY low of 2,665 MT, which is a drop of 80.7% from last week and 41% lower than last year. Japan purchased 1,700 MT, as reductions of 2,700 MT was shown for South Korea. There was a small Chinese cancellation of 200 tonnes. There were 11,277 MTs reported for 2018 sales for the week of 11/30, with South Korea buying 5,700 MT.

Dec 17 Cattle are at $116.050, up $0.150,

Feb 18 Cattle are at $119.200, down $0.075,

Apr 18 Cattle are at $120.500, down $0.125,

Jan 18 Feeder Cattle are at $146.025, unch,

Mar 18 Feeder Cattle are at $144.175, up $0.075

Apr 18 Feeder Cattle are at $144.400, up $0.025

Lean hog futures are posting losses of 15 to 80 cents on Thursday The CME Lean Hog Index for 12/5 was up 3 cents to $64.38. The USDA pork carcass cutout value was 79 cents higher at $83.54 in the Thursday morning report. The belly, ham, and rib were reported lower. The national base hog price was 77 cents lower at $58.05. Both the WCB and IA/MN region cash hog averages were down $1.35. The USDA FI hog slaughter was estimated at 1,395,000 head through Wednesday. That is up 31,000 head from the previous week and 76,000 head more than last year. Pork export sales of 22,629 MT were reported for the week ending 11/30 by the USDA this morning. That was up 47.3% from last week and 97.9% larger than last year, as Mexico purchased nearly 14,400 MT.

Dec 17 Hogs are at $63.675, down $0.150,

Feb 18 Hogs are at $68.350, down $0.600

Apr 18 Hogs are at $72.175, down $0.800

Cotton futures are mixed with the nearby contracts 16 to 33 points higher. Export sales of upland cotton came in at 186,579 RB during the week of Nov 30. That was down 32.52% from the previous week and 53.96% lower that this time last year. China was shown to have a net reduction of 39,700 RB, while Pakistan purchased 50,400 RB. The USDA also reported 50,368 RB in 2018/19 sales. The USDA Adjusted World Price (AWP) was updated to 65.03 cents/lb, up 81 point from the previous week. During October, the US shipped 97,302 MT of cotton for export. That was a drop of 21.5% from the previous month and 22.5% lower than last October. Online cash sales rose to 22,987 bales reported on the Seam, as prices dropped 20 points to 69.26 cents/lb. The Cotlook A index was unchanged from the previous day on December 6 to 82.95 cents/lb.

Mar 18 Cotton is at 73.05, up 33 points,

May 18 Cotton is at 73.55, up 16 points

Jul 18 Cotton is at 73.76, down 4 points

Market Commentary provided by:

Brugler Marketing & Management LLC
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