AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures are trading 1 to 1 1/2 cents higher this morning. They ended the Thursday session with most contracts steady to a penny lower. Dec futures will expire today. Open interest was down to 371 contracts. The USDA Export Sales report showed 18/19 corn sales in the week of 12/6 at 903,164 MT. That was down 23.3% from last week but still 4.18% larger than the same week in 2017. Japan was the lead buyer of 608,400 MT, with 234,600 MT sold to Mexico. USDA reported 161,440 MT. Export shipments were down from the week prior at 952,132 MT, but still 37.83% above the same week a year ago.

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures are currently 2 cents per bushel lower after settling with 12 to 13 cent losses in the front months on Thursday. Preliminary open interest dropped only 621 contracts, indicating rotation of ownership was the primary activity rather than long liquidation. March soy meal was down $4.10/ton, with soy oil 16 points lower. Soybeans showed some “buy the rumor, sell the fact” action following USDA confirmation of 1.13 MMT of export sales to China. The weekly Export Sales report (through December 6) indicated 792,269 MT of 18/19 soybeans were sold, within the range of pre-report estimates. That was down 11.1% from the week prior and 42.7% smaller than the same week in 2017. Shipments of soybeans totaled 1.147 MMT, 3.7% behind this week a year ago. Soybean meal sales totaled just 50,539 MT (a marketing year low), with soy oil at 5,928 MT.

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures are 1 to 4 cents lower across the three markets this morning, with Chicago SRW the weakest. They saw 8 to 9 1/2 cent gains in the front winter wheat contracts, with MPLS 3 to 5 1/4 cents higher. The moribund December contracts will expire today. Wheat weekly export sales totaled 754,054 MT, on the high side of estimates. That was a 5.9% jump from last week and 28.1% larger than a year ago. Unknown destinations purchased 210,600 MT, with Japan at 111,900 MT. More than half of the sales total was for HRW, at a MY high 418,161 MT and the largest weekly HRW sales total in 13 months. All wheat shipments were tallied at 490,666 MT. Japan bought 137,657 MT of wheat in the weekly MOA tender, with 60,248 MT from the US and the balance from Australia and Canada. Argentina’s harvest is nearly half done, with the Exchange trimming estimated production to 19.0 MMT from 19.2 MMT.

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures were mixed Thursday, with nearby Dec up 32.5 cents but February lower. The last half 2019 contracts were higher. Preliminary open interest surged 5,324 contracts. Feeder cattle futures were up 35 cents to $1. The CME feeder cattle index was up $1.43 on December 12 at $146.40. Wholesale beef prices were mixed, with the Ch/Select spread widening to $11.47. Choice boxes were up 22 cents at $212.47, with the Select cutout value 57 cents lower at $201.00. USDA estimated week to date cattle slaughter at 483,00 head through Thursday. That is 2,000 above last week and 11,000 head larger than the same week last year. Outside of the $119 trade on Wednesday’s FCE, few cash sales have been reported. Beef exports for the week ending December 6 totaled 18,162 MT.

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures closed with most contracts 22.5 cents to $1.60 lower on Thursday, with nearby Dec up 7.5 cents. The CME Lean Hog Index was down 44 cents from the previous day @ $55.54 on December 11. The USDA pork carcass cutout value was up 73 cents at $73.17. The national base cash hog carcass value was UNCH at a weighted average of $46.42. USDA estimated FI hog slaughter for Wednesday was 476,000 head, bringing the WTD total to 1.911 million head. That is 18,000 head larger than last week and 48,000 head above a year ago. Pork export sales for the week that ended on 12/6 totaled 22,334 MT for 2018 and 11,088 MT for 2019. Shipments were slightly lower than last week at 27,777 MT.

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures are trading 31 to 74 points lower this morning. They were down 53 to 58 points on Thursday, following weak export sales data. This morning’s Export Sales report indicated that just 47,099 RB of 18/19 upland cotton was sold for export in the week of 12/6. That was well below this time last year and 50.35% lower than the week prior. Vietnam purchased 29,300 RB, with China the second largest buyer of 11,700 RB. Sales of 19/20 upland cotton were 33,528 RB. Export shipments were down 2.53% from a week ago and 7.22% below last year at 154,547 RB. The Cotlook A index was up 5 points from the previous day on Dec 12 at 88.30 cents/lb. The weekly USDA AWP was updated to 69.77, good through next Thursday and up 43 points from the previous week.

--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