AgriCharts Market Commentary

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Corn Market Fractionally Higher

Corn futures are fractionally higher this morning after being down 4 3/4 to 6 1/4 cents on Wednesday and closing the chart gap from September. The dollar is close to UNCH after the FOMC left interest rates UNCH on Wednesday. It has been declining all month. The weekly EIA ethanol production was 12,000 barrels per day higher than last week, with the report showing 1.072 million bpd. Stocks were again higher by 1.176 million barrels at 21.815 million barrels. That was the biggest weekly build since June 28. The FSA report showed 87.117 million acres, which is up 1% from December of last year. The prevent plant was up 10 million acres over last December, at 11.432 million acres. Traders are anticipating corn export sales for the week ending 12/05 to be in the range of 400-800k MT for corn when USDA issues the report this morning.

---provided by Brugler Marketing & Management

Soybean Market Extends Wednesday Weakness

Soybean futures are 2 to 3 cents lower ahead of the USDA weekly Export Sales report. They ended the Wednesday session lower by 8 1/4 to 9 3/4 cents. Traders “bought the rumor and sold the fact” of USDA confirming big new Chinese purchases because they had been informally reported several days earlier. Soymeal futures were down by $2.30/ton, while soy oil futures finished with a 23-point loss on the day. Expectations ahead of the USDA’s weekly export sales update today run 500,000-1.1 MMT for soybeans. The trade is also anticipating USDA will show 125-300k MT for soybean meal, with an estimated 8k-30k MT of soybean oil bookings in the week ending 12/05. The December update to the USDA’s prevented planting put the total at 4.461 million acres.

--- provided by Brugler Marketing & Management

Wheat Market Mixed, With Chicago Premium Easing

Wheat was mixed overnight, from 2 cents lower to 1 cent higher. Chicago SRW futures had losses of 3 3/4 to 4 3/4 cents in the nearby contracts on Wednesday. KC wheat futures were also lower at the close with front month losses ranging from 1/2 to 3 cents escalating through Dec 2020. MGE finished fractionally mixed. Estimates range from 200k MT to 400k MT of wheat bookings for the USDA weekly export sales report. Coceral gave EU wheat production a 1.7 MMT bump, if realized that would be a 14.26% yr/yr increase for EU wheat production. World ending stocks from yesterday’s WASDE were 1 MMT higher than the November forecast; at 289.5 MMT. Russia filled Syria’s international tender with 200,000 MT of milling wheat. Taiwan is also tendering for 104,600 MT of U.S. wheat.

--- provided by Brugler Marketing & Management

Cattle Market Holds Premium to Cash Market

Live cattle futures had gains of as much as 90 cents at the close yesterday. Dec futures were 72 cents higher. Feeder cattle futures gained triple digits on the day, with gains as much as $1.27 in the front months. The 12/10 CME Feeder Cattle index was at $143 even following a 41-cent drop. Wholesale boxed beef prices are again lower, abiding by a seasonal pattern of tightening the Choice/Select spread ($14.93). Choice boxes were $2.63 lower in the afternoon, while select boxes dropped by $1.63. The online Fed Cattle Exchange saw no sales, the packers passed on asks of $119 - $119.50. The USDA estimates week to date FI cattle slaughter at 365,000 head through Wednesday.

---provided by Brugler Marketing & Management

Lean Hogs Mixed as Cash Market Firms Slightly

Lean hog futures finished mixed, showing 20 cent losses, as well as 17 cent gains. The last trading day is Friday for December hogs, which stayed 17 cents higher. The 12/09 CME Lean Hog Index was at $58.47, after a 35-cent recovery. USDA’s pork carcass cutout value was 7 cents higher, with the primal cuts showing mixed activity. USDA’s national average base hog price for 12/11 was $0.21 higher at $47.79. USDA estimated FI hog slaughter through the week to be 1.474 million head, which is 12,000 head behind last week’s pace.

---provided by Brugler Marketing & Management

Cotton Market Mixed Ahead of USDA Export Sales Data

Cotton futures are hovering within 5 points either side of UNCH this morning. Yesterday the futures front months ended mixed at 6 lower to 18 higher. The USDA GAIN reports indicated Brazilian cotton expansion is slowing down, with 19/20 MY plantings only growing 2% yr/yr. The USDA estimated the 19/20 Brazilian cotton harvest to be 12.67 million bales. The report also showed that Brazil’s cotton exports could rise 41.6% yr/yr with a 3% increase in domestic consumption. The Seam online cotton trading reported another very active day for 12/10 with 21,933 bales sold at an average gross price of 59.89 cents per bale. The Cotlook A Index fell 50 points on 12/10 to 74.85. The weekly AWP is 55.97 cents/lb through this afternoon.

---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