Ag Market Commentary
BRUG - Wed Dec 11, 4:37PM CST

Corn futures were down 4 3/4 to 6 1/4 cents after Wednesday trading, closing the chart gap from September. The weekly update from the EIA showed 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.

Dec 19 Corn is at $3.57, down 6 1/4 cents,

Mar 20 Corn is at $3.71 1/2, down 5 1/2 cents,

May 20 Corn is at $3.78, down 4 3/4 cents,

Jul 20 Corn is at $3.83 3/4, down 4 1/4 cents,

---provided by Brugler Marketing & Management

Soybean futures ended the mid-week session lower by 8 1/4 to 9 3/4 cents. Soymeal futures were down by $2.30/ton, while soy oil futures finished with a 23-point loss on the day. China purchased 585,000 MT of soybeans for 19/20 MY delivery, which was reported as the largest single daily booking since April. Another private export sale was reported this morning, the second one of 140,000 MT of soybeans for unknown destinations and also for 19/20 MY delivery. Expectations ahead of the USDA’s weekly export sales update range from 500k-1.1 MMT for soybeans, traders also anticipate tomorrows report to show 125-300k MT for soybean meal, with an estimated 8k-30k MT of soybean oil bookings through the week ending 12/05. The December update to the USDA’s prevent plant was 4.461 million acres. The USDA estimated 2019/20 world bean ending stocks at 96.4 MMT, which is up from last month following a hike in projected Chinese soybean production to 18.1 MMT. China indicated an 11% uptick in area planted vs. 2018. USDA boosted expected Chinese ending stocks by the same 1 MMT.

Jan 20 Soybeans are at $8.92 1/4, down 9 cents,

Mar 20 Soybeans are at $9.06 1/2, down 9 cents,

May 20 Soybeans are at $9.20 1/4, down 8 3/4 cents,

Jul 20 Soybeans are at $9.33 3/4, down 8 1/4 cents,

Dec 19 Soybean Meal is at $294.60, down $2.30

Dec 19 Soybean Oil is at $31.24, down $0.23

--- provided by Brugler Marketing & Management

Wheat futures trading mostly lower after Wednesday’s trades. Chicago SRW futures were down by the most posting losses of 3 3/4 to 4 3/4 cents in the nearby contracts. 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 tomorrow’s USDA weekly export sales data. The French monthly estimate for 19/20 MY exports from France Agrimer was 200,000 MT higher, to 12.2 MMT. 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, the country wants 104,600 MT of U.S. wheat.

Dec 19 CBOT Wheat is at $5.29, down 5 3/4 cents,

Dec 19 KCBT Wheat is at $4.16, unch,

Dec 19 MGEX Wheat is at $5.01 1/2, up 4 1/2 cents,

--- provided by Brugler Marketing & Management

Live cattle futures had posted gains of as much as 90 cents at the close. 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, which was at $14.93. Choice boxes were $2.63 lower this afternoon, while select boxes dropped by only $1.63. The online Fed Cattle Exchange saw no sales this morning, the packers passed on asks of $119 - $119.50. Cash sales for this week are back down from the $120 range of last week, with reports of $118 - $119 through the first half of the week. The USDA estimates week to date FI cattle slaughter at 365,000 head through Wednesday.

Dec 19 Cattle are at $120.600, up $0.725,

Feb 20 Cattle are at $125.400, up $0.825,

Apr 20 Cattle are at $125.950, up $0.900,

Jan 20 Feeder Cattle are at $142.925, up $1.275

Mar 20 Feeder Cattle are at $143.775, up $1.250

Apr 20 Feeder Cattle are at $145.600, up $1.125

---provided by Brugler Marketing & Management

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 since a midday gain of 20 cents. 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 movements on the day. 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.

Dec 19 Hogs are at $60.650, up $0.175,

Feb 20 Hogs are at $67.775, down $0.200

Apr 20 Hogs are at $74.375, up $0.175

---provided by Brugler Marketing & Management

Cotton futures came back down after posting midday highs, but front months ended mixed at 6 lower to 18 higher. This morning the USDA GAIN reports focused on cotton, they reported that Brazilian cotton expansion is slowing down, with 19/20 MY plantings only growing 2% yr/yr. The USDA reported an estimate for the 19/20 Brazilian cotton harvest to be 12.67 million bales. The report also showed that Brazil’s cotton exports would 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 tomorrow afternoon.

Mar 20 Cotton is at 65.87, down 6 points,

May 20 Cotton is at 66.93, up 3 points

Jul 20 Cotton is at 67.77, up 18 points

Oct 20 Cotton is at 67.91, unch

---provided by Brugler Marketing & Management

Market Commentary provided by:

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