AgriCharts Market Commentary

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Corn

Corn futures are showing few signs of life at midday, fractionally lower in most contracts. This morning’s USDA Export Inspections report showed shipments of 594,281 MT during the week of 12/14. That was a drop of 17.23% from the week prior and lags this time last year by 26.2%. A private export sale of 168,000 MT of 17/18 sorghum to China was reported by the USDA through their daily reporting system. The Friday afternoon Commitment of Traders report showed spec funds adding to their net short position by 36,673 contracts in the week ending December 12. They were net short 197,192 contracts of futures and options on that date.

Mar 18 Corn is at $3.47, down 1/2 cent,

May 18 Corn is at $3.55 1/4, down 1/2 cent,

Jul 18 Corn is at $3.63 1/2, down 3/4 cent

Sep 18 Corn is at $3.70 1/2, down 3/4 cent

Soybeans

Soybean futures are currently 6 to 7 1/4 cents lower on Monday, shrugging off a large export sale announcement from this morning. Weekend rains throughout parts of Argentina are putting pressure on the market. January soy meal is down $2.30/ton, as nearby bean oil is 4 points in the red. The USDA announced a big private export sale of 396,000 MT of soybeans to China for 2017/18 delivery. The weekly Export Inspections report indicated 1.775 MMT in soybean exports during the week of December 14. That is a jump of 43.87% from the previous week and 1.86% larger than last year. This was the first week that was larger than the year prior since mid-September.

Jan 18 Soybeans are at $9.60, down 7 1/4 cents,

Mar 18 Soybeans are at $9.71 1/4, down 6 3/4 cents,

May 18 Soybeans are at $9.82, down 7 cents,

Jul 18 Soybeans are at $9.92 1/4, down 6 3/4 cents,

Jan 18 Soybean Meal is at $318.30, down $2.30

Jan 18 Soybean Oil is at $33.12, down $0.04

Wheat

Wheat futures are trading 1 to 3 cents higher in most CBT and KC contracts at midday, with MPLS up 1/2 cent in nearby March. All wheat export inspections for the week of 12/14 totaled 585,637 MT. That was an increase of 65.18% over the week prior and 21.05% larger than this time last year. The CFTC report on Friday afternoon showed the big spec funds adding back to their net short Chicago SRW positions by 38,871 contracts in the week ending 12/12. They were net short 157,652 contracts at that time. Russia’s Ag Ministry is expecting the 17/18 wheat exports to total 40 MMT. The current USDA estimate is 33.5 MMT. There are some questions about whether their export infrastructure can allow for the 40 MMT. Rail subsidies are being increased, but port capacity is being questioned by some.

Mar 18 CBOT Wheat is at $4.19 3/4, up 1 1/2 cents,

Mar 18 KCBT Wheat is at $4.19 3/4, up 2 1/4 cents,

Mar 18 MGEX Wheat is at $6.20 1/2, up 1/2 cent

Cattle

Live cattle futures are mostly lower on Monday, with nearby Dec up 60 cents as it tries to catch Friday’s late cash trade. Feeder cattle futures are currently 30 to 50 cents lower. The CME feeder cattle index on December 14 was up 9 cents to $154.40. Wholesale boxed beef values were higher on Monday morning. Choice was up $1.36 at $203.23, with select $1.31 higher at $184.56. Last week’s estimated FI cattle slaughter was 630,000 head, 6,000 head fewer than the previous week but 24,000 head larger than the same week last year. Cash trade picked up late Friday afternoon with sales of $119-120.50, up $2 from the previous week.

Dec 17 Cattle are at $119.750, up $0.850,

Feb 18 Cattle are at $120.475, down $0.550,

Apr 18 Cattle are at $121.775, down $0.375,

Jan 18 Feeder Cattle are at $147.425, down $0.325

Mar 18 Feeder Cattle are at $145.050, down $0.500

Apr 18 Feeder Cattle are at $145.625, down $0.300

Lean Hogs

Lean hog futures are mixed at midday, with nearby Feb 67.5 cents lower. The CME Lean Hog Index for 12/14 was down 53 cents to $64.11. The USDA pork carcass cutout value was down $1.90 at $75.67 in the Monday morning report. The butt was the only cut reported higher. The national base hog price was 14 cents higher at $56.27 this morning. The USDA weekly FI hog slaughter was estimated at 2,578,000 head through Saturday, which is an all time record. That is up 41,000 head from the previous week and 76,000 head more than the same week last year.

Feb 18 Hogs are at $67.850, down $0.675,

Apr 18 Hogs are at $72.300, down $0.500

May 18 Hogs are at $78.000, up $0.150

Cotton

Cotton futures are posting losses of 52 to 65 points on Monday, despite sharp losses of 341 points in the US dollar. There is some pre-holiday profit taking after March gained 3% last week. The Commitment of Traders report showed the spec traders adding another 7,101 contracts to their net long position in the week ending December 12, taking it up to 89,510 contracts. The USDA Adjusted World Price (AWP) was updated to 65.95 cents/lb, 92 points higher than the previous week. The Cotlook A index was 120 points higher from the day prior on December 15 to 85.90 cents/lb. Online cash sales on the Seam jumped to 40,261 bales, with prices averaging 70.07 cents/lb, down 17 points from the previous day.

Mar 18 Cotton is at 75.4, down 52 points,

May 18 Cotton is at 75.67, down 65 points

Jul 18 Cotton is at 76.1, down 64 points


Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
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