Ag Market Commentary

Corn futures are mostly steady at midday, with nearby Mar down 1/4 cent. A private export sale of 134,148 MT of corn was reported for 17/18 delivery to Mexico through the USDA’s daily export reporting system. The USDA Export Inspections report showed just 609,281 MT of corn shipments during the week of 12/21. That was 4.33% lower than last week and 37.95% behind the same week last year. Exports of corn for the 17/18 marketing year YTD are at 9.842 MMT, which is lagging last year by 40.03%. Friday’s Commitment of Traders report showed spec traders in corn futures and options adding 24,961 contracts to their net short position of 222,153 contracts in the week ending 12/19.

Mar 18 Corn is at $3.51 3/4, down 1/4 cent,

May 18 Corn is at $3.60 1/4, down 1/4 cent,

Jul 18 Corn is at $3.68 3/4, unch ,

Sep 18 Corn is at $3.75 3/4, down 1/4 cent

Soybean futures are posting 10-11 cent gains on Tuesday, following the Christmas holiday break. January soy meal is up $2.30/ton, as nearby bean oil 50 points higher. Export inspections of US soybeans for the week that ended 12/21 came in at 1.283 MMT. That dropped 28.43% from last week and is 25.42% lower than this time last year. Managed money flipped their net position from long to short as of 12/19 by 60,526 contracts in a week. Their net short position was at -40,771 contracts in soybean futures and options on that date. Chinese imports of soybeans totaled 8.684 MMT during November, which is 10.83% larger than November 2016. Imports from the US picked up to 4.662 MMT, which still lags a year ago by 17.01%, while imports from Brazil came in at 2.76 MMT, well above last year.

Jan 18 Soybeans are at $9.59 1/2, up 10 cents,

Mar 18 Soybeans are at $9.70 1/2, up 10 1/4 cents,

May 18 Soybeans are at $9.81 3/4, up 10 1/2 cents,

Jul 18 Soybeans are at $9.91 3/4, up 10 cents,

Jan 18 Soybean Meal is at $315.10, up $2.30

Jan 18 Soybean Oil is at $33.24, up $0.50

Wheat futures are showing losses in most CBT and KC contracts on Tuesday, with MPLS slightly higher. All wheat export inspections for the week that ended on December 21 came in at 493,550 MT. That was 21.03% lower than the week prior and was 8.71% behind this time in 2016. So far in the 2017/18 wheat marketing year total export inspections have been reported at 14.23 MMT, just 5.96% behind 16/17. Spec funds in Chicago wheat futures and options backed 4,075 contracts off their net short position to -153,577 contracts as of Tuesday. Import data from China shows the country’s wheat imports during November totaled 155,817 MMT, well above the same month last year. China’s 2017 imports of wheat from Jan-Nov have totaled 4.115 MMT, 30.6% larger than 2016.

Mar 18 CBOT Wheat is at $4.21, down 3 3/4 cents,

Mar 18 KCBT Wheat is at $4.18, down 4 1/4 cents,

Mar 18 MGEX Wheat is at $6.13, up 1 1/4 cents

Live cattle futures are trading $1 to $1.60 in the green, following Friday’s friendly Cold Storage report. Feeder cattle futures are $2.15 to $2.45 higher at midday. The CME feeder cattle index on December 21 was down $1.92 to $149.92. Wholesale boxed beef values were sharply higher on Monday morning. Choice was up $3.07 at $202.63, with select $3.15 higher at $191.03. Estimated weekly FI cattle was 612,000 head, 18,000 head fewer than the previous week but 43,000 head larger than the same week last year. Friday’s Cattle on Feed report showed placements during November 13.89% larger than last year. Marketings were 3.19% above a year ago, leaving December 1 cattle on feed a bearish 8.11% above Dec 2016 at 11.516 million head. There were 486.954 million pounds of beef in cold storage at the end of November, down 8.3% from a year ago and 3.96% lower than October. This ran counter to the seasonal tendency to build stocks and is impressive given larger beef production.

Dec 17 Cattle are at $120.950, up $1.125,

Feb 18 Cattle are at $120.150, up $1.575,

Apr 18 Cattle are at $120.875, up $1.600,

Jan 18 Feeder Cattle are at $144.000, up $2.450

Mar 18 Feeder Cattle are at $140.775, up $2.225

Apr 18 Feeder Cattle are at $141.600, up $2.150

Lean hog futures are 22.5 to 90 cents higher at midday. The CME Lean Hog Index for 12/21 was down 24 cents to $61.76. The USDA pork carcass cutout value was down 4 cents at $77.19 in the Monday morning report. The USDA weekly FI hog slaughter was estimated at 2,466,000 head. That is down 109,000 head from the previous week but 304,000 head more than the same week last year. The Friday USDA quarterly Hogs and Pigs report put the December 1 All Hogs inventory at 73.23 million head, up 2.4% from a year ago. The breeding herd was 1.1% larger, with the hogs kept for marketing 2.5% larger than December 1 2016. Frozen pork stocks at the end of November shrunk 15.61% from October to 504.975 million pounds. That was 2.7% lower than the USDA November 2016 figure.

Feb 18 Hogs are at $70.875, up $0.900,

Apr 18 Hogs are at $75.000, up $0.225

May 18 Hogs are at $80.000, up $0.250

Cotton futures are currently 16 to 25 points in the red on Tuesday. China imported 72,363 MT of cotton during November, 31.69% larger than a year ago. Of that total 12,756 MT was from the US, 30.04% lower than November 2016. The CFTC Commitment of Traders report showed cotton futures and options spec traders adding 8,165 contracts to their net long position. That 97,675 contracts figure was the largest reported net long position since mid-May. The Cotlook A index was 210 points higher from the day prior on December 22 to 88.60 cents/lb.

Mar 18 Cotton is at 77.68, down 19 points,

May 18 Cotton is at 77.88, down 16 points

Jul 18 Cotton is at 78.09, down 25 points

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353

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