Ag Market Commentary

Corn futures are working on their sixth consecutive day of gains, as most contracts are steady to a penny higher. As of Tuesday evening, the national average cash corn price was $3.15 1/4 according to the DTN national corn index. That is 2 1/4 cents lower than the same day last year, as the basis, at -37 1/2 cents, is even with a year ago. The weekly EIA report will be delayed until Thursday morning due to the shortened holiday week. Consultant Michael Cordonnier is sticking with his 88 MMT forecast for Brazilian corn production, with Argentina at 42 MMT.

Mar 18 Corn is at $3.53 1/2, up 3/4 cent,

May 18 Corn is at $3.62, up 1 cent,

Jul 18 Corn is at $3.70 1/4, up 3/4 cent

Sep 18 Corn is at $3.77 1/4, up 1/2 cent

Soybean futures are mostly 4 1/2 to 5 1/4 cents lower in most nearby contracts at midday. January soy meal is down $2.40/ton, as nearby bean oil is 16 points in the red. The USDA reported a private export sale of 110,000 MT of soybeans to China for 17/18 delivery through their daily reporting system. The national soybean cash price according to DTN’s national soybean index was $8.90 3/4 on Tuesday. That is 57 cents lower than the same day last year, as the national basis is at -65 1/2 cents, 1 1/2 cents behind last year at this time. Dr. Cordonnier also left his estimate for Brazil production at 108 MMT, as Argentina remained at 55 MMT.

Jan 18 Soybeans are at $9.54, down 5 1/4 cents,

Mar 18 Soybeans are at $9.65 3/4, down 4 3/4 cents,

May 18 Soybeans are at $9.76 3/4, down 4 3/4 cents,

Jul 18 Soybeans are at $9.87 1/4, down 4 1/2 cents,

Jan 18 Soybean Meal is at $312.80, down $2.40

Jan 18 Soybean Oil is at $33.04, down $0.16

Wheat futures are showing gains of 3 to 4 1/2 cents in the nearby CBT and KC contracts, as MPLA is 6-7 cents higher. This week’s frigid temperatures could cause an issue in areas with little snow cover, though no major news of winter kill has been reported. This week’s USDA Export Sales report will be delayed until Friday morning, due to the short week. Egypt purchased 180,000 MT of wheat from Russia in their latest tender for early Feb delivery. Russia presented 8 of the 9 offers, with Romania showing the only other offer.

Mar 18 CBOT Wheat is at $4.26 3/4, up 4 1/2 cents,

Mar 18 KCBT Wheat is at $4.23 3/4, up 3 3/4 cents,

Mar 18 MGEX Wheat is at $6.17 1/2, up 6 1/2 cents

Live cattle futures are trading 27.5 to 80 cents higher again on Wednesday. Feeder cattle futures are also 40 to 82.5 cents in the green. The CME feeder cattle index on December 25 was down 64 cents to $148.72. Wholesale boxed beef values were mixed on Wednesday morning. Choice was up 15 cents at $202.75, with select down 26 cents at $190.57. Estimated FI cattle slaughter was 119,000 head on Tuesday, after Monday’s kill was quiet due to the Holiday. That is 4,000 head fewer than the same week last year. This morning’s FCE online auction showed no sales on the 637 head, with most asking prices around $122.

Dec 17 Cattle are at $122.300, up $0.800,

Feb 18 Cattle are at $121.750, up $0.275,

Apr 18 Cattle are at $122.275, up $0.350,

Jan 18 Feeder Cattle are at $145.225, up $0.825

Mar 18 Feeder Cattle are at $141.875, up $0.525

Apr 18 Feeder Cattle are at $142.350, up $0.400

Lean hog futures are down 5 to 47.5 cents in most nearby contracts at midday. The CME Lean Hog Index for 12/22 was down 14 cents to $61.62. The USDA pork carcass cutout value was up 4 cents at $76.52 in the Wednesday morning report. The loin and ham were the only cuts reported higher. The national base hog price was 40 cents higher at $57.04 on Wednesday morning. The WCB region was down $1.35, with IA/MN $1.02 lower. The USDA weekly FI hog slaughter was estimated at 467,000 head on Tuesday. That is up 23,000 head from the same week last year.

Feb 18 Hogs are at $71.050, down $0.475,

Apr 18 Hogs are at $75.325, down $0.050

May 18 Hogs are at $79.650, down $0.375

Cotton futures are showing sharp 98 to 130 point gains on Wednesday, with help from outside markets. Crude oil futures had climbed back to nearly $60 per barrel yesterday, as the US Dollar index is currently 285 points lower on Wednesday. Online cash sales of 12,003 bales reported by the Seam averaged 72.23 cents/lb on December 26, 135 points higher than the previous day. The Cotlook A index was not reported for December 26 due to the Boxing Day holiday. The current AWP is at 68 cents/lb and should be updated on Thursday.

Mar 18 Cotton is at 78.73, up 130 points,

May 18 Cotton is at 78.7, up 118 points

Jul 18 Cotton is at 78.8, up 98 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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