Ag Market Commentary

Corn futures closed higher for the sixth consecutive session, as March has risen 6 3/4 cents in that timeframe. 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. Last week’s report showed the week of 12/15 production 1.077 million bpd, which was the third largest weekly production only behind the prior two weeks. Consultant Michael Cordonnier is sticking with his 88 MMT forecast for Brazilian corn production, with Argentina at 42 MMT.

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

May 18 Corn closed at $3.62 1/4, up 1 1/4 cents,

Jul 18 Corn closed at $3.70 1/2, up 1 cent

Sep 18 Corn closed at $3.78, up 1 1/4 cents

Soybean futures settled the Wednesday session 2 to 3 3/4 cents lower in most contracts. January soy meal was down $1/ton, as nearby bean oil was 13 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. There was an explosion reported at a port in Rosario’s Grain hub, possibly affecting Argentina's shipping activities.

Jan 18 Soybeans closed at $9.55 1/2, down 3 3/4 cents,

Mar 18 Soybeans closed at $9.67 1/2, down 3 cents,

May 18 Soybeans closed at $9.78 1/2, down 3 cents,

Aug 18 Soybeans closed at $9.91 1/4, down 2 3/4 cents,

Jan 18 Soybean Meal closed at $314.20, down $1.00,

Jan 18 Soybean Oil closed at $33.07, down $0.13

Wheat futures saw gains of 5 to 6 cents in most CBT and KC contracts on short-covering ahead of year end. MPLS was up 10 1/4 cents in the nearby contract. 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 closed at $4.28, up 5 3/4 cents,

Mar 18 KCBT Wheat closed at $4.25 1/2, up 5 1/2 cents,

Mar 18 MGEX Wheat closed at $6.21 1/4, up 10 1/4 cents

Live cattle futures finished the Wednesday trade session with nearby Dec 52.5 cents higher. Other front months were weaker into the close after seeing near triple digit gains earlier. Feeder cattle futures were 35 to 77.5 cents higher on the day with a few back months lower. The CME feeder cattle index on December 26 was down 36 cents to $148.36. Wholesale boxed beef values were lower on Wednesday afternoon. Choice was down $1 at $201.60, with select down 41 cents at $190.42. Estimated FI cattle slaughter was 209,000 head through Wednesday. That is 29,000 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 closed at $122.025, up $0.525,

Feb 18 Cattle closed at $121.000, down $0.475,

Apr 18 Cattle closed at $121.700, down $0.225,

Jan 18 Feeder Cattle closed at $145.175, up $0.775

Mar 18 Feeder Cattle closed at $141.725, up $0.375

Apr 18 Feeder Cattle closed at $142.300, up $0.350

Lean hog futures ended the day with most contracts 10 to 50 cents lower, as a few deferred contracts were higher. The CME Lean Hog Index for 12/22 was down 14 cents to $61.62. The USDA pork carcass cutout value was up 54 cents at $77.02 in the Wednesday afternoon report. The butt and picnic were the only cuts reported lower. The national base hog price was 65 cents higher at $57.29 on Wednesday afternoon. The USDA weekly FI hog slaughter was estimated at 821,000 head through Wednesday. That is down 62,000 head from the same week last year.

Feb 18 Hogs closed at $71.025, down $0.500,

Apr 18 Hogs closed at $75.275, down $0.100

May 18 Hogs closed at $79.900, down $0.125

Cotton futures saw sharp triple digit gains in most nearby contracts on Wednesday, with help from outside markets. Crude oil futures had climbed back to nearly $60 per barrel yesterday, but were down 38 cents today. The US Dollar index was 249 points lower on Wednesday. Data from the CFTC show the total unpriced on-call position at 14.994 million bales. 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 closed at 78.950, up 152 points,

May 18 Cotton closed at 78.920, up 140 points

Oct 18 Cotton closed at 75.530, up 57 points

Market Commentary provided by:

Brugler Marketing & Management LLC
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