Ag Market Commentary

Corn futures are trading 3 to 3 1/4 cents lower at midday on profit taking ahead of the New Year. This week’s EIA report indicated ethanol production for the week ending 12/22 increasing 13,000 barrels per day from the week prior to 1.09 million bpd. That is the second largest weekly production on record. Stocks of ethanol were trimmed by 289,000 barrels to 22.031 million barrels, as all regions except the Gulf saw decreasing stocks. Traders expectations for Friday’s Export Sales report show a wide range of old crop corn sales at 0.6-1.1 MMT, with 0-50,000 MT seen for new crop.

Mar 18 Corn is at $3.50 3/4, down 3 cents,

May 18 Corn is at $3.59, down 3 1/4 cents,

Jul 18 Corn is at $3.67 1/2, down 3 cents

Sep 18 Corn is at $3.75, down 3 cents

Soybean futures are giving back Wednesday’s gains, with most contracts 11-12 cents in the red. January soy meal is down $2/ton, as nearby bean oil is 52 points lower. A Reuters report shows that roughly half of the US shipments to China in 2017 consisted of more than 1% FM. This would increase costs to US exporters. Soybean old crop export sales are expected to be in the range of 0.8-1.5 MMT in Friday’s USDA report. Following Wednesday’s report of an explosion at a Rosario port that left one dead, workers started a 48 hour strike with the reason being safety concerns. The market is showing little reaction, as exports there are typically slower around this time.

Jan 18 Soybeans are at $9.44 1/2, down 11 cents,

Mar 18 Soybeans are at $9.56, down 11 1/2 cents,

May 18 Soybeans are at $9.67 1/4, down 11 1/4 cents,

Jul 18 Soybeans are at $9.77 3/4, down 11 1/4 cents,

Jan 18 Soybean Meal is at $312.20, down $2.00

Jan 18 Soybean Oil is at $32.55, down $0.52

Wheat futures are showing steady to 2 cents lower trade in most contracts at midday, with KC the strongest. Analysts are expecting to see 250,000-550,000 MT in all wheat export sales of old crop during the week of 12/21 in Friday’s USDA Export sales report, with none seen for new crop sales. Last week’s report showed robust sales of 796,300 MT for the week ending 12/14. The winter wheat crop in areas with little snow cover in the Central-Southern Plains could be at risk this weekend, with sub-zero temps likely. This is helping to limit the losses in HRW contracts.

Mar 18 CBOT Wheat is at $4.26 1/2, down 1 1/2 cents,

Mar 18 KCBT Wheat is at $4.25 1/2, unch ,

Mar 18 MGEX Wheat is at $6.19 3/4, down 1 1/2 cents

Live cattle futures are showing strong trade on Thursday, with most nearby contracts higher by triple digits. Feeder cattle futures are also in the green at midday, with nearby Jan up $1.025. The CME feeder cattle index on December 26 was down 36 cents to $148.36. Wholesale boxed beef values were mixed on Thursday morning. Choice was up 15 cents at $201.75, with select down 26 cents at $190.57. Estimated FI cattle slaughter was 209,000 head through Wednesday. That is 29,000 head fewer than the same week last year. Cash trade has been slow to develop this week, but could be seen as higher than last week’s $120, with the soon to expire Dec contract currently at $124.10.

Dec 17 Cattle are at $124.100, up $2.075,

Feb 18 Cattle are at $122.225, up $1.225,

Apr 18 Cattle are at $122.925, up $1.225,

Jan 18 Feeder Cattle are at $146.200, up $1.025

Mar 18 Feeder Cattle are at $142.675, up $0.950

Apr 18 Feeder Cattle are at $143.250, up $0.950

Lean hog futures are mixed at midday, with nearby Feb 20 cents higher and back months steady to lower. The CME Lean Hog Index for 12/26 was down 3 cents to $61.59. The USDA pork carcass cutout value was up 3 cents at $77.5 in the Thursday AM report. The rib and picnic were the only cuts reported lower. The national base hog price was 2 cents lower at $57.36 on Thursday morning. 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 are at $71.225, up $0.200,

Apr 18 Hogs are at $75.300, up $0.025

May 18 Hogs are at $79.800, down $0.100

Cotton futures are currently 19 to 22 points in the red in most contracts at midday. The weekly Export Sales report is delayed until Friday, with most expecting sales to slow down from last week’s 326,520 RB. Online cash sales jumped to 28,905 bales reported on the Seam, with an average price of 70.78 cents/lb on December 27, 145 points lower than the previous day. The Cotlook A index was reported at 50 points lower than the previous day at 88.10 cents/lb on December 27. The current AWP is at 68 cents/lb and should be updated on Thursday.

Mar 18 Cotton is at 78.75, down 20 points,

May 18 Cotton is at 78.73, down 19 points

Jul 18 Cotton is at 78.85, down 20 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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