Ag Market Commentary

Corn futures are showing fractional losses at midday. The USDA Grain Crush report showed 525 million bushels of corn used for ethanol and other industrial uses in November. Of that, 475.7 million went to fuel ethanol production, which was up 1.2% from October and up 5.2% from November 2016. Corn exports out of Brazil during December totaled 3.99 MMT according to the country’s trade ministry. That is up 13.84% from November and nearly 4 times as large as December 2016. Soil moisture is expected to decline in southern Brazil, Argentina and Uruguay over the next week, driven by higher temps and limited rainfall during pollination.

Mar 18 Corn is at $3.52 3/4, down 1/2 cent,

May 18 Corn is at $3.61, down 1/4 cent,

Jul 18 Corn is at $3.69, down 3/4 cent

Sep 18 Corn is at $3.76 1/2, down 3/4 cent



Soybean futures are mostly 3 to 3 3/4 cents higher on Wednesday. Meal futures are up 80 cents/ton. Soy oil is seeing 35 point gains in the front month. USDA’s Fats & Oils report was expected to show November crush of about 174 million bushels. The trade guess was very close, with the actual number at 173.33 million bushels. Soy oil stocks on November 30 were 1.379 billion pounds. Argentine planting continues to lag in BA and La Pampa due to dry soils and high temps. Argentina has begun the phased unwinding of their soybean export tariff announced back in 2016. Brazil’s exports of soybeans during December totaled 2.36 MMT according to their Trade Ministry. That is slightly higher than November and nearly 4 times larger than the same month in 2016.

Jan 18 Soybeans are at $9.58 3/4, up 3 3/4 cents,

Mar 18 Soybeans are at $9.67 3/4, up 3 cents,

May 18 Soybeans are at $9.78 3/4, up 3 cents,

Jul 18 Soybeans are at $9.89, up 3 cents,

Jan 18 Soybean Meal is at $314.30, up $0.80

Jan 18 Soybean Oil is at $33.73, up $0.35



Wheat futures are mostly 1 to 3 1/2 cents higher in the nearby CBT and MPLS contracts, with KC leading the way up 5 to 6 cents. The March KC contract hit a 6 week high this morning. Frigid temperatures across the Plains this past weekend are supportive, but impacts from the sub-zero temps won’t be fully known until Spring. Ukraine grain exports from July to December totaled 21.36 MMT according to their Ag Ministry, which is 10% lower than the same time the previous year. Of that total export amount, 11.2 MMT consisted of wheat.

Mar 18 CBOT Wheat is at $4.36, up 2 1/2 cents,

Mar 18 KCBT Wheat is at $4.40 3/4, up 6 cents,

Mar 18 MGEX Wheat is at $6.21 1/2, up 3 1/2 cents



Live cattle futures are showing mixed trade on Wednesday following Tuesday’s gains. Feeder futures are steady to 20 cents lower at midday. The CME feeder cattle index on January 1 was $155.33, down 69 cents from the previous day. Wholesale boxed beef values were sharply higher on again on Wednesday. Choice boxes were on average $3.52 higher, with Select boxes up $2.36 per cwt. Estimated week to date FI cattle slaughter is 116,000 head. That is 3,000 head more than last week, but 14,000 fewer than the same week last year due to smaller numbers on both Monday and Tuesday. This morning’s FCE online auction saw no sales on the 388 head offered.

Feb 18 Cattle are at $122.625, down $0.725,

Apr 18 Cattle are at $124.175, up $0.075,

Jun 18 Cattle are at $115.450, up $0.275,

Jan 18 Feeder Cattle are at $149.325, down $0.200

Mar 18 Feeder Cattle are at $146.750, down $0.125

Apr 18 Feeder Cattle are at $146.900, down $0.025



Lean hog futures are mixed on Wednesday with nearby Feb UNCH at midday. The CME Lean Hog Index for 12/29 was up 51 cents at $62.23. The USDA pork carcass cutout value was down a penny in this morning’s report at $78.32. The belly and loin were the only cuts reported lower. The national base hog weighted average price was up $1.42 to $60.31. The USDA week to date FI hog slaughter was estimated at 460,000 million head. That is up 103,000 head from last week and 11,000 larger than the same week last year.

Feb 18 Hogs are at $70.725, unch,

Apr 18 Hogs are at $75.150, up $0.300

May 18 Hogs are at $79.550, down $0.250



Cotton futures are currently 58 to 61 points higher in most nearby contracts on Wednesday. The International Cotton Advisory Committee trimmed their expected world cotton ending stocks 0.25 MMT to 18.98 MMT. Most of that reduction came from a 0.31 MMT cut in projected world production. The USDA Adjusted World Price (AWP) was increased 262 points to 70.62 cents/lb on Thursday. The Cotlook A Index for January 2was 25 points lower at 89.35.

Mar 18 Cotton is at 78.09, up 59 points,

May 18 Cotton is at 78.35, up 58 points

Jul 18 Cotton is at 78.75, up 61 points






Market Commentary provided by:

Brugler Marketing & Management LLC
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Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
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