Ag Market Commentary
BRUG - Thu Dec 06, 12:08PM CST

Corn futures are climbing back from losses earlier in the session to fractionally mixed at midday. USDA reported a private export sale of 198,120 MT of corn to Mexico this morning, with 106,680 MT for 18/19 delivery and the balance for 19/20. This morning’s delayed EIA report showed ethanol production in the final week of November at 1.069 million barrels per day. That was up 21,000 bpd from the week prior, as ethanol stockpiles rose 100,000 barrels to 23.030 million barrels. US census data released this morning showed October corn exports @ 5.695 MMT (224.19 mbu), more than double last year and the second largest ever for October. DDG exports were also the second most for October at 1.018 MMT, with ethanol exports an October record 175.41 million gallons.

Dec 18 Corn is at $3.73 1/2, down 3/4 cent,

Mar 19 Corn is at $3.84 1/2, up 1/4 cent,

May 19 Corn is at $3.91 3/4, up 1/2 cent

Jul 19 Corn is at $3.98, up 1/2 cent

--provided by Brugler Marketing & Management

Soybean futures are currently 2 to 3 1/2 cents lower on Thursday. They are well off their lows after nearly filling Monday’s gap. Nearby soy meal is down $1.20/ton, with soy oil 16 points lower. October exports of soybeans were reported at 5.58 million metric tonnes (205.04 mbu) by Census this morning. That was 72.37% larger than September but down 42.15% from last year. They also reported soybean meal exports of 1.004 MMT for October, a record for that month. Stats Canada released production estimates this morning, with 18/19 canola production seen at 20.343 MMT, down 4.62% from last year. Canadian soybean production is estimated at 7.267 MMT, 5.84% lower than last year.

Jan 19 Soybeans are at $9.10 1/2, down 3 cents,

Mar 19 Soybeans are at $9.22 3/4, down 2 3/4 cents,

May 19 Soybeans are at $9.35 3/4, down 2 1/2 cents,

Jul 19 Soybeans are at $9.47 1/4, down 3 cents,

Dec 18 Soybean Meal is at $310.70, down $1.20

Dec 18 Soybean Oil is at $28.41, down $0.16

--provided by Brugler Marketing & Management

Wheat futures are mostly 2 to 4 cents lower at midday, with the nearby Dec contracts showing thin trade ahead of next Friday’s expiration. Monthly trade data from Census showed that 1.904 MMT (69.97 mbu) of US wheat was exported in October. That was 4.6% larger than September and 45.42% above a year ago. Taiwan importers purchased 110,000 MT of US wheat in their tender on Wednesday. Japan’s weekly MOA tender also saw purchases of 143,643 MT of US, Canadian, and Australian wheat, with 62,975 MT US specific. Canadian wheat production for 18/19 is seen at 31.769 MMT according to Stats Can, up 5.95% from last year. Egypt’s GASC purchased 290,000 MT Russian and 60,000 MT Ukrainian wheat for Jan 21-31 delivery in their tender on Thursday, with no offers from the US.

Dec 18 CBOT Wheat is at $5.07, down 7 1/2 cents,

Dec 18 KCBT Wheat is at $4.76 1/2, down 7 1/4 cents,

Dec 18 MGEX Wheat is at $5.84 1/2, up 1/4 cent

--provided by Brugler Marketing & Management

Live cattle futures are mixed on Thursday, with nearby Dec up 12.5 cents. Feeder cattle futures are mostly lower at midday. The CME feeder cattle index was down 33 on December 4 at $146.39. Wholesale beef prices were mixed on Thursday morning, tightening the Ch/Se spread to $14.77. Choice boxes were down 43 cents at $212.83, with the Select cutout value $1.20 higher at $198.06. USDA’s estimated FI cattle slaughter is at 360,000 head WTD, up 4,000 head from last week and 2,000 head large than a year ago. Little cash trade has been reported so far this week outside of the FCE’s $117.50-118 on Wednesday. Bids are around $112-114 on Thursday.

Dec 18 Cattle are at $118.425, up $0.125,

Feb 19 Cattle are at $122.275, down $0.100,

Apr 19 Cattle are at $123.975, up $0.100,

Jan 19 Feeder Cattle are at $145.200, down $0.275

Mar 19 Feeder Cattle are at $142.975, down $0.075

Apr 19 Feeder Cattle are at $143.550, down $0.325

--provided by Brugler Marketing & Management

Lean Hog futures are down triple digits in the front months on Thursday. The CME Lean Hog Index was up 2 cents from the previous day @ $56.40 on December 4. The USDA pork carcass cutout value was up 11 cents on Thursday morning at $71.59. The national base cash hog carcass value was down 33 cents this morning at an average weighted price of $47.88. USDA’s FI hog slaughter was estimated at 477,000 head for Wednesday, bringing the WTD total to 1.422 million head. That was up 30,000 head from last week and 31,000 head larger than the same week last year.

Dec 18 Hogs are at $54.850, down $1.000,

Feb 19 Hogs are at $66.425, down $1.325

Apr 19 Hogs are at $71.025, down $1.100

--provided by Brugler Marketing & Management

Cotton futures are showing sharp losses at midday. There were hopes that China follows through with the commitments to buy more US ag goods. However, the appointment of hard line USTR Lightheizer as chief negotiator and the arrest of a Huawei executive yesterday seemed to dim prospects of a deal. October’s US cotton exports totaled 608,545 bales according to Census data, which was down 14.89% from last month but still 35.31% larger than a year ago. The Cotlook A index was UNCH from the previous day on Dec 5 at 87.80 cents/lb. The weekly USDA AWP is currently 67.92 cents/lb.

Mar 19 Cotton is at 79, down 215 points

May 19 Cotton is at 80.2, down 189 points

Jul 19 Cotton is at 81.090, down 169 points

--provided by Brugler Marketing & Management

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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