AgriCharts Market Commentary

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Corn Market Higher Overnight

Corn is trading 1 to 1 1/2 cents higher here on Friday morning. Yesterday, corn futures were higher at midday but settled with losses of 1 3/4 to 3 1/4 cents in the front month. USDA weekly corn export sales were reported at 546,115 MT for the week ending 11/28. That was 53.62% below last year. Accumulated exports have reached 6.344 MMT with two days remaining in the first quarter. Census data for monthly corn exports showed that October corn shipments were 90.7 mbu, a 59.27% decrease from last October but up 13.59% from September. Ethanol monthly exports were at 112.822 million gallons, which was 65.89% of last October’s record, but middle of the road vs. the last 7 years. Due in part to the low ethanol production, DDG exports were just 759,979 MT.

---provided by Brugler Marketing & Management

Soybean Market Up 6 to 7 Cents on Meal Rally

Soybean futures are 6 to 7 cents per bushel higher this morning. They settled more than 6 cents per bushel higher on Thursday for the bulls’ first winning streak in a while. Soybean meal futures closed with a gain of $4.90/ton to boost the beans by improving crush margins. Soy oil futures were also 2 points higher. Census October soybean exports were 218.43 mbu, which is 52.82% larger than Sept and 8.9% above shipments from a year ago. Additionally, the Census report showed October was the largest monthly soybean exports for any month back to December of 2017. Soybean meal shipments in October were an all time high for the month, at 1.033 MMT and also the highest monthly shipments since April. The Export Sales reported showed bookings below trade estimates, with net sales of 683,783 MT through the week ending 11/28. Sales were down 41.1% from last week and broke the 4-week streak of 1+ MMT weekly sales. Weekly shipments 1.498 MMT. China accounted for 1.23 MMT a 68.268% share of the total. Their weekly share has averaged 37.099% through the MY. The latest data pushed the accumulated shipments to China up to 6.581 MMT, which is well above last year.

--- provided by Brugler Marketing & Management

Wheat Up 2 to 4 Cents, With MPLS in the Lead

The three US wheat futures markets are 2 to 4 cents higher this morning, led by Minneapolis spring wheat. Wheat futures closed the Thursday session with losses. KC was down 5 to 5 3/4 cent losses, while Chicago SRW was close behind, 2 1/4 to 3 3/4 cents in the red. MGE wheat was also lower, showing 3/4 to 2 1/2 cent drops on the day (disregarding illiquid Dec which expires a week from today). Census data showed that 2.143 MMT of wheat was exported during October. The 78.74 mbu was a 6-year high for October wheat exports. From June through October, each month of the MY has been above the corresponding month of last year. Weekly export sales data from the USDA showed that 228,086 MT of wheat sales in the week ending 11/28. Those sales were 68% below the same week last year. HRW accounted for nearly 70% of the weekly sales. Accumulated MY exports for all wheat are 12.38 MMT, and 22.86% above last year’s pace. Japan purchased 160,640 MT of wheat in their weekly MOA tender, with 91,220 MT from the US.

--- provided by Brugler Marketing & Management

Cattle Market Looks Past Slow October Exports

December Live cattle options expire today, yesterday live cattle futures retreated from triple digit gains, but still finished in the black. Feeder cattle futures however turned southward after midday gains and ended with 27 to 32 cent losses in the front months. The 12/04 CME Feeder Cattle index was $144.53, dropping by 66 cents. USDA weekly beef export sales were 12,181 MT across both years, which was 54.33% lower than the week prior, but only 4.43% less than the same week last year. Wholesale boxed beef prices were again lower. Choice boxes showed a $1.35 drop, and select boxes were $2.19 lower. Monthly Census data put October beef shipments at 248.6 million lbs. Cash sales of $119 were reported in KS and TX on Thursday. USDA estimated the week to date FI cattle slaughter at 477,000 head through Thursday, compared to the same week last year which was at 482,000.

---provided by Brugler Marketing & Management

Lean Hog Futures Split With Cash Action

Lean hog futures finished Thursday with $0.30 to $1.25 drops. The cash market was going the other way. The CME Lean Hog Index for 12/03 was up $0.82 @ $58.20. The USDA pork carcass cutout value was up another $0.36 to $81.36. USDA’s national average base hog price for 12/05 was 78 cents higher at $46.46. USDA’s latest update for weekly pork export sales showed 29,196 MT for the week ending 11/28. Shipments through the same week were at 33,114 MT – a 21.8% reduction wk/wk, but 18.8% higher than the same week last year. The accumulated export shipments, according to the same USDA report, are at 1.448MMT which is 37% above last year. Of the total, 302,416 MT (or 20.88%) have gone to China. That is a 1358% increase yr/yr, as the 6-year average pork exports to China for the entire year are 54,534 MT. Using USDA conversions with Census data, pork shipments for the month of October were tallied at 520.9 million lbs, a record for the month. Census data picks up pork cuts not reported in the weekly sales data, but lags. USDA’s weekly total estimate for FI hog slaughter through Thursday was 1.982 million head.

---provided by Brugler Marketing & Management

Cotton Market Up 29 to 51 Points Overnight

Cotton futures were 29 to 51 points higher overnight. Cotton ended the Thursday session with losses of 4 to 19 points, disregarding soon to expire (Friday) December. The Monthly export data from Census showed cotton shipments for October were 731,611 480 lb bales, which is 19.6% below September shipments, but was an 11-year high for the month and the 3rd largest October total on record. Weekly Export Sales data from the USDA listed 165,903 RB of cotton export sales on the week. Through the same week ending 11/28 shipments were 166,737 RB bringing the accumulated weekly shipments to 3.099 million RB, which is 15.38% above last year. The Seam reported 10,097 bales sold on Dec 4th, bringing the weekly total to 21,608 bales. The Cotlook A Index was 65 more points lower at 73.50 cents per pound on Dec 4th. The weekly AWP was reduced to 55.97 cents/lb. That was a 23 point drop from the previous week.

---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