AgriCharts Market Commentary

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Corn Market Lower Ahead of Export Data

Corn futures start off your Thursday steady to 1 1/2 cents per bushel lower. Corn futures finished yesterday 2 1/2 to 3 1/4 cents in the red, facing larger ethanol stocks and pessimism about export sales during Thanksgiving week. Estimates ahead of the USDA report for weekly export sales range from 500-900 thousand MT. The weekly EIA report stated ethanol plants produced 1.060 million barrels per day through the week ending 11/29. That was up 1,000 bpd from the previous week and closing out the average monthly production through November at 1.039 mbpd. Ethanol stocks rose by 362,000 barrels to 20.639 million barrels. There were 129 delivery notices against December futures overnight, with the oldest long now dated 8/28/19.

---provided by Brugler Marketing & Management

Soybean Market 1 to 2 Cents Higher Overnight

Soybeans are 1 to 2 cents per bushel higher ahead of the weekly USDA export sales report. On Wednesday soybean futures were up by as much as 7 cents. Beans saw some net new buying interest in the old crop contracts, with preliminary open interest rising 9,382 contracts overall. The national soybean basis from cmdtyView was at -0.5828 yesterday, last Wednesday the basis was at -0.6009 cents per bushel. December 2018 national soybean basis averaged -.8032. Thus, we’re 32 cents stronger than a year ago, but with the recent board weakness cash prices are up only a few cents. .Soybean meal futures closed $2.10 higher, with soy oil futures closing 28 points higher. Traders are looking for the Stats Canada report on Friday to show Canadian canola production of 19.6 MMT, up from 19.36 MMT in September. Trader estimates for weekly soybean export sales range from 700,000-1.3 MMT, meal is anticipated to range from 100-300,000 MT, and oil is seen from 5-25 thousand metric tonnes in this morning’s USDA report.

--- provided by Brugler Marketing & Management

Wheat Markets Higher, Led by MPLS For a Change

So far this morning the wheat markets are in plus territory. The KC and CHI futures are 1 to 2 cents higher. MPLS spring wheat is up 2 to 3 cents, with expiring (next week) December up 8 ½. USDA’s export sales report is expected to show 300,000-700,000 MT booked in the week ending November 28. The wheat market settled higher last evening. Chicago SRW futures led the way, having gained 1 1/2 to 4 1/2. The Chicago wheat premium was at $1.09 1/2 to KC and 41 1/2 cents to MPLS. Kansas City futures were up 2 3/4 to 4 1/2. MGE HRS wheat gained 1 1/2 to 2 1/4 cents. There have still been zero deliveries vs. December SRW futures. Russian farmers planted an estimated 18.2 million ha (44.97 million acres) of winter wheat for the 2020 crop, which is up 3.4% from last year’s 43.49 million acres.

--- provided by Brugler Marketing & Management

Cattle Futures Down As Basis Firms

Live cattle futures were down triple digits on Wednesday. December through Apr futures were down $1.10 to $1.47, with Dec options expiring tomorrow. Feeder cattle futures were also down by triple digits, to the tune of -$1.50. The 12/03 CME Feeder Cattle index was $145.19 after gaining 16 cents. Wholesale boxed beef prices were again lower. The Choice/select spread is tightening seasonally. Choice boxes were shown at $226.95, after dropping $3.20. Select boxes were at $210.31 following a $2 per cwt drop. The FCE online cattle auction sold 860 of the 1,189 head listed, at a weighted average price of $118.36. Prices ranged from $118-119.50. USDA reported cash sales in the country of $118- 119.50, accompanying dressed sales of >$187.00; for a weighted average of $190.51. JBS plans on investing $1.9 billion USD into Brazilian meat expansion, with the goals being to match growing domestic demand and increase export viability. USDA estimated the week to date FI cattle slaughter at 361,000 head through Wednesday, last week was 341,000 head (ahead of the holiday) and the same week last year was at 360,000.

---provided by Brugler Marketing & Management

Lean Hogs Mixed, Looking For China Export Data

Lean hog futures were mixed on Wednesday, Dec futures retreated again. However, Feb and Apr futures made gains of 5 and 47 cents. The CME Lean Hog Index was 3 cents higher @ $57.35. The Wednesday pork carcass cutout value was $81 flat after a $0.39 recovery. Primal cuts were mostly lower, with ham and belly cuts seen higher. USDA’s national average base hog price for 12/04 was higher again, up by 71 cents to $46.50. USDA’s weekly total estimate for FI hog slaughter through Wednesday was 1.486 million head, 21,000 head above last week’s pace. There is keen interest in the size of weekly pork exports to China.

---provided by Brugler Marketing & Management

Cotton Market Higher Ahead of USDA Export Data

Overnight action in the cotton market was 16 to 28 points higher ahead of the USDA weekly export sales report. The board is showing a single December futures trade 153 points above yesterday. Somebody got caught on the wrong side during deliveries? Yesterday cotton futures were 10 to 80 points higher. The Seam Reported 3,856 bales sold on 12/03, for an avg. gross price of 53.92 cents per. The certified stocks of number 2 cotton for delivery declined from 85,257 bales to 66,048 after a decert of 19,569 bales. The Cotlook A Index was 40 more points lower to 74.15 cents per pound on Dec 3rd. The AWP will be updated from 56.20 cents /lb later this afternoon.

---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