AgriCharts Market Commentary

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.

Corn

Corn futures are trading 1 to 2 cents higher in the nearby contracts on Wednesday. This morning’s EIA report showed ethanol production dropping 19,000 barrels per day from the previous week. That number was still robust at 1.089 million bpd produced during the week of 12/8, the second largest weekly production number on record. Stocks of ethanol fell 170,000 barrels to 2.374 million barrels, while the Gulf and Midwest stocks were up. The USDA tightened the cash average farm price on Tuesday by 10 cents to a range of $2.85-3.55, with the expected average remaining at $3.20. Export sales of corn for the week ending 12/7 are expected to be 0.7-1.1 MMT in tomorrow’s USDA report.

Dec 17 Corn is at $3.37 1/4, up 1 1/2 cents,

Mar 18 Corn is at $3.49 1/2, up 1 3/4 cents,

May 18 Corn is at $3.57 3/4, up 1 3/4 cents

Jul 18 Corn is at $3.66, up 1 1/2 cents

Soybeans

Soybean futures are showing gains of 1-2 cents in most contracts at midday. December meal is up 90 cents/ton, with nearby bean oil down 24 points. The cash average soybean price range was narrowed 30 cents to $8.60-$10.00, leaving the average mid-point at $9.30. Estimates for Thursday’s Export Sales report are running 1.4-2 MMT for old crop soybeans, with 0-100,000 MT for new crop expected by analysts. Brazil’s ABIOVE expects the country’s crop to hit 109.5 MMT in 17/18. They are also projecting exports in 2017 to be at 67.8 MMT, with exports of 65 MMT in 2018.

Jan 18 Soybeans are at $9.77, up 1 1/4 cents,

Mar 18 Soybeans are at $9.88 1/4, up 1 cent,

May 18 Soybeans are at $9.99 1/2, up 1 1/4 cents,

Jul 18 Soybeans are at $10.09, up 1 1/4 cents,

Dec 17 Soybean Meal is at $323.80, up $0.90

Dec 17 Soybean Oil is at $33.12, down $0.24

Wheat

Wheat futures are mostly 2 to 4 1/2 cents higher at midday, with nearby Dec showing thin trade ahead of Thursday’s expiration. The USDA narrowed the cash average price range for wheat by 20 cents to $4.50-$4.70, as the mid-point was left at $4.60. Analysts are expecting tomorrow’s USDA Export Sales report to show 250,000-450,000 MT in wheat export sales for the week ending December 7. Iraq is seeking 50,000 MT of US, Australian, and Canadian wheat, with the tender to close on December 19. The French AgriMer trimmed their projection for wheat exports outside of the EU by 0.4 MMT to 9.5 MMT.

Mar 18 CBOT Wheat is at $4.15, up 4 1/4 cents,

Mar 18 KCBT Wheat is at $4.14 3/4, up 3 1/2 cents,

Mar 18 MGEX Wheat is at $6.09, up 3 1/2 cents

Cattle

Live cattle futures are trading 17.5 to 50 cents in the red at midday. Feeder cattle futures are 55 to 75 cents lower in the nearby contracts. The CME feeder cattle index on December 11 was down 43 cents to $153.89. Wholesale boxed beef values were lower on Wednesday morning. Choice was down $1.05 at $203.01, with select 11 cents lower at $185.81. Estimated week to date FI cattle slaughter was 236,000 head through Tuesday, 3,000 head fewer than the previous week but 6,000 head larger than the same week last year. This morning’s FCE auction showed 75 of the 704 head sold at a price of $116, with 3 other lots passing on offers of $116.

Dec 17 Cattle are at $115.975, down $0.175,

Feb 18 Cattle are at $118.750, down $0.400,

Apr 18 Cattle are at $120.475, down $0.500,

Jan 18 Feeder Cattle are at $146.350, down $0.750

Mar 18 Feeder Cattle are at $144.750, down $0.550

Apr 18 Feeder Cattle are at $144.650, down $0.675

Lean Hogs

Lean hog futures are showing mixed trade on Wednesday, with the front months 7.5 to 12.5 cents higher and back months lower. The CME Lean Hog Index for 12/11 was down 20 cents to $64.97. The USDA pork carcass cutout value was down $4.59 at $81.12 in the Wednesday morning report. The loin and picnic were higher, with the ham down $8.19 and the belly $16.34 lower. The national base hog price was 54 cents lower at $57.58 this morning. The WCB was down $1.24, with the IA/MN region $1.01 lower. The USDA daily FI hog slaughter was 932,000 head WTD through Tuesday. That was up 1,000 head from the previous week and 49,000 head more than the same week last year.

Dec 17 Hogs are at $63.825, up $0.075,

Feb 18 Hogs are at $66.650, up $0.125

Apr 18 Hogs are at $71.250, up $0.075

Cotton

Cotton futures are currently posting gains of 93 to 120 points on Wednesday. The Federal Reserve is expected to increase interest rates this afternoon, with the announcement expected out at 1:00 p.m. CST. The average farm cash price range was raised 3 cents to 63-69 cents, with the mid-point up to 66 cents/lb in the WASDE report . On the world side, production in India was trimmed 0.5 MMT, and Pakistan was down 0.95 MMT. The Cotlook A index was down 75 points from the previous day to 83.45 cents/lb on December 12. Online cash sales of cotton rose to 21,066 bales on the Seam, with prices 79 points higher at 69.23 cents/lb.

Mar 18 Cotton is at 74.11, up 120 points,

May 18 Cotton is at 74.53, up 103 points

Jul 18 Cotton is at 74.8, up 93 points


Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com