AgriCharts Market Commentary

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Corn Market News and Commentary

Corn futures managed to close the Tuesday session with 1 to 1 3/4 cent gains in most nearby contracts. The weekly EIA report showing ethanol production and stocks for the week of 12/14 will be released on Wednesday. DTN’s national cash average for corn was reported at $3.49 on Monday evening. That puts national basis at -35 cents, 3 1/4 stronger than last year, which is a function of the export program and projections for tighter year end stocks. Ukraine’s UZA estimates corn exports at 27 MMT for 18/19, vs. the USDA at 28 MMT.

Mar 19 Corn closed at $3.85 1/2, up 1 1/2 cents,

May 19 Corn closed at $3.93 1/2, up 1 3/4 cents,

Jul 19 Corn closed at $4.00, up 1 3/4 cents

Sep 19 Corn closed at $4.01 1/4, up 1 1/2 cents

--provided by Brugler Marketing & Management

Soybeans Market News and Commentary

Soybean futures settled the day with most contracts 2 to 3 1/4 cents higher. Nearby soy meal was up $1.30/ton, with soy oil 24 points higher. As of Monday evening, DTN reported a national average soybean cash price of $8.18 1/2. That pegged the national basis 15 cents weaker than a year ago at -86 1/4 cents. It has improved dramatically since September, and some locations firmed a nickel yesterday or today on fresh export potential. Wire reports rumored Chinese buying of an unspecified additional quantity of US soybeans, any purchases over 100,000 MT should be reported by the USDA’s daily system tomorrow morning. There are also rumblings about drought stress in parts of Parana (Brazil).

Jan 19 Soybeans closed at $9.07 3/4, up 3 cents,

Mar 19 Soybeans closed at $9.20 3/4, up 2 3/4 cents,

May 19 Soybeans closed at $9.34, up 2 1/2 cents,

Aug 19 Soybeans closed at $9.50 1/4, up 3 1/4 cents,

Jan 19 Soybean Meal closed at $310.40, up $1.30,

Jan 19 Soybean Oil closed at $28.41, up $0.24

--provided by Brugler Marketing & Management

Wheat Market News and Commentary

Wheat futures ended the Turnaround Tuesday session with most CBT and KC contracts 2 to 5 cents lower. MPLS was down 5 to 8 1/2 cents. Now that we’ve switched to nearby March, the front month CBT-KC spread is down to 15 1/2 cents. That is likely a result of strengthening HRW exports. It was briefly over 40 cents. Japan’s weekly Ministry of Ag tender is for 71,040 MT of US and 35,060 MT of Canadian wheat, with the tender to close on Thursday. A Ukrainian grain traders union estimates the country’s wheat exports for 18/19 at 16 MMT (USDA currently @ 16.5 MMT), with 19/20 exports projected at 18 MMT.

Mar 19 CBOT Wheat closed at $5.32 3/4, down 2 1/2 cents,

Mar 19 KCBT Wheat closed at $5.17 1/4, down 4 3/4 cents,

Mar 19 MGEX Wheat closed at $5.76 3/4, down 8 1/2 cents

--provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures saw 45 cent to $1.025 gains in the nearby contracts on Tuesday. Feeder cattle futures were up 60 cents to $1.025 on the day. The CME feeder cattle index was down 65 cents on December 17 at $145.55. Wholesale beef prices were higher on Tuesday afternoon. Choice boxes were up a penny at $212.68, with the Select cutout value 97 cents higher at $204.73. USDA estimated FI cattle slaughter at 120,000 head on Tuesday. That brought the WTD total to 228,000 head, 13,000 below last week and 9,000 head fewer than the same week last year. Wednesday’s FCE online auction shows just 255 head for sale, all from KS. Analysts estimate that the December 1 cattle on feed number will be tallied at 11.3724 million head on Thursday, up 1.8% from a year ago.

Dec 18 Cattle closed at $119.775, up $0.750,

Feb 19 Cattle closed at $122.575, up $1.025,

Apr 19 Cattle closed at $124.600, up $0.750,

Jan 19 Feeder Cattle closed at $146.200, up $0.825

Mar 19 Feeder Cattle closed at $144.300, up $0.975

Apr 19 Feeder Cattle closed at $144.950, up $0.850

--provided by Brugler Marketing & Management

Lean Hogs Market News and Commentary

Lean Hog futures posted triple digit losses in the front months, with most other contracts 65 to 95 cents lower. The CME Lean Hog Index was down 4 cents from the previous day @ $55.13 on December 14. The USDA pork carcass cutout value was up just 4 cents at $72.00 on Tuesday afternoon. The belly and loin primal cuts were reported lower. The national base cash hog carcass value was 36 cents lower at a weighted average of $45.86 this afternoon. USDA estimated Tuesday’s FI hog slaughter at 477,000 head, bringing the weekly total to 954,000 head. That was 4,000 head lower than the previous week but 12,000 head above a year ago. Some trade estimates call for the hog herd to be 102.4% of year ago when USDA issues the Hogs & Pigs report on Thursday.

Feb 19 Hogs closed at $62.650, down $1.175,

Apr 19 Hogs closed at $67.825, down $1.150

May 19 Hogs closed at $73.700, down $0.950

--provided by Brugler Marketing & Management

Cotton Market News and Commentary

Cotton futures were down 56 to 69 points in the nearby contracts on Tuesday. Crude oil saw sharp $3.64/barrel losses on the day, causing synthetics to pressure the cotton market lower. The Fed will announce whether they will raise interest rates on Wednesday afternoon. They are expected to hike short term rates by 0.25%, though future hikes are in question following Chairman Powell’s comments last month. President Trump is on record as saying no rate hike is needed from his perspective. The Cotlook A index was up 5 points from the previous day on Dec 17 at 87.80 cents/lb. The weekly USDA AWP was updated to 69.77, good through Thursday.

Mar 19 Cotton closed at 77.850, down 69 points,

May 19 Cotton closed at 79.040, down 68 points

Jul 19 Cotton closed at 80.080, down 56 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