AgriCharts Market Commentary

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Corn on a Midday Rally

Corn is making a big leap with the lower market volume on Thursday. Futures are plus 6 1/4 at midday, with Dec futures, expiring on Friday, showing a 7 1/2 midday move. The USDA announced private export sales of 110,744 MT of corn to unknown for 19/20 and 1.6 MMT of corn to Mexico this morning (1.074 MMT for 19/20 delivery and 525k MT for 20/21 delivery). That’s the 5th largest daily sale of corn on record. Export bookings for the week ending 12/05 were above what traders had anticipated with the USDA reporting 873,525. Shipments through the same week were at 531,371 MT, which was 7.4% above last week, but still 44.19% below the same week last year. For reference, last week was 57.58% behind it’s respected week a year ago. Accumulated shipments were listed at 6.876 MMT through the first 14 weeks of the MY.

Dec 19 Corn is at $3.65 1/4, up 7 1/2 cents,

Mar 20 Corn is at $3.77 1/2, up 6 1/4 cents,

May 20 Corn is at $3.84 1/4, up 6 1/4 cents,

Jul 20 Corn is at $3.90, up 6 1/4 cents,

---provided by Brugler Marketing & Management

Soybeans Higher in Morning Action

So far beans are seeing 3 1/2 cent to 4 1/4 cent increases in the front months. Soymeal futures are gaining 20 cents/ton at midday, while soy oil futures are up 65 points. Weekly Export Sales data from the USDA showed soybean bookings for the week ending 12/05, were at the top end of trader estimates, with 1.05 MMT of current year sales, and total sales (including next MY) at 1.175 MMT. That was a 71.9% increase over last week, and a 59.1% increase over the same week last year for total net sales. Weekly shipments through the same week were at 1.443 MMT, a 4% decrease from last week and a 32.4% increase yr/yr. Trade was anticipating the weekly update to show 125-300k MT for soybean meal and the USDA report showed 257,668 MT of total meal bookings. As for bean oil, Bookings were just above the expected 8k-30k MT, with the report indicating 30,227 MT of sales through the week ending 12/5.

Jan 20 Soybeans are at $8.97 3/4, up 4 1/4 cents,

Mar 20 Soybeans are at $9.12, up 4 cents,

May 20 Soybeans are at $9.25 1/4, up 3 1/2 cents,

Jul 20 Soybeans are at $9.38 1/2, up 3 1/2 cents,

Dec 19 Soybean Meal is at $293.10, down $0.20

Dec 19 Soybean Oil is at $31.88, up $0.65

--- provided by Brugler Marketing & Management

Wheat Market Higher at Midday

Wheat is gaining double digits at midday, Chicago SRW futures are leading the way with gains of 9 to 13 cents. KC wheat futures are higher by 9 to 11 at midday, and MPLS HRS wheat futures are posting midday gains of 6 to 9 cents. Wheat bookings for the week ending 12/05 were 25.67% above market anticipation, with the USDA reporting 502,674 MT of weekly wheat sales. Those sales are 66.66% below the same week last year. Net sales were led by HRS wheat, which had 219,303 MT of weekly bookings, White wheat had 137,251 MT, with weekly export sales of 109k MT for HRW. SRW bookings were 720% higher wk/wk, but were 29.085% behind their weekly average through the MY. Japan purchased 171,045 of wheat in their monthly tender, with the U.S. filling 50.22% of the total.

Mar 20 CBOT Wheat is at $5.30 3/4, up 11 1/2 cents,

Mar 20 KCBT Wheat is at $4.42 1/4, up 11 1/2 cents,

Mar 20 MGEX Wheat is at $5.24 1/2, up 6 1/4 cents,

--- provided by Brugler Marketing & Management

Cattle Market is Mixed to Mostly Lower at Midday

Live cattle futures are mixed, April futures were 30 cents higher at midday, with Dec and Feb posting 17 to 22 point losses. Feeder cattle futures are giving back some of yesterday’s triple digits gains, posting losses of as much as $0.60 in the front months. The 12/10 CME Feeder Cattle index was at $143 even following a 41-cent drop. Beef export sales for the week ending 12/05 were released this morning, and the USDA stated that 11,898 MT were sold. That was the second consecutive week with lower wk/wk sales and was 41.8% lower than the 5-week average. Within the same report, the USDA indicated that weekly shipments were 17,215 MT, which was a 17.68% increase over last week and only 9.7% below the 5-week average. Wholesale boxed beef prices are still on the decline, abiding by a (delayed) seasonal pattern of tightening the Choice/Select spread, which is currently at $13.37. Choice boxes were $2.04 lower this morning, while select boxes had dropped by $0.48. Cash cattle negotiations this morning show $118 bids in TX, with asks still in the $121-$122 range. FCE will hold a Friday sale this week, with showlists consisting of 977 head so far. The USDA estimates week to date FI cattle slaughter at 365,000 head through Wednesday.

Dec 19 Cattle are at $120.400, down $0.175,

Feb 20 Cattle are at $125.100, down $0.225,

Apr 20 Cattle are at $126.175, up $0.300,

Jan 20 Feeder Cattle are at $142.225, down $0.550

Mar 20 Feeder Cattle are at $143.075, down $0.600

Apr 20 Feeder Cattle are at $145.325, down $0.150

---provided by Brugler Marketing & Management

Hog Market Making a Triple Digit Move

Lean hog futures are higher by 47 cents to $1.07 at midday, with Dec futures posting a 15 cent gain. The 12/10 CME Lean Hog Index was at $59.46, after a 99-cent leap. Weekly export sales in pork were released by the USDA this morning, and the update for the week ending 12/05 showed 44,728 MT of bookings. That was a 53.2% increase over last week’s total net sales, and 33.8% higher than total export bookings through the same week last year. Shipments were shown at 38,245 MT on the week, which pushed accumulated shipments to 1.487 MMT. USDA’s pork carcass cutout value was $1.53 lower this morning. USDA’s national average base hog price for 12/12 was $0.52 higher to $48.57. USDA estimated FI hog slaughter through the week to be 1.474 million head, which is 12,000 head behind last week’s pace.

Dec 19 Hogs are at $60.850, up $0.150,

Feb 20 Hogs are at $68.800, up $1.075

Apr 20 Hogs are at $74.725, up $0.475

---provided by Brugler Marketing & Management

Thursday Cotton Making a Triple Digit Move

Cotton futures are in the black at midday, with gains of 72 to 106 points (minus illiquid Oct) in the front months. Weekly export sales data released from the USDA this morning showed that cotton sales were up 70% wk/wk with combined net sales shown at 283,676 RB, sales were also above the 5-week average of 277k RB. The report showed accumulated exports of cotton grew 6% to 3.286 MRB on the MY, which is 15.67% above last year’s pace. The Seam online cotton trading reported another very active day for 12/10 with 21,933 bales sold at an average gross price of 59.89 cents per bale. The Cotlook A Index regained yesterday’s 50 points and is back to 75.35 for 12/11. The weekly AWP is 55.97 cents/lb through this afternoon

Mar 20 Cotton is at 66.94, up 106 points,

May 20 Cotton is at 67.92, up 97 points

Jul 20 Cotton is at 68.47, up 72 points

Oct 20 Cotton is at 68.01, unch

---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