Ag Market Commentary

Corn futures are fractionally mixed at midday with nearby Dec up 1/4 cent. This morning’s EIA report showed another record week of ethanol production. It indicated that 1.108 million barrels per day was produced during the week of 12/1. That was 42,000 bpd larger than the previous week, as stocks also increased 500,000 barrels to 22.544 million barrels. US trade data from Census shows 93.6 million gallons of ethanol shipped during October, 8% larger than September. Expectations ahead of the Export Sales report are running 0.8 to 1.2 MMT for 17/18 corn sales. The Stats Canada report on Wednesday showed the country’s 2017 corn production at 14.095 MMT, which was near most expectations and 6.8% larger than last year.

Dec 17 Corn is at $3.40, up 1/4 cent,

Mar 18 Corn is at $3.53, down 3/4 cent,

May 18 Corn is at $3.61 1/2, down 3/4 cent

Jul 18 Corn is at $3.69 3/4, down 3/4 cent

Soybean futures are trading 7 to 8 cents lower in the front months following 2-3 cent gains this morning. December meal is down $2.40/ton, with nearby bean oil 26 points lower. The USDA issued a correction to a private export sale to China reported on Nov 30, lowering the total from 525,000 MT to 393,000 MT. Wednesday morning’s Stats Canada report put Canadian canola production at 21.313 MMT. That exceeded most analysts’ estimates and was an increase of 8.7% from the previous year. The soybean crop was at 7.717 MMT, just short of expectations but 16.6% larger than 2016 production. Analysts are expecting this week’s USDA Export Sales report to show sales of 1-1.5 MMT for 17/18 soybeans.

Jan 18 Soybeans are at $10.00 3/4, down 7 3/4 cents,

Mar 18 Soybeans are at $10.12 1/2, down 8 cents,

May 18 Soybeans are at $10.23, down 7 3/4 cents,

Jul 18 Soybeans are at $10.30 3/4, down 8 cents,

Dec 17 Soybean Meal is at $338.90, down $2.40

Dec 17 Soybean Oil is at $33.15, down $0.26

Wheat futures are showing 5 to 8 1/4 cent losses in most contracts at midday, following large Canadian production announced earlier today. This morning’s report from Stats Canada showed the country’s 2017 total wheat production hit 29.984 MMT. That was down 5.5 % from last year but exceeded the average projection of 28 MMT. Durum wheat was also reported higher than expectations at 4.962 MMT, down 36.1% from a year ago. All wheat weekly export sales are estimated to run 250,000-450,000 MT in Thursday morning’s USDA report.

Dec 17 CBOT Wheat is at $4.00 1/2, down 5 1/2 cents,

Dec 17 KCBT Wheat is at $4.06, down 8 1/4 cents,

Dec 17 MGEX Wheat is at $6.03 3/4, down 5 1/4 cents

Live cattle futures are currently 40 to 92.5 cents lower on Wednesday. Feeder cattle futures are showing $1.35 to $1.75 losses at midday. The CME feeder cattle index on December 4 was down 39 cents to $156.30. Wholesale boxed beef values were lower on Wednesday morning. Choice was down $2.26 at $206.82, with select $1.61 lower at $185.02. Estimated WTD FI slaughter was at 239,000 head through Tuesday, 1,000 above last week and 10,000 head larger than the same week last year. The online FCE auction again showed no sales on the 653 head, as 2 offers were passed by feedlots at $117.25 and $117.50. US export trade data from October shows a record for that month at 259.996 million pounds of beef shipped. That is 13.6% larger than a year ago and 7% above September.

Dec 17 Cattle are at $116.100, down $0.325,

Feb 18 Cattle are at $119.600, down $0.925,

Apr 18 Cattle are at $121.125, down $0.400,

Jan 18 Feeder Cattle are at $146.475, down $1.350

Mar 18 Feeder Cattle are at $144.400, down $1.350

Apr 18 Feeder Cattle are at $144.650, down $1.750

Lean hog futures are steady to 82.5 cents lower in the front months at midday. The CME Lean Hog Index for 12/4 was up 43 cents to $64.35. The USDA pork carcass cutout value was $1.34 lower at $83.44 in the Wednesday morning report. The belly and rib were the only cuts reported higher. The national base hog price was 16 cents lower at $59.34. The IA/MN region cash hog average was 95 cents lower, with the WCB down 32 cents. The USDA FI hog slaughter was estimated at 931,000 head through Tuesday. That is up 23,000 head from the previous week and 52,000 head more than last year. US Pork exports during October were a record 494.643 million pounds for the month. That was 9.6% larger than October 2016 and a 17.4% jump from the September Census report.

Dec 17 Hogs are at $64.200, down $0.075,

Feb 18 Hogs are at $69.675, down $0.825

Apr 18 Hogs are at $73.675, down $0.650

Cotton futures are trading 22 to 38 points higher on Wednesday, as Dec is showing thin trade ahead of today’s expiration. The USDA ag attache estimates Indonesian cotton imports of 3.391 million bales for 2016/17, which is up from 2.941 million bales in 2015/16. The 2017/18 imports are projected at 3.4 million bales. The FAS estimates that the imports from the US totaled 304,000 MT, which covers about 41.14% of the total. Online cash sales dropped to 13,670 bales reported on the Seam, as prices rose 46 points to 69.46 cents/lb. The Cotlook A index was down 70 points on December 5 to 82.95 cents/lb.

Mar 18 Cotton is at 72.89, up 38 points

May 18 Cotton is at 73.54, up 27 points

Jul 18 Cotton is at 73.930, up 22 points

Market Commentary provided by:

Brugler Marketing & Management LLC
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