Ag Market Commentary

Corn futures are down 3 to 4 1/4 cents in most nearby contracts at midday. A stronger dollar and general selling in the grains is pressuring the market lower. The weekly USDA Export Inspections report was released this morning despite the partial government shutdown. It showed corn shipments of 996,098 MT during the week of 12/20, which was 12.4% larger than last week and 60.45% above this week a year ago. Accumulated inspections have hit 16.988 MMT (668.79 mbu) for this MY, 72.26% larger than the same point in 2017.

Mar 19 Corn is at $3.73 1/2, down 4 1/4 cents,

May 19 Corn is at $3.81 1/2, down 4 1/4 cents,

Jul 19 Corn is at $3.88 1/2, down 4 1/4 cents

Sep 19 Corn is at $3.91, down 3 3/4 cents

--provided by Brugler Marketing & Management

Soybean futures are trading 12 to 13 1/4 cents lower on Wednesday. Nearby soy meal is down $3.90/ton, with soy oil 34 points lower. This morning’s release of the Export Inspections report indicated that just 651,181 MT of soybeans were shipped in the week that ended on 12/20. That was 34% lower than the week prior and nearly half of what was reported in the same week last year. Of the total, just 367 MT was on its way to China. Shipments this MY have totaled 15.822 MMT (581.35 mbu), which is down 41.8% from a year ago. China announced lower import tariffs on 700 products this week, effective January 1. They included things like sunflower and canola meal (and whiskey!) but didn’t touch soybeans. Export tariffs were also cut on fertilizer.

Jan 19 Soybeans are at $8.70 3/4, down 13 1/4 cents,

Mar 19 Soybeans are at $8.83 3/4, down 13 1/4 cents,

May 19 Soybeans are at $8.97, down 12 3/4 cents,

Jul 19 Soybeans are at $9.10, down 12 1/2 cents,

Jan 19 Soybean Meal is at $303.60, down $3.90

Jan 19 Soybean Oil is at $27.40, down $0.34

--provided by Brugler Marketing & Management

Wheat futures are posting 6 to 10 cent losses in most contracts following the Holiday. USDA’s weekly Export Inspections report, released this morning, indicated that 543,126 MT of wheat was shipped in the week of 12/20. That was a drop of 20.71% from the week prior but 4.34% above the same week in 2017. Accumulated inspections are tallied at 12.259 MMT (450.46 mbu), which is 14.14% below this time last year. The European Commission trimmed their 18/19 soft wheat production estimate by 0.7 MMT to 128.5 MMT, with exports seen at 20 MMT.

Mar 19 CBOT Wheat is at $5.09 3/4, down 6 3/4 cents,

Mar 19 KCBT Wheat is at $4.96 1/2, down 6 cents,

Mar 19 MGEX Wheat is at $5.51 3/4, down 9 3/4 cents

--provided by Brugler Marketing & Management

Live cattle futures are mixed at midday, with front months slightly higher and deferred contracts lower. Feeder cattle futures are steady to 65 cents higher in the nearby contracts. The CME feeder cattle index was up $1.24 on December 21 at $147.13. Wholesale boxed beef prices were higher on Wednesday morning. Choice boxes were up 78 cents at $214.83, with Select 4 cents higher at $207.54. There will be no FCE auction this week due to the holiday. Cash cattle trade will likely wait until later this week due to the holiday. The winter storm coming through the Plains into the Midwest has some potential to disrupt movement, depending on icing and local snow accumulations.

Dec 18 Cattle are at $121.275, up $0.400,

Feb 19 Cattle are at $122.850, up $0.075,

Apr 19 Cattle are at $125.175, down $0.050,

Jan 19 Feeder Cattle are at $148.000, up $0.625

Mar 19 Feeder Cattle are at $145.675, up $0.125

Apr 19 Feeder Cattle are at $146.375, up $0.075

--provided by Brugler Marketing & Management

Lean Hog futures are steady to 75 cents higher on Wednesday. The CME Lean Hog Index was down 78 cents from the previous day @ $53.87 on December 20. The USDA pork carcass cutout value was up 30 cents on Wednesday morning at an average weighted price of $71.62. The national base cash hog carcass value not reported due to confidentiality this morning, with a 5-day rolling average of $44.41. Slaughter was not estimated on Monday with the USDA taking the Holiday off. A winter storm in the Midwest may cause some transportation delays later this week.

Feb 19 Hogs are at $60.525, up $0.225,

Apr 19 Hogs are at $67.325, up $0.225

May 19 Hogs are at $74.125, up $0.750

--provided by Brugler Marketing & Management

Cotton futures are showing 3 to 17 point gains at midday, after dropping nearly 9% the past 6 sessions. Crude oil is showing a bounce at midday, with the US dollar limiting short covering in cotton. Both the CFTC Commitment of Traders and Cotton-On-Call reports will not be released during the current government shutdown. The Cotlook A index was down 175 points from the previous day on Dec 24 at 81.65 cents/lb. The weekly USDA AWP was updated to 68.35 cents/lb, down 142 points from the previous prior.

Mar 19 Cotton is at 72.71, up 16 points,

May 19 Cotton is at 73.97, up 17 points

Jul 19 Cotton is at 75.07, up 3 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

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