Ag Market Commentary

Corn futures ended the Wednesday session with most contracts 3 to 4 1/2 cents lower. Despite higher crude prices, ethanol was lower, squeezing margins even tighter. A stronger dollar and general selling in the grains also weighed on market. 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 reached 16.988 MMT (668.79 mbu) for this MY, 72.26% larger than the same point in 2017.

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

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

Jul 19 Corn closed at $3.88 3/4, down 4 cents

Sep 19 Corn closed at $3.91 1/4, down 3 1/2 cents

--provided by Brugler Marketing & Management

Soybean futures posted 13 to 14 cent losses in the most contracts on Wednesday, pressured by weak export data. Nearby soy meal was down $4.10/ton, with soy oil 38 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. A US trade delegation is headed to China for the week of January 7 to hold trade talks. This would be the first talks face to face since the G-20 in Argentina.

Jan 19 Soybeans closed at $8.70, down 14 cents,

Mar 19 Soybeans closed at $8.83, down 14 cents,

May 19 Soybeans closed at $8.96 1/4, down 13 1/2 cents,

Aug 19 Soybeans closed at $9.14 1/4, down 13 1/4 cents,

Jan 19 Soybean Meal closed at $303.40, down $4.10,

Jan 19 Soybean Oil closed at $27.36, down $0.38

--provided by Brugler Marketing & Management

Wheat futures were down 5 to 7 1/2 cents in CBT and KC markets on Wednesday, with MPLS 9 to 12 1/4 cents lower following the holiday. The dollar was higher on the day. 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 closed at $5.10, down 6 1/2 cents,

Mar 19 KCBT Wheat closed at $4.95 1/2, down 7 cents,

Mar 19 MGEX Wheat closed at $5.49 1/4, down 12 1/4 cents

--provided by Brugler Marketing & Management

Live cattle futures closed the day mixed. December was up 47.5 cents ahead of next Monday’s expiration. Feeder cattle futures were up 15 to 75 cents on Wednesday. The CME feeder cattle index was up 5 cents on December 25 at $147.71. Wholesale boxed beef prices were higher on Wednesday afternoon. Choice boxes were up $1.64 at $215.69, with Select a dime higher at $207.60. Cash cattle trade will likely wait until later this week due to the holiday. USDA estimated Wednesday’s FI cattle slaughter at 119,000 head, bringing the weekly total to 135,000 head. The winter storm coming through the Plains into the Midwest has some potential to disrupt movement, depending on icing and local snow accumulations. The weekly total will be lower in any event because of the Tuesday holiday.

Dec 18 Cattle closed at $121.350, up $0.475,

Feb 19 Cattle closed at $122.750, down $0.025,

Apr 19 Cattle closed at $125.250, up $0.025,

Jan 19 Feeder Cattle closed at $148.100, up $0.725

Mar 19 Feeder Cattle closed at $145.775, up $0.225

Apr 19 Feeder Cattle closed at $146.500, up $0.200

--provided by Brugler Marketing & Management

Lean Hog futures were steady to 60 cents higher in most contracts 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 down 69 cents on Wednesday afternoon at an average weighted price of $70.63. The national base cash hog carcass value was 44 cents higher on Wednesday, with a weighted average of $44.53. FI hog slaughter was estimated at 480,000 head on Wednesday, with the WTD total at 555,000 head. A winter storm in the Midwest is being watched for any hog transportation delays.

Feb 19 Hogs closed at $60.375, up $0.075,

Apr 19 Hogs closed at $67.200, up $0.100

May 19 Hogs closed at $73.975, up $0.600

--provided by Brugler Marketing & Management

Cotton futures settled Wednesday with most contracts up 74 to 95 cents, helped out by short covering after sharp losses the past several sessions. Crude oil was up more than 8%, with the US dollar also higher. The Dow had its largest single day rally (in points, not %) ever. 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 closed at 73.500, up 95 points,

May 19 Cotton closed at 74.730, up 93 points

Jul 19 Cotton closed at 75.780, up 74 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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