Ag Market Commentary

Corn futures ended the Wednesday session with most contracts steady to fractionally higher. A stronger dollar limited gains. The weekly EIA report will be released on Friday this week due to the holiday. There was no USDA Grain Crush report this afternoon because of the government shutdown. Brazil exported 4.014 MMT of corn in December according to Trade Ministry data, which was slightly large than the 3.99 MMT for November and a year ago. They also exported 107.43 million liters (28.38 million gallons) of ethanol in Dec, down from November but well above last year. Dr. Michael Cordonnier trimmed his Brazilian corn production number by 1 MMT to 94 MMT.

Mar 19 Corn closed at $3.75 3/4, up 3/4 cent,

May 19 Corn closed at $3.83 1/2, up 1/2 cent,

Jul 19 Corn closed at $3.91, up 1/4 cent

Sep 19 Corn closed at $3.93 3/4, up 1/4 cent

--provided by Brugler Marketing & Management

Soybean futures posted 10 to 12 1/4 cent gains in most contracts on Wednesday, with first of the year buying coming in. Soymeal was up $4.80/ton, with soy oil 35 points higher to help the product values. Crude oil was up $1.21/barrel to help the soy oil market. Brazil soybean exports totaled 4.231 MMT during December according to the country’s Trade Ministry. That was down 16.58% from last month, but 79.62% above the same month in 2017. The record crop last year means supplies available later in the season than usual for export. Soymeal exports also outpaced last year (by 140%) at 1.61 MMT for the month, which was up 47.7% from November. Brazil’s 18/19 soybean production estimate from Dr. Michael Cordonnier was cut by 2 MMT to 119 MMT.

Jan 19 Soybeans closed at $8.94 3/4, up 12 1/4 cents,

Mar 19 Soybeans closed at $9.07, up 12 cents,

May 19 Soybeans closed at $9.19 1/2, up 11 3/4 cents,

Aug 19 Soybeans closed at $9.36, up 10 3/4 cents,

Jan 19 Soybean Meal closed at $311.00, up $4.80,

Jan 19 Soybean Oil closed at $27.90, up $0.35

--provided by Brugler Marketing & Management

Wheat futures saw gains of 1 to 5 1/2 cents in most contracts on Wednesday. A sharply higher US dollar is limiting much of a rally. Russia exported 4 MMT of wheat during December, down slightly from 4.1 MMT in November. Exports from July to Dec totaled 23.8 MMT according to consultant SovEcon. Ethiopia is tendering for 400,000 MT of wheat, with the tender to close on Jan 31. The partial government shutdown may push back the Winter Wheat seedings report scheduled for a week from Friday.

Mar 19 CBOT Wheat closed at $5.06 3/4, up 3 1/2 cents,

Mar 19 KCBT Wheat closed at $4.92 1/2, up 3 3/4 cents,

Mar 19 MGEX Wheat closed at $5.54, up 5 cents

--provided by Brugler Marketing & Management

Live cattle futures closed the Wednesday session with the front months lower and deferred contracts higher. Feeder cattle futures were mixed with most contracts lower. The CME feeder cattle index was down 15 cents on January 1 at $144.49. Wholesale boxed beef prices were higher on Wednesday afternoon, with the Chc/Select spread at $5.73/cwt. Choice boxes were up $1.29 at $216.64, with Select 25 cents higher at $210.91. USDA estimated this week’s FI cattle slaughter at 188,000 head through Wednesday. The weekly FCE online auction is not being held this week due to the New Year’s holiday.

Feb 19 Cattle closed at $123.525, down $0.350,

Apr 19 Cattle closed at $125.775, down $0.475,

Jun 19 Cattle closed at $117.150, up $0.075,

Jan 19 Feeder Cattle closed at $147.950, down $0.900

Mar 19 Feeder Cattle closed at $145.950, down $0.800

Apr 19 Feeder Cattle closed at $146.600, down $0.650

--provided by Brugler Marketing & Management

Lean Hog futures settled the day with most contracts steady to 72.5 cents higher. The CME Lean Hog Index was up 9 cents from the previous day @ $53.20 on December 31. The USDA pork carcass cutout value was down 15 cents on Wednesday afternoon at an average weighted price of $70.04. The Belly primal was up $2.15 on the day. The national base cash hog carcass value was up 93 cents on Wednesday, with a weighted average of $46.53. This week’s FI hog slaughter is estimated at 882,000 head through Wednesday by USDA. Another case of ASF was found on a large Chinese farm of 73,000 head.

Feb 19 Hogs closed at $61.700, up $0.725,

Apr 19 Hogs closed at $67.550, up $0.475

May 19 Hogs closed at $73.825, up $0.450

--provided by Brugler Marketing & Management

Cotton futures posted 105 to 136 point losses in most contracts on Wednesday. The front month continuous contract hit the lowest price in more than 13 months. The US dollar was sharply higher on the day, pressuring the market lower with a lack of export data to be supportive. The Cotlook A index was 25 points from the previous day on Dec 31 at 80.80 cents/lb. The ICAC continues to expect that Chinese cotton inventory will be at the lowest level since 2011/12 by the end of the marketing year (7.66 MMT). They lowered the midpoint of their average world price to 86.45 cents from 89 cents previously.

Mar 19 Cotton closed at 70.840, down 136 points,

May 19 Cotton closed at 72.250, down 125 points

Jul 19 Cotton closed at 73.580, down 105 points

--provided by Brugler Marketing & Management

Market Commentary provided by:

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Phone: 402-697-3623
Fax: 402-289-2353

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