Ag Market Commentary

Corn futures lost 1/4 to 3/4 cents to start November. The Buenos Aires Grain Exchange pegged this year’s corn planting progress at 40.2% of their 6.4 million hectares (15.815 million acres). At this time last year Argentine corn was 35.5% planted for their expected 6.3 mil hec (15.568 mil ac). The CFTC report from this afternoon showed that the managed money spec funds were still net short corn futures and options. They expanded their net short position, as of 10/29 by 9,282 contracts from the previous week. The IEG Vantage group estimated US corn yield increased to 168.6 bpa, raising their production forecast to 13.792 bil bushels.

DEC 19 Corn closed at $3.89 1/4, down 3/4 cent,

MAR 19 Corn closed at $3.98 1/2, down 1/4 cent,

MAY 20 Corn closed at $4.04 1/2, down 1/4 cent

JUL 20 Corn closed at $4.10, unch

-- provided by Brugler Marketing & Management

Soybean futures start off the month with 4 to 7 1/2 cent first day gains. Soybean meal was down $0.50/ton, with Soybean oil finished with a 28 point gain. The USDA CAIR Fats & Oils report showed an 8.46% reduction in September beans crushed vs. August, reported at 4.87 MMT. USDA announced this morning a private sale of 132,000 MT of soybeans to China for delivery within the 19/20 MY. The Commitment of Traders report showed that as of 10/29 managed money specs held a 72,325 contract net long position, having expanded it by 3,503 contracts over the previous Tuesday. IEG has released their updated prediction for the 2019/20 soy crop, bumping up US average yields by 0.5 bpa to 47. IEG also increased their expected soybean production number to 3.553 bil bushels.

NOV 19 Soybeans closed at $9.24 1/4, up 7 1/2 cents,

JAN 19 Soybeans closed at $9.36 3/4, up 4 1/2 cents,

MAR 20 Soybeans closed at $9.49 1/4, up 4 cents,

MAY 20 Soybeans closed at $9.60 3/4, up 3 3/4 cents,

DEC 19 Soybean Meal closed at $303.90, down $0.50,

DEC 19 Soybean Oil closed at $31.03, up $0.28

-- provided by Brugler Marketing & Management

Wheat Starts Nov Rally

Wheat futures finished higher to head into the weekend. Chicago was up 7 1/4 cents for Chicago. The Minneapolis and KC futures closed 6 1/4 to 7 1/4 cents higher. CFTC released their commitment of traders report, showing positions for all of the wheat futures as of 10/29. Chicago Wheat still featured a net long by managed money, although the position shrank by 7,057 contracts from the previous week. Kansas City wheat saw an increase to the fund net short position, at 29,389 contracts. Funds reversed course and added to their net long in MPLS wheat. As of Tuesday, they were net long 9,362 contracts. The Buenos Aires Grain Exchange revised their Argentine wheat production lower by 1 MMT to 18.8 MMT.

DEC 19 CBOT Wheat closed at $5.16, up 7 1/4 cents,

DEC 19 KCBT Wheat closed at $4.26, up 6 1/4 cents,

DEC 19 MGEX Wheat closed at $5.31 1/4, up 7 1/4 cents

-- provided by Brugler Marketing & Management

The nearby contracts made gains of $1.62 to $2.45 cents for the first day of Nov. Feeder cattle futures closed higher with gains of $1.75 to $1.52 for nearbys. They are currently at a premium to the Index. As of 10/29 managed money spec funds were net long cattle futures by 40,467 contracts. The CFTC reported that their net long position had increased by 9,253 contracts over the week. In feeder cattle the funds were net short. The 10/30 CME Feeder Cattle index gained $0.76 to $145.99. We have higher wholesale boxed beef prices today. Choice and select boxes both closed up $1.02 at $233.20, and $206.91 respectively. Nebraska and Colorado saw $115 cash cattle bids with most trades between $112 and $114. Nebraska dressed sales were reported at $180 this morning. The USDA week to date FI cattle slaughter is estimated at 655,000 head through Saturday, the big Saturday numbers allow for a catch up to last year’s pace to finish the week 2,000 head more.

DEC 19 Cattle closed at $119.675, up $2.450,

FEB 19 Cattle closed at $124.450, up $2.100,

APR 20 Cattle closed at $125.575, up $1.625,

NOV 19 Feeder Cattle closed at $149.125, up $1.525

JAN 19 Feeder Cattle closed at $146.000, up $1.325

MAR 19 Feeder Cattle closed at $145.125, up $1.750

--provided by Brugler Marketing & Management

Hog futures felt some pressure, closing November first $0.37 to $1.55 lower. Managed money was shown, by the Commitment of Traders Report from this afternoon, holding a shrinking net long for lean hog futures as of 10/29. The CME Lean Hog Index for 10/30 was 29 cents lower at $62.74. The USDA pork carcass finished the first day of November down by 41 cents to $75.64. The national average base hog price starts off the new month with a 10 cent dip to $48.95. USDA estimated WTD hog slaughter was 2.669 million head. The ytd total slaughter through Saturday is 107.313 million head.

DEC 19 Hogs closed at $64.450, down $1.550,

FEB 19 Hogs closed at $72.575, down $0.750

APR 20 Hogs closed at $79.475, down $0.375

--provided by Brugler Marketing & Management

Cotton futures finished November’s first day of trading with 16 to 20 point gains. December finished up 363 points for the month of October but was down for the week. The CFTC reported that managed money’s net short in cotton actually grew by 1,469 contracts to 6,098 as of 10/29. Online cash trades from the Seam saw 851 bales sold on Halloween. The Cotlook A Index was up 1 for 10/31 to 76.45 cents/lb. The weekly AWP from 10/31 is 57.33 cents/lb and will be valid through next Thursday.

DEC 19 Cotton closed at 64.64, up 20 points,

MAR 19 Cotton closed at 66.11, up 23 points

MAY 20 Cotton closed at 67.09, up 22 points

JUL 20 Cotton closed at 67.8, up 16 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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