AgriCharts Market Commentary

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Corn Touches Two Month Lows

Corn Futures fell to a two-month low after Wednesday’s round of trading, dropping by as much as 3 3/4 cents in the front months. The CN rail strike contributes uncertainty about grain movement in parts of the upper Midwest. South Korea purchased 65,000 MT of corn privately from Glencore, with optional origin and a December shipment. Thursday’s Export Sales report is expected to show 400,000-900,000 MT of corn bookings in the week of 11/14. The latest update from the EIA suggested more of the same bullish news from last week. For the week ending 11/15 the daily production per day was up 3,000 barrels over last week, at 1.033 million barrels. The bullish take-away was that for the second consecutive week production was higher and stocks were lower, insinuating demand increases. The stocks were 471,000 barrels lower over the last week to 20.51 million barrels, at the lowest point since 2016.

DEC 19 Corn closed at $3.66 3/4, down 3 1/4 cents,

MAR 19 Corn closed at $3.77 1/4, down 3 1/2 cents,

MAY 20 Corn closed at $3.83, down 3 3/4 cents

JUL 20 Corn closed at $3.89 1/4, down 3 1/4 cents

--provided by Brugler Marketing & Management

Beans Fall After Midday Firmness

Soybean futures fell to as much as 6 1/2 points lower after being fractionally mixed during midday trading. Soybean meal was down $2.20/ton. Bean oil was up by 24 points. Traders are expecting 0.8 -1.4 MMT of soybean export sales in tomorrow’s report. Soymeal export sales are expected to range from 100-45,000 MT, and bean oil is anticipated to show 5,000-25,000 MT. US Soybean FOB prices were are seen below Brazil but slightly above Argentina, @ $359.00/MT. Malaysian palm oil, a substitute for soybean oil, was closed at its highest level since the November 2017.

JAN 19 Soybeans closed at $9.05, down 6 1/2 cents,

MAR 19 Soybeans closed at $9.19, down 5 1/2 cents,

MAY 20 Soybeans closed at $9.32, down 4 3/4 cents,

JUL 20 Soybeans closed at $9.43 3/4, down 4 cents,

DEC 19 Soybean Meal closed at $299.80, down $2.20,

DEC 19 Soybean Oil closed at $31.20, up $0.24

--- provided by Brugler Marketing & Management

Wednesday Wheat Closes Mixed

Wheat futures finished Wednesday’s session mixed. Chicago was higher on the day gaining 2 to 3 1/2 cents in nearby contracts. Kansas city wheat futures were also higher at the closing bell, with gains of 1/4 to 1 1/4 cents for nearby contracts. MPLS HRS wheat on the other hand did finish lower, down bu as much as 3 cents for the front months. Traders are expecting wheat to show 200-500,000 MT of export sales for the week ending 11/14. Last week was 238,620 MT and last year saw 330,394 MT. Australia (ABARE) is estimating wheat production to be a 10-year low at 16.7 MMT, citing drought conditions as the culprit. Jordan purchased 60,000 MT of hard wheat with an optional origin.

DEC 19 CBOT Wheat closed at $5.15 1/2, up 3 1/2 cents,

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

DEC 19 MGEX Wheat closed at $5.01 1/4, down 2 cents

--provided by Brugler Marketing & Management

Cattle Futures Make Gains on Wednesday

Live cattle futures gains tailed off throughout contracts for Wednesday’s close. Gains were seen from 7 to 52 cents in the front months. Feeder cattle futures were mixed after Wednesday’s round of trading, with the soon to expire Nov contracts remaining unchanged on the day. The 11/19 CME Feeder Cattle index was back up 8 cents to $146.62. Analysts expect on average for October placements to be 12.2% higher yr/yr. Analysts also expect the total cattle on feed as of Nov 1 to be 1.3% above last year’s Nov 1. Afternoon boxed beef prices were again lower in the afternoon since midday gains. Choice boxes fell a modest 80 cents at $238.21, while select boxes were lower by 70 cents to $214.77. Cash cattle traded at $116 in KS and TX. The Fed Cattle Exchange online auction had good action, with 1,229 of the 1,398 head sold. TX feedlots passed on offers of 114, KS feedlots accepted 114 offers and NE feedlots were given full ask price of $115-$116. The USDA’s weekly estimated FI cattle slaughter is up to 353,000 head through this evening, that’s 10,000 head below the same week last year.

DEC 19 Cattle closed at $119.300, up $0.525,

FEB 19 Cattle closed at $125.475, up $0.425,

APR 20 Cattle closed at $126.250, up $0.075,

NOV 19 Feeder Cattle closed at $146.600, unch,

JAN 19 Feeder Cattle closed at $144.075, up $0.050

MAR 19 Feeder Cattle closed at $144.150, down $0.325

--provided by Brugler Marketing & Management

Triple digit losses for Lean Hog Futures

Wednesday hog futures are down again, falling another triple digits after a short-lived recovery effort on Tuesday. The cash market is going the other way. The 11/18 CME Lean Hog Index recovered 5 cents to $59.29. Wednesday’s pork carcass cutout value from the USDA was up by $1.91 higher in the afternoon, to $86.58. The Ham primal recovered today, gaining $93.86. USDA’s national average base hog price for 11/20 was 6 cents higher to $42.39. Wednesday FI hog slaughter was estimated at 493,000 head. Following Tuesday’s record daily slaughter, the weekly total is up to 1.480 million head.

DEC 19 Hogs closed at $60.450, down $1.700,

FEB 19 Hogs closed at $66.775, down $2.850

APR 20 Hogs closed at $72.925, down $2.825

--provided by Brugler Marketing & Management

Cotton Falls Sharply in Afternoon Trading

Cotton futures fell sharply since being higher by 32 to 43 points at midday. Futures finished the day with triple digit decreases which pushed them to the lowest price in over a month. 3,520 bales sold on the online trading platform The Seam, brings the weekly sales up to 7,103 bales. That is 13.84% behind last week’s pace. The 11/19 Cotlook A Index was down 50 points to 75.00 cents/lb. The AWP for cotton will be updated tomorrow afternoon, the current AWP is 57.06 cents/lb.

DEC 19 Cotton closed at 62.23, down 121 points,

MAR 19 Cotton closed at 64.22, down 113 points

MAY 20 Cotton closed at 65.42, down 120 points

JUL 20 Cotton closed at 66.41, down 126 points

--provided by Brugler Marketing & Management

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.
Omaha, NE 68022
P: 402-697-3623
F: 402-289-2353