AgriCharts Market Commentary

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Corn Market Fractionally Lower

December 10, 2019

The corn market traded fractionally lower overnight. Corn futures finished Monday 3/4 to 1 1/4 cents lower. After the close, the USDA released the final crop progress report for the 2019 season, indicating corn harvest had progressed 3 percentage points through the week and was 92% complete as of 12/08. Using the USDA’s forecasted 81.8 million acres of corn to be harvested with the 8% remaining from the crop progress, approximately 6 million acres remain in the field. We suspect some of it will be there until spring. ND was shown at 43% harvested, MI was 74%, and WI was at 74% harvested from the report. The USDA weekly export inspections report indicated that accumulated shipments increased to 6.532 MMT, which is only 43.21% of last year through the same week.

---provided by Brugler Marketing & Management

Soybean Market Cautiously Higher Ahead of USDA

December 10, 2019

Soybeans start off this report day 1 to 2 cents per bushel higher. Front month bean futures finished Monday with gains from 7 1/4 to 8 cents. Soybean meal futures were 70 cents/ton lower at the close. Soy oil futures closed with a gain of 35 points. MY accumulated soybean exports (from the USDA’s inspections report) are 17.298212 MT, which is 21.95% ahead of last year. The USDA update showed China as the destination for 62.6% of shipments for the week. Pre-WASDE estimates for U.S. soybean carryout range from 392 to 522 mbu with the average of those polled at 474 mbu. Average estimates for world carryout remained firm with the Nov. WASDE, at 95.9 MMT.

--- provided by Brugler Marketing & Management

Wheat Markets Steady to 2 Lower This Morning

December 10, 2019

Wheat is UNCH to 2 cents lower this morning ahead of the monthly USDA supply/demand report. On Monday, the winter wheats finished mostly lower, while MGE HRS wheat was 1 to 1 1/2 cents higher on the day. Chicago SRW wheat futures were 1/2 to 1 3/4 cents lower while KC wheat futures finished with losses of as much as 5 1/2 cents. A state report showed only 94% of the Kansas wheat crop has emerged, and condition ratings deteriorated over the past week. That’s input, but not really tradable because much can happen between here and harvest next May. The USDA’s weekly export inspections update pushed the MY accumulated wheat exports through 12/05 to 13.017 MMT, which is 18% above last year. Estimates for U.S. wheat carryover in the December 10 report range from 964 mbu to 1.05 bbu. Analysts expect world wheat carryover to run 283.9 to 290 MMT, which on average is a 1.4 MMT reduction form the Nov. WASDE. The Aussie production estimate is expected to shrink, while the EU or Russia might be bumped higher. The Egyptian GASC issued an international wheat tender for early February delivery. Results are expected this afternoon.

--- provided by Brugler Marketing & Management

Cattle Market News and Commentary

December 10, 2019

Live cattle futures were 22 lower to 35 higher yesterday, influenced by seasonal weakness in the cutouts. Tight supplies of ready cattle helped to support the market. Feeder cattle futures were lower in the nearby Jan contract, but saw gains as much as 60 cents in other months. The 12/06 CME Feeder Cattle index was $143.48 and down $1.01 from the previous day. Wholesale boxed beef prices were lower on Monday. Choice boxes were 92 cents lower, at $223.64. Select boxes dropped by 81 cents and were at $206.49. Estimated cattle slaughter under federal inspection started the week with 121,000 head.

---provided by Brugler Marketing & Management

Lean Hogs Dip to $60

December 10, 2019

Lean hog futures were lower in the front months after Monday trading. Futures closed with losses of 72 cents to $1.125 on the board. The 12/6 Fresh Bacon Index from CME dropped $8.43 this week to $131.15. The 12/05 CME Lean Hog Index was at $58.49, after a 15-cent increase. USDA’s afternoon pork carcass cutout value was lowered 10 cents to $81.98. Picnic shoulder cuts and hams were the only primal cuts that were higher. USDA’s national average base hog price for 12/09 was up $0.50 to $47.02. The USDA estimated hog slaughter to start the week with 496,000 head.

---provided by Brugler Marketing & Management

Cotton Market Off 18 to 27 Points Overnight

December 10, 2019

Overnight action in the cotton market was 18 to 27 points lower. Last week’s bulls are taking money off the table ahead of the USDA reports at noon EST. Cotton futures started the week with 20 to 52-point losses on Monday. March futures recovered a bit from midday lows, but still gave back most of last week’s 59 point gain. USDA issued the final crop progress report for the 2019 season. They had cotton at 89% harvested through 12/08. TX harvest progressed from 74% to 82%, and GA was up 4 percentage points to 93%. The Seam reported online cotton sales of 36,019 bales on 12/06, at an average price of 59.08 cents per bale. The 12/06 Cotlook A Index gave back 25 points, at 73.90. The weekly AWP was 55.97 cents/lb.

---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
E-mail: alanb@bruglermktg.com
Web: http://bruglermarketing.com