Ag Market Commentary
BRUG - Wed Nov 27, 12:03PM CST

Corn is lower in pre-holiday trade, giving back 2 3/4 to 3 cents in the front months. The US stock market continues to post new all time highs, drawing speculative money away from commodities. In the EIA’s newest update, corn demand was again bullish, with decreases in ethanol stocks outweighing increases in production. Production was higher wk/wk for the 10th week in a row, listed at 1.059 million barrels per day through the week ending 11/22. Through the same week stocks were at 20.077 million barrels, which was a 237,000 barrel reduction wk/wk, for the 4th consecutive week. For 7 of the last 10 weeks stocks have decreased, for a 10-week total reduction of 2.223 million barrels. The report also revealed 36,000 barrels of imports to the west coast. South Korea tendered for corn, purchasing up to 69,000 MT at $208.38 /T optional origin and will have Mar 2020 delivery.

DEC 19 Corn is at $3.64 1/2, down 3 cents,

MAR 19 Corn is at $3.75 1/4, down 3 cents,

MAY 20 Corn is at $3.81 1/2, down 2 3/4 cents

JUL 20 Corn is at $3.86 3/4, down 2 3/4 cents

--provided by Brugler Marketing & Management

Soybean futures are lower by as much as 2 cents for the nearbys. Soybean meal was $0.20/ton lower at midday, and bean oil has gained 7 points so far. The Brazilian Real touched an all-time low against the dollar yesterday at .2364 dollars to Real. The weak currency has helped push their FOB prices down to $365.90/tonne. On the other side, soybean prices in Real hit a five year high for Brazilian farmers. USDA is using 76 MMT for their full year export figure (September to August). Chinese veg oil imports in October were a record 1.3 MMT. Bean imports are down because they don’t need as much meal, but they still need the oil for cooking. YTD veg oil imports (Jan-Oct) are up 2.9 MMT from last year.

JAN 19 Soybeans are at $8.83, down 1 1/4 cents,

MAR 19 Soybeans are at $8.97, down 1 3/4 cents,

MAY 20 Soybeans are at $9.11 1/2, down 1 3/4 cents,

JUL 20 Soybeans are at $9.24, down 2 cents,

DEC 19 Soybean Meal is at $294.50, down $0.20,

DEC 19 Soybean Oil is at $30.29, up $0.07

-- provided by Brugler Marketing & Management

The three US wheat futures markets are all lower following gains in overnight trading. MPLS HRS wheat is leading the way lower at midday with losses 2 1/4 to 4 1/4. Chicago SRW is 1 1/4 to 2 1/2 lower at midday, and KC HRW is down by as much as 2 3/4 cents at midday. Jordan bought 60,0000 MT of hard wheat in an international tender at $239.30 /T and optional origin, for April 2020 delivery. There are currently zero stocks in deliverable position that are registered for delivery against Chicago Dec futures. First notice day is Friday.

DEC 19 CBOT Wheat is at $5.27 3/4, down 2 1/2 cents,

DEC 19 KCBT Wheat is at $4.30, down 2 1/2 cents,

DEC 19 MGEX Wheat is at $4.89 3/4, down 4 1/4 cents

-- provided by Brugler Marketing & Management

Live cattle futures are higher again, with triple digit midday gains in the nearby contracts. and Dec futures have hit a new 7-month high. Feeder cattle futures have regained yesterday losses with midday gains of as much as $1.77 ahead of Turkey Day. The 11/25 CME Feeder Cattle index was lower by 54 cents to $144.79. Wholesale boxed beef prices reversed yesterday’s pattern, to widen today’s spread. Choice boxes were $0.74 higher, and select boxes dropped by $1.23. The USDA had reported minimal cash sales activity through the week, with slight $118 activity for 80% choice grade. There will not be an FCE online cattle auction this week. USDA estimated the Tuesday cattle slaughter under Federal inspection at 110,000, to bring the weekly total to 228,000 head. Last year’s running total through Tuesday was 234,000.

DEC 19 Cattle are at $121.450, up $1.050,

FEB 19 Cattle are at $126.700, up $1.025,

APR 20 Cattle are at $126.925, up $0.825,

JAN 19 Feeder Cattle are at $143.400, up $1.775

MAR 19 Feeder Cattle are at $143.875, up $1.650

APR 19 Feeder Cattle are at $145.500, up $1.450

--provided by Brugler Marketing & Management

Lean hog futures are mixed at midday, the futures notice 15 to 22 cent losses in the front months, with nearby December as an exception, up 12.5 cents. The 11/22 CME Lean Hog Index was $1.58 lower to $58.18. The USDA pork carcass cutout value was again lower, down by $1.93. Belly cuts were marked at $92.97, after a $16.47 drop. USDA’s national average base hog price for 11/27 was $42.92, off of a 47 cent gain. USDA estimates FI hog slaughter for Tuesday at 495,000 head, that brought the weekly total up to 986,000 just 1,000 head below last week’s record setting pace.

DEC 19 Hogs are at $60.950, up $0.125,

FEB 19 Hogs are at $67.675, down $0.150

APR 20 Hogs are at $74.125, down $0.225

--provided by Brugler Marketing & Management

Cotton futures are 10 to 26 points lower so far in the last session before the Thanksgiving holiday. Participation is expected to be on the light side, as some make it a 4 or even 5 day holiday. Cotton continued Monday’s rally on Tuesday with May futures leading the way (+25 points) at the close. Cash sales started the week off strong with the Seam posting 12,620 bales sold on 11/25. The 11/25 Cotlook A Index regained all of the 85 points from yesterday, back at 74.95 cents/lb. With tomorrows Holiday, the adjusted world price will not be updated until Friday; it is still currently at 56.36 cents per lb from last week. Cert stocks continue to rise, providing liquidity for December futures deliveries.

DEC 19 Cotton is at 64.7, down 20 points,

MAR 19 Cotton is at 65.85, down 10 points

MAY 20 Cotton is at 66.94, down 12 points

JUL 20 Cotton is at 67.62, down 26 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

Did you know Brugler Marketing & Management has more to offer to you than just this free daily commentary?! Producers just like you rely on our custom research and daily guidance on when and how to market their commodities. Click here to learn more about what we have to offer, or call 402-697-3623. Do it today!

Do you want to know what trades Alan Brugler recommends? Subscribe to Ag Market Professional, and become part of the Brugler client group! Not sure? Ask for a FREE SAMPLE and get two FREE GIFTS! Start here

Want this Ag News delivered to your inbox? Get the FREE Brugler Ag Newsletter, delivered 3 times daily.