Ag Market Commentary
BRUG - Wed Nov 27, 4:24PM CST

Corn is 4 3/4 to 5 1/4 cents lower after Wednesday’s trading. In the EIA’s newest update, corn demand was again bullish, with decreases in ethanol stocks and increases in production. Production was higher wk/wk for the 10th week in a row at 1.059 million barrels per day in the week ending 11/22. Ethanol stocks at the end of that week 20.077 million barrels, which was a 237,000 barrel reduction wk/wk, for the 4th consecutive weekly drop. 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. The West Coast’s ethanol stocks were shown at 2.827 m bls, after a 203,000 decrease wk/wk. the Midwest saw a 111,000 barrel drop over last week to bring stocks to 6.699 m bls. East Coast stocks were 6.426 m bls. 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 closed at $3.62 3/4, down 4 3/4 cents,

MAR 19 Corn closed at $3.73 1/4, down 5 cents,

MAY 20 Corn closed at $3.79, down 5 1/4 cents

JUL 20 Corn closed at $3.84 1/4, down 5 1/4 cents

--provided by Brugler Marketing & Management

Soybean futures are down after pre-holiday trades, with nearby futures falling by 2 1/4 to 2 3/4 cents. Soybean meal finished with a 90 cent/ton drop, and bean oil gained 15 points to go into the holiday. 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 $359.8/tonne. FOB prices for American beans have also been falling keeping us competitive, and were currently at $349/T with Argentinean beans shown at $357 from a weeklong upward trend.

JAN 19 Soybeans closed at $8.82, down 2 1/4 cents,

MAR 19 Soybeans closed at $8.96 1/2, down 2 1/4 cents,

MAY 20 Soybeans closed at $9.10 3/4, down 2 1/2 cents,

JUL 20 Soybeans closed at $9.23 1/4, down 2 3/4 cents,

DEC 19 Soybean Meal closed at $293.80, down $0.90,

DEC 19 Soybean Oil closed at $30.37, up $0.15

-- provided by Brugler Marketing & Management

The three US wheat futures markets all finished lower before Turkey Day. KC HRW led the way down with nearby futures finishing 4 to 5 3/4 cents lower. MPLS also broke 5 cents on the day, with other nearby futures falling around 3 to 3 1/2 cents. Chicago SRW was 1 3/4 cents lower for nearby Dec futures, while the other contracts finished on losses of 3 1/4 to 4 cents. The Chicago to KC wheat premium crested the $1.00 mark again and at $1.02 1/2 is the highest spread to favor Chicago SRW since data was kept in 2004. Chicago futures also hold a premium to MPLS wheat futures, of 37 3/4 cents, with the highest spread favoring Chicago $1.48 from September 7th 2007. 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 closed at $5.28 1/2, down 1 3/4 cents,

DEC 19 KCBT Wheat closed at $4.26 3/4, down 5 3/4 cents,

DEC 19 MGEX Wheat closed at $4.88 1/2, down 5 1/2 cents

-- provided by Brugler Marketing & Management

Live cattle futures gained $0.92 to $1.02 today and Dec futures have hit a new 7-month high. Feeder cattle futures regained yesterday losses with gains of as much as $1.70 ahead of the holiday. The 11/26 CME Feeder Cattle index was $145.02 after a 33 cent bump. Wholesale boxed beef prices widened today’s Choice/Select spread to $21.60. Choice boxes were $0.40 higher, and select boxes dropped by $1.65. The USDA has reported minimal cash sales activity through the week, with KS reporting some $118 activity later Wednesday afternoon. USDA estimated the FI cattle slaughter weekly total to be 341,000 head through Wednesday. The shortened week is 12,000 head behind last week’s total as well as 15,000 head behind the same Wednesday last year.

DEC 19 Cattle closed at $121.425, up $1.025,

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

APR 20 Cattle closed at $127.025, up $0.925,

JAN 19 Feeder Cattle closed at $143.325, up $1.700

MAR 19 Feeder Cattle closed at $143.925, up $1.700

APR 19 Feeder Cattle closed at $145.625, up $1.575

--provided by Brugler Marketing & Management

Lean hog futures finished lower on the day, noticing decreases of 15 cents to 72 cents. The 11/25 CME Lean Hog Index was $57.88 after a 30 cent decrease. The USDA pork carcass cutout value was again lower, at $79.80 following a $2.28 drop. Belly cuts were marked at $94.87, after a $14.57 per hundredweight drop. USDA’s national average base hog price for 11/27 was $42.80, for a 35 cent gain. USDA estimates FI hog slaughter for the shortened week to be 1.465 million head through Wednesday; the USDA revised Tuesday’s estimates lower by 16,000 head.

DEC 19 Hogs closed at $60.675, down $0.150,

FEB 19 Hogs closed at $67.150, down $0.675

APR 20 Hogs closed at $73.625, down $0.725

--provided by Brugler Marketing & Management

Cotton futures were 8 to 20 points lower, after regaining some of midday losses, on the last session before the Thanksgiving holiday. Our next report will be on Friday morning. Two big selling days in a row pushed the week to date total through 11/26 past last week’s accumulated online cash sales on The Seam. The running total through 11/26 was 27,507 and last week’s online sales were 16,413 bales. 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. Cert stocks continue to rise, providing liquidity for December futures deliveries. There are currently 83,666 bales available for delivery.

DEC 19 Cotton closed at 64.7, down 20 points,

MAR 19 Cotton closed at 65.87, down 8 points

MAY 20 Cotton closed at 66.97, down 9 points

JUL 20 Cotton closed at 67.72, down 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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