Ag Market Commentary

Corn futures are trading 1 to 2 cents lower here on Wednesday morning. They closed the Tuesday session with most contracts steady to 3 cents higher. The release for this week’s EIA report is pushed back until Thursday due to todays Day of Mourning for former President George H.W Bush. Brazil’s Trade Ministry data showed November corn exports at 3.997 MMT, up 24.87% from October and 12.7% larger than last year. As the world is shifting focus to the South American growing season, private consultancy Celeres estimates increased Brazilian 18/19 corn production over last year, with exports for 2019 ranging between 25 and 32 MMT.

--provided by Brugler Marketing & Management



Soybean futures are mostly 1 to 1 cents per bushel higher this morning. They ended Tuesday with most contracts 5 to 6 1/4 cents higher. The US dollar is weaker. Equity futures are higher but the stock markets will not trade today due to the Bush funeral. Nearby soy meal was up 60 cents/ton, with soy oil 33 points in the green. Brazil’s soybean exports during November totaled 5.072 MMT, according to the country’s Trade Ministry. That was more than double the same month last year but was down 5.27% from October. Celeres estimates Brazil’s 2018/19 soybean crop could range 123-130 MMT. Brazilian exports for 2019 are projected at a record 77-82 MMT.

--provided by Brugler Marketing & Management



Wheat futures are currently 3 to 5 cents lower. They were steady to 4 cents lower in most contract on Turnaround Tuesday after the US dollar index staged a mid-session rally. The CBT front months saw a little strength. Japan is seeking 143,643 MT of wheat, with the tender due on Thursday and 62,975 MT sought from the US. Taiwan’s tender for 110,000 MT of US wheat closes on Wednesday. EU soft wheat production is estimated at 128.6 MMT according to Coceral, down 1.3 MMT from their previous estimate. USDA exports sales data will be released on Friday. Government offices are closed today for the Bush observance.

--provided by Brugler Marketing & Management



Live cattle futures settled Tuesday with most contracts 72.5 cents to $1.475 higher. Feeder cattle futures were 35 to 95 cents in the green on the day, with nearby Jan down a dime. The CME feeder cattle index was down $1.13 on December 3 at $146.72. Wholesale beef prices were mixed on Tuesday afternoon, widening the Ch/Select spread to $16.35. Choice boxes were up 78 cents at $213.86, with the Select cutout value $1.67 lower at $197.51. USDA’s estimated FI cattle slaughter is at 240,000 head WTD, up 4,000 head from last week and up 2,000 head from a year ago. Wednesday’s FCE online auction is showing only 219 head offered for sale.

--provided by Brugler Marketing & Management



Lean Hog futures were steady to $1.15 lower on Tuesday. The CME Lean Hog Index was down 6 cents from the previous day @ $56.36 on November 30. The USDA pork carcass cutout value was up 23 cents on Tuesday afternoon at $70.88. Higher belly and loin primals led the way. The national base cash hog carcass value was down 85 cents this afternoon at an average weighted price of $48.68. USDA’s FI hog slaughter was estimated at 478,000 head for Tuesday, with Monday’s revised down to 467,000 head, bringing the WTD total to 945,000 head. That was up 30,000 head from last week and 13,000 head larger than the same week last year.

--provided by Brugler Marketing & Management



Cotton futures are trading 4 lower to 25 higher this morning. They saw 9 to 14 point losses in the front months on Tuesday, with deferred contracts slightly higher. The dollar index rallied sharply into the Tuesday close, taking away some of the bullish incentive in the commodities. The Cotlook A index was back up 25 points from the previous day on Nov 30 at 86.80 cents/lb. The weekly USDA AWP is 67.92 cents/lb through Thursday. USDA will delay its weekly Export Sales report until Friday, as the government is closed for Wednesday’s National Day of Mourning for former President George H.W. Bush. The CFTC Cotton-on-Call report will be delayed until Friday as well. The Cert stocks level as of December 3 was at 147,199 bales. There were deliveries of another 77 contracts against December overnight, all stopped by an SG Americas client.

--provided by Brugler Marketing & Management






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