AgriCharts Market Commentary

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Corn Market Fractionally Lower

Corn futures begin your Friday fractionally lower. Corn futures closed as much as 1 3/4 cents higher in the nearby contracts yesterday. Lower prices are attracting export sales, with USDA making multiple announcements this week under the daily reporting system. Weekly corn export sales as of 11/14 were listed at 788,022 MT, which is 10.19% below last year’s weekly sales. That was the second largest weekly sale since September 1, however. The accumulated exports have increased to 5.214 MT for the marketing year. The International Grain Council (IGC) updated it’s 2019/20 outlook, forecasting world corn production to be 1.103 BMT, a 5 MMT bump from their October forecast. Carryover was only given a 1 MMT increase mo/mo, because the IGC also increased expected corn consumption.

--provided by Brugler Marketing & Management

Soybeans 1 to 2 Lower on Increased Argentine Plantings

Soybeans are trading 1 to 2 cents lower this morning. Thursday concluded with soybean futures as much as 4 cents lower. Soybean meal finished with a gain of $1.20/ton. Bean oil was 51 points lower. Soybean Export sales were above expectations, with the USDA weekly update revealing net sales to be 1.516 MMT for the week ending 11/14. Soybean export shipments through the same week were 1.707 MMT (62.73 mbu). That was a MY high and 34.2% above the same week last year. Accumulated soybean exports are 13.6% above last year with 12.368 MMT (454.46 mbu) shipped. Bean shipments to China were 873,573 MT for the week, which brought the accumulated shipments to 4.027 MMT. The PRC also added 568,573 MT of purchases through the week, bringing the undelivered commitments to a total of 8.476 MMT. The Weekly Ag Report from the Buenos Aires Grain Exchange stated Argentinean bean planting had reached 31.1% completion as of 11/21. The Ag Ministry hiked projected acreage to 17.2 million HA from 17.1 million.

-- provided by Brugler Marketing & Management

Wheat Market 1 to 3 Cents Higher

Wheat futures are 1 to 3 cents higher on some modest pre-weekend profit taking. Wheat futures never recovered on Thursday, closing with losses as low as 6 1/2 cents for the nearby contracts. The weekly Export Sales Report from the USDA had wheat was in line with expectations. The report indicated that 437,655 MTs of wheat were sold through the week ending 11/14. That was an 83.41% increase over last week, and 32.46% above the same week last year. The total unshipped commitments however are below last year’s pace, at 3.910 MMT. Accumulated exports are 25.22% ABOVE last year’s pace, with the weekly update showing shipments to be 11.705 MMT. The IGC published their 19/20 MY projections for world grain supplies and usage but showed no wheat change from the October forecast. They are 3.6 MMT lower than USDA’s November figure, but both signal adequate short term supplies. Japan purchased 119,998 MT of US and Canadian wheat in their weekly tender, with 65,368 MT from US.

-- provided by Brugler Marketing & Management

Cattle Market News and Commentary

Live cattle futures went against cash cattle prices yesterday, narrowing the basis. Dec futures are saw a modest 2 cent gain, but the other front months closed as much as 60 cents lower. Feeder cattle futures were $1.07 to $1.35 lower at the close. The 11/19 CME Feeder Cattle index was down 41 cents to $145.86. Wholesale boxed beef prices were lower. Choice boxes were down $3.35, while select boxes dropped $0.91 to tighten the Choice/Select spread to $21.00. So far this week cash trade has been reported in the $116 range in the South. Some sales of $116-117 have been reported in NE. Export Sales of beef were reported at 17,959 MT (2019) for the week ending on 11/14, with 3,247 MT for 2020. Shipments of 29,886 were the highest weekly total of 2019. Japan was the top destination, with 1,134 MT headed to China being the largest figure ever for that country in the weekly report. The USDA Cattle on Feed report will be out later this afternoon, with expectations for larger placements and On Feed numbers than a year ago. T The USDA’s weekly estimated FI cattle slaughter is up to 471,000 head through Thursday afternoon, that’s 4,000 head above last week’s pace.

--provided by Brugler Marketing & Management

Lean Hogs Get Boost From Increased Export Sales

Hog futures staged a small recovery on Thursday with the front months closing $0.20 to $1.175 in the black. The 11/19 CME Lean Hog Index recovered $0.29 $59.58. The USDA pork carcass cutout value fell by a sharp $5.11as Hams were down $8.99 and Bellies $14.46 lower. USDA’s national average base hog price for 11/21 was up $0.20 to $42.53. Weekly pork sales for the week ending 11/14 were 54,385 MT for 2019, with 36,424 MT for 2020 sales (most to China). The old crop sales were inflated by late reporting. Weekly shipments were 59,848 MT, with 12,979 MT headed to China and 16,600 MT to Japan. The USDA weekly Livestock Slaughter Report indicated that hog slaughter for the week ending 11/9 was officially 2.698 million head. That was 4.13 % above the same week last year. USDA estimated FI daily hog slaughter was estimated at 484,000 head for Thursday, to put the weekly total at 1.964 million head

--provided by Brugler Marketing & Management

Cotton Market Struggles With Bouts of Profit Taking

Cotton futures are 6 to 10 points higher after ending Thursday with losses of 34 to 45 points. The USDA updated weekly export sales for upland cotton, revealing that for the week ending 11/14 a total of 227,600 RB were sold, which was 35.04% below last week’s multi-year high for weekly sales. That was the third largest for this MY. Another 58,200 RB were sold for 20/21. The shipments through the week ending 11/14 were 137,886 RB. That raised the accumulated MY shipments to 2.748 MRB, that is 14.44% above last year’s pace and the highest through the first 16 weeks of the MY since 2008/09. Weekly cotton shipments to China increased by 39.94% wk/wk. With 21,954 RB shipped over the week, the MYTD accumulated China buys are 234,234 RB. The 11/20 Cotlook A Index was down another 60 points to 74.40 cents/lb. The weekly update to the AWP for cotton was reduced 70 points to 56.36 cents per 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