AgriCharts Market Commentary

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Corn

Corn futures are currently 3 1/2 to 4 1/4 cents lower in the front months. Speculative attention is being drawn toward the beginning of bitcoin futures trading (+26% at one point overnight!). The USDA announced a private export sale of 110,000 MT of corn to Mexico for 17/18 delivery this morning. Their weekly Export Inspections report indicated shipments of 658,403 MT for the week ending 12/7. That is 24.53% lower than this week last year but up 8.8% from the previous week. Analysts are estimating the USDA will trim the 17/18 US corn ending stocks number by 9 mbu to 2.478 bbu on Tuesday. The weekly Commitment of Traders report showed spec traders continuing to reduce their net short position by another 36,244 contracts last week. Their CFTC net short position was at -160,519 contracts in corn futures and options as of last Tuesday.

Dec 17 Corn is at $3.36 1/2, down 3 1/2 cents,

Mar 18 Corn is at $3.48 1/2, down 4 1/4 cents,

May 18 Corn is at $3.57, down 4 cents

Jul 18 Corn is at $3.65 1/4, down 4 cents

Soybeans

Soybean futures are trading 6 to 7 1/2 cents lower at midday. December meal is down $4.10/ton, with nearby bean oil 21 points in the red. A private export sale of 132,000 MT for 17/18 delivery was sold to unknown destinations, as announced by the USDA through their daily export reporting system. This morning’s USDA Export Inspections report showed 1.230 MMT in exports during week of 12/7. That was a drop of 31.78% from the week prior and 33.31% behind this time a year ago. The USDA is expected to increase the 17/18 US ending stocks number for soybeans 15 mbu to 440 mbu, as traders are looking for a cut in projected exports. Managed money added 21,472 contracts to their CFTC net long position in soybean futures and options in the week ending 12/5. That position grew to 53,134 contracts.

Jan 18 Soybeans are at $9.82 1/2, down 7 1/4 cents,

Mar 18 Soybeans are at $9.94, down 7 1/2 cents,

May 18 Soybeans are at $10.05 1/4, down 7 cents,

Jul 18 Soybeans are at $10.14 1/4, down 6 3/4 cents,

Dec 17 Soybean Meal is at $325.90, down $4.10

Dec 17 Soybean Oil is at $33.33, down $0.21

Wheat

Wheat futures are 1-2 cents lower in the thinly traded Dec contract, as back months are 4 to 6 cents lower in the CBT and KC contracts. All wheat exports for the week that ended last Thursday totaled 316,867 MT. That is 38.87% lower than this time last year and down 32.9% from last week. Analysts are expecting to see a slight reduction in the world wheat ending stocks number on Tuesday, mainly from lower expected Australian production. That ending stocks number is estimated at 267.05 MMT, down 0.48 MMT. The Friday Commitment of Traders report showed the spec traders reducing their net short Chicago wheat positions by 3,993 contracts in the week ending last Tuesday. They were net short 118,781 contracts at that time.

Dec 17 CBOT Wheat is at $3.92, down 2 1/4 cents,

Dec 17 KCBT Wheat is at $3.98 1/4, down 2 1/2 cents,

Dec 17 MGEX Wheat is at $5.97 3/4, down 1 cent

Cattle

Live cattle futures are showing mixed trade at midday, with nearby Dec up 35 cents. Feeder cattle futures are mostly 55 to 82.5 cents higher. The CME feeder cattle index on December 7 was down 61 cents to $154.40. Wholesale boxed beef values were mixed on Monday morning. Choice was up 34 cents at $205.93, with select 14 cents lower at $185.83. Estimated weekly FI cattle slaughter was 633,000 head, 8,000 head fewer than the previous week but 25,000 head larger than the same week last year. Cash trade last week fell $3-4 to $117, as a few sales of $118 were reported earlier in the week. Spec funds in cattle futures and options lowered their net long position by 3,073 contracts to 117,010 contracts as of Tuesday.

Dec 17 Cattle are at $115.925, up $0.350,

Feb 18 Cattle are at $118.675, up $0.375,

Apr 18 Cattle are at $120.175, down $0.025,

Jan 18 Feeder Cattle are at $146.050, up $0.825

Mar 18 Feeder Cattle are at $144.125, up $0.800

Apr 18 Feeder Cattle are at $144.200, up $0.550

Lean Hogs

Lean hog futures are trading steady to 1.575 lower on Monday. The CME Lean Hog Index for 12/7 was up 18 cents to $65.48. The USDA pork carcass cutout value was 5 cents higher at $83.75 in the Monday morning report. The belly led the way, $3.02 higher. The national base hog price was 8 cents lower at $58.91. The WCB was down 51 cents, with the IA/MN region 70 cents lower. The USDA weekly FI hog slaughter was 2.537 million head. That was up 2,000 head from the previous week and 89,000 head more than last year.

Dec 17 Hogs are at $63.675, unch,

Feb 18 Hogs are at $67.275, down $1.575

Apr 18 Hogs are at $72.025, down $1.100

Cotton

Cotton futures are 51 to 55 points lower to start the week. Managed money spec traders climbed back to their largest net long position since mid May at 82,409 contracts. That was an increase of 11,681 contracts over the week that ended 12/5. The USDA Adjusted World Price (AWP) was updated to 65.03 cents/lb, up 81 points from the previous week. Online cash sales rose to 12,519 bales reported on the Seam, as prices were down 126 points to 68.64 cents/lb. The Cotlook A index was up 150 points from the previous day on December 8 to 84.70 cents/lb.

Mar 18 Cotton is at 73.17, down 55 points,

May 18 Cotton is at 73.69, down 51 points

Jul 18 Cotton is at 73.84, down 55 points


Market Commentary provided by:

Brugler Marketing & Management LLC
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