AgriCharts Market Commentary

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Monday Corn Finishes Lower

Corn Futures finish the first day of the week with losses, nearby futures were 3/4 to 1 1/4 cents lower. After the close, The USDA released the final crop progress report for the 2019 season, indicating corn harvest had progressed 3 percentage points through the week and was 92% complete as of 12/08. ND was shown at 43% harvested, MI was 74%, and WI was at 74% harvested from the report. The USDA weekly export inspections report this morning showed corn exports for the week ending 12/05 were only 481,097 MT. Mexico was the top destination, with a 47.35% share of the weekly shipments. Behind Mexico was Japan with a 17% share. The report indicated that accumulated shipments increased to 6.532 MMT, compared to the 15.118 MMT through the same point last year.

DEC 19 Corn closed at $3.65 3/4, down 3/4 cent,

MAR 19 Corn closed at $3.75 3/4, down 1 cent,

MAY 20 Corn closed at $3.81 1/4, down 1 1/4 cents

JUL 20 Corn closed at $3.86, down 3/4 cent

---provided by Brugler Marketing & Management

Soybean Futures Finish with Gains

Front month bean futures finished in the black, with gains from 7 1/4 to 8 cents. Soybean meal futures were 70 cents/ton lower at the close. Soy oil futures closed with a gain of 35 points. Soybean exports from the USDA’s weekly report came in at 1.327 MMT for the week ending 12/05. That is a decrease of 248,707 MT wk/wk, but that was a 43.22% increase from the same week last year. The USDA showed that China was the top destination holding a 62.6% share of shipments for the week, with Bangladesh (12.87%) and Japan (9.27%) coming in at 2nd and 3rd respectively. Wire reports have China buying as much as 300,000 MT of US soybeans for Jan-Feb delivery following last week’s Chinese tariff shift. Pre-WASDE estimates for U.S. soybean carryout range from 392 to 522 mbu with the average of those polled at 474 mbu. Average estimates for world carryout remained firm with the Nov. WASDE, at 95.9 MMT. FOB prices for soybeans have America at $347/ ton with Argentina and Brazil at $357 and $359 respectively.

JAN 19 Soybeans closed at $8.97 1/4, up 7 3/4 cents,

MAR 19 Soybeans closed at $9.11 3/4, up 8 cents,

MAY 20 Soybeans closed at $9.25 1/2, up 7 1/4 cents,

JUL 20 Soybeans closed at $9.38 3/4, up 7 1/4 cents,

DEC 19 Soybean Meal closed at $296.70, down $0.70,

DEC 19 Soybean Oil closed at $31.36, up $0.35

--- provided by Brugler Marketing & Management

Wheat Market Finishes Mixed on Monday

The winter wheats finished Monday’s session mostly lower, while MGE HRS wheat was 1 to 1 1/2 cents higher on the day. Chicago SRW wheat futures were 1/2 to 1 3/4 cents lower at the closing bell. Nearby KC wheat futures finished with losses of as much as 5 1/2 cents. The USDA’s weekly export inspections update pushed the MY accumulated wheat exports through 12/05 to 13.017 MMT. Following 313,810 MT of weekly shipments, accumulated exports aqre now 18% above last year. Mexico was the main destination with a 19.5% share of wheat exports this week, after them were Thailand and Japan with 17.53% and 17.41% respectively. Estimates for U.S. wheat carryover in the December 10 report range from 964 mbu to 1.05 bbu. Analysts expect for world wheat carryover to run 283.9 to 290 MMT, which on average is a 1.4 MMT reduction form the Nov. WASDE. World Grain estimates that Aussie wheat will be 5.6% lower than previous official estimates, they reported production estimate at 14.97 MMT. The Egyptian GASC issued an international wheat tender for early February delivery. Results are expected tomorrow.

DEC 19 CBOT Wheat closed at $5.32, down 1/2 cent,

DEC 19 KCBT Wheat closed at $4.11 1/2, down 3 1/2 cents,

DEC 19 MGEX Wheat closed at $4.97, unch,

--- provided by Brugler Marketing & Management

Cattle Market Mixed on Monday

Live cattle futures were mostly lower, with April futures having gained $0.10 since midday lows. Feeder cattle futures were lower in the nearby Jan contracts, but saw gains as much as 60 cents int the other front months. The 12/06 CME Feeder Cattle index was $143.48 lower by $1.01. Wholesale boxed beef prices were lower. Choice boxes were 92 cents lower, at $223.64. Select boxes dropped by 81 cents and were at $206.49. The USDA mentioned cash sales activity through Monday were mostly inactive, suggesting light activity at the $119 mark. Estimated cattle slaughter under federal inspection starts the week with 121,000 head, which pushes the estimated YTD slaughter to 31.147 million head.

DEC 19 Cattle closed at $120.175, down $0.025,

FEB 19 Cattle closed at $124.750, down $0.225,

APR 20 Cattle closed at $125.450, up $0.100,

JAN 19 Feeder Cattle closed at $141.525, down $0.025

MAR 19 Feeder Cattle closed at $142.275, up $0.600

APR 19 Feeder Cattle closed at $144.150, up $0.375

---provided by Brugler Marketing & Management

Lean Hog Futures Fell by Triple Digits

Lean hog futures were lower in the front months after Monday trading. Futures closed with losses of 72 cents to $1.125 on the board. The 12/6 Fresh Bacon Index from CME dropped $8.43 this week to $131.15. The 12/05 CME Lean Hog Index was at $58.49, after a 15-cent increase. USDA’s afternoon pork carcass cutout value was lowered 10 cents to $81.98. Picnic shoulder cuts and hams were the only primal cuts that were higher. USDA’s national average base hog price for 12/09 was up $0.50 to $47.02. The USDA estimates hog slaughter to start the week with 496,000 head, pushing the YTD FI slaughter to 121.175 million head.

DEC 19 Hogs closed at $60.000, down $1.125,

FEB 19 Hogs closed at $66.700, down $0.850

APR 20 Hogs closed at $72.975, down $0.725

---provided by Brugler Marketing & Management

Cotton Finishes Monday in the Red

Cotton futures started the week with 20 to 52 point losses; March futures recovered a bit from midday lows, but still gave back most of last week’s 59 point gain. USDA issued the final crop progress report for the 2019 season. Within this afternoon’s release, they had cotton at 89% harvested through 12/08. TX harvest progressed from 74% to 82%, and GA was up 4 percentage points to 93%. The Seam reported online cotton sales of 36,019 bales on 12/06, at an average price of 59.08 cents per bale. The 12/06 Cotlook A Index gave back 25 points, at 73.90. The weekly AWP was 55.97 cents/lb.

MAR 19 Cotton closed at 65.48, down 52 points,

MAY 19 Cotton closed at 66.49, down 36 points

JUL 20 Cotton closed at 67.31, down 20 points

OCT 20 Cotton closed at 0, unch,

---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