AgriCharts Market Commentary

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Corn Market Commentary

Corn futures are trading fractionally higher ahead of this morning’s monthly USDA supply/demand update. They closed Monday steady to 1 1/2 cents lower, with Dec up 1/4 cent ahead of Friday’s expiration. USDA reported the fourth largest daily export sale on record for corn yesterday, but it didn’t move the market. The weekly Export Inspections report indicated that 876,305 MT of corn was shipped in the week that ended on 12/6. The weekly export total was 22.06% larger than the same week in 2017. Accumulated exports since September 1 are now 75.57% above year ago at 594.71 mbu. The Monday afternoon Commitment of Traders report showed money managers flipping their net position by 75,893 contracts in corn futures and options to be net long 53,745 contracts as of last Tuesday. --provided by Brugler Marketing & Management

Soybeans Market Commentary

Soybean futures are currently 2 to 2 1/2 cents higher than on Monday. They ended Monday with 5 to 7 cents losses. The weekly Export Inspections report indicated that 922,094 MT were exported in the week that ended on December 6. That was down 11.84% from the prior week and 25.83% lower than last year. Spec funds in soybean futures and options slashed their CFTC net short position by 46,269 contracts on 12/4 to a net position of -17,593 contracts. The average trade guess for USDA soybean ending stocks is 945 million bushels, with most assuming USDA has no evidence of Chinese purchases to justify a change in exports. Brazil’s ABIOVE estimated the country’s 18/19 soybean crop at 120.9 MMT, 1.4 larger than the previous number. --provided by Brugler Marketing & Management

Wheat Market Commentary

Wheat futures are trading 1 to 2 cents higher this morning. They sustained 4 to 6 1/4 cent losses in most CBT and MPLS contracts yesterday, with KC fractionally to 1 3/4 cents lower. USDA’s weekly Export Inspections report showed 418,460 MT shipped in the week that ended on 12/6. That was down 11.8% from last week but up 18% from this week in 2017. Total shipments YTD (404.17 mbu) are 16.24% lower than a year ago but have been gaining over the past several weeks. Analysts are expecting USDA to peg 18/19 world ending stocks at 266.5 MMT ahead of Tuesday’s monthly update, slightly lower than November. Delayed CFTC data showed spec traders in CBT wheat futures and options trimming their net short position as of last Tuesday by 10,206 contracts to -28,407 contracts. They also cut 7,227 contracts from their net short position in KC wheat to -2,445 contracts. --provided by Brugler Marketing & Management

Cattle Market Commentary

Live cattle were steady to 32.5 cents lower in the nearby contracts yesterday, with back months higher. Feeder cattle futures were up 45 to 90 cents in most contracts on Monday. The CME feeder cattle index was down $1.07 on December 7 at $144.00. Wholesale beef prices were higher on Monday afternoon. Choice boxes were up $1.13 at $215.42, with the Select cutout value 44 cents higher at $200.94. USDA estimated Monday’s FI cattle slaughter at 119,000 head, even with last week and 2,000 head larger than the same Monday last year. The Commitment of Traders report showed the managed money net long position in live cattle futures and options expanding by 7,055 contracts as of 12/4 to 72,263 contracts. In feeder cattle futures and options, they moved to a record reported net short position of -5,774 contracts on that date. --provided by Brugler Marketing & Management

Lean Hogs Market Commentary

Lean Hog futures saw most contracts 25 to $1.05 lower on Monday, while front month Dec was up 47.5 cents. The CME Lean Hog Index was down 23 cents from the previous day @ $55.96 on December 6. The USDA pork carcass cutout value was down 98 cents at $72.65. The national base cash hog carcass value was down 49 cents to a weighted average of $47.35. Monday’s USDA estimated FI hog slaughter totaled 479,000 head, 12,000 head larger than last week and 15,000 head above a year ago. Specs in lean hog futures and options trimmed their CFTC net long position by just 954 contracts in the week ending December 4, to 39,369 contracts. --provided by Brugler Marketing & Management

Cotton Market Commentary

Cotton futures are 49 to 54 points higher this morning ahead of the WASDE report.They posted 27 to 35 point losses in the nearby contracts on Monday. The US dollar index saw sharp gains on the day, a headwind for commodities priced in dollars. The Cotlook A index was down 195 points from the previous day on Dec 7 at 87.25 cents/lb. The weekly USDA AWP is 69.34, effective through Thursday. Export commitments for upland cotton now lag a year ago by 0.5% but are 70% of USDA’s projected total vs. the 60% average. Traders are looking for lower US cotton ending stocks in today’s report, mostly expecting a cut in 2018 production. The Commitment of Traders report indicated spec traders in cotton futures and options adding 1,108 contracts to their net long position on 12/4 at 38,102 contracts.

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353