Ag Market Commentary

Corn futures closed 2 1/2 cents to 3 cents lower after Wednesday’s round of trading. Brazil’s CONAB slightly lowered their 19/20 corn production forecast, down 30,000 MT to 98.37 MMT. The Nov WASDE projects 101 MMT of Brazilian corn. CONAB corn exports for the 19/20 MY remained UNCH at 34 MMT, which was down from the 18/19 record of 39 MMT corn exports but more bearish than the trade had hoped. The weekly EIA report will come out tomorrow, following the Veteran’s Day break.

Dec 19 Corn closed at $3.75 1/4, down 2 1/2 cents,

Mar 20 Corn closed at $3.84, down 2 1/2 cents,

May 20 Corn closed at $3.89 3/4, down 3 cents,

Jul 20 Corn closed at $3.95 3/4, down 3 cents,

---provided by Brugler Marketing & Management



Soybean futures were 1 3/4 to 3 1/4 cents lower at Wednesdays close. Soybean meal was up by $1.80/ton, while soybean oil finished Wednesday 50 points lower. The USDA reported a private export sale of 106,000 MT of soybeans overnight to unknown. Chinese purchases of soybeans amid reports of port backlogs lead some analysts to believe China is trying to buy beans ahead of December tariff hikes; that idea got a shred of credibility when chief economic advisor Larry Kudlow indicated this morning that the tariff increases for December are still on the schedule since no deal has been reached yet. CONAB updated the projected Brazilian output this morning; they revised up the soybean production for 19/20 to 120.86 MMT, that is 2.14 MMT below the Nov WASDE number. CONAB’s Soybean exports were UNCH at 72 MMT..

Nov 19 Soybeans closed at $9.02 1/2, down 3 1/4 cents,

Jan 20 Soybeans closed at $9.15 1/4, down 1 3/4 cents,

Mar 20 Soybeans closed at $9.28 1/2, down 1 3/4 cents,

May 20 Soybeans closed at $9.40 3/4, down 2 cents,

Dec 19 Soybean Meal closed at $304.10, up $1.80

Dec 19 Soybean Oil closed at $30.53, down $0.50

--- provided by Brugler Marketing & Management



Wheat Finished Wednesday’s session with sharp losses. Kansas City wheat lead the way down by as much as 14 cents in nearby contracts. Nearby Chicago wheat closed with 7 3/4 cent losses to as low as 8 cents down. MLPS also lost in the front months, finishing 4 1/2 to 7 cents lower on the day. French AgriMer lowered their ending wheat stocks projection to 2.5 MMT, riding an increase in anticipated exports, which were updated to 12 MMT. Jordan released an international tender for 120,000 MT of wheat. Egypt is also tendering for wheat for January 5-15 delivery.

Dec 19 CBOT Wheat closed at $5.09, down 8 cents,

Dec 19 KCBT Wheat closed at $4.24 3/4, down 14 cents,

Dec 19 MGEX Wheat closed at $5.15 1/4, down 6 1/2 cents,

-- provided by Brugler Marketing & Management



Live cattle futures finished Wednesday lower by triple digits, down by $1.37 to $1.65 in the front months. Feeder cattle futures rebounded slightly after touching limit losses, but still finish the day with major declines. The CME Feeder Cattle index gained $0.20 on 11/12 to $147.44. Afternoon boxed beef prices were higher, widening the Chc/Sel spread to 24.81. Choice boxes were up $1.84 to $242.34. Select boxes were up $1.30 at $217.53. Today’s FCE auction didn’t accrue any sales; there were offers of $115 in Texas and $115.50 in KS, which were both passed on. There will be an additional online auction Friday. Some cash sales of $115 were reported for KS and TX this afternoon. As of 11/13, the USDA estimated WTD cattle slaughter under federal inspection was 349,000 head, which is less than last week and the running total through the same Wednesday last year.

Dec 19 Cattle closed at $118.100, down $1.650,

Feb 20 Cattle closed at $124.100, down $1.475,

Apr 20 Cattle closed at $125.675, down $1.375,

Nov 19 Feeder Cattle closed at $145.575, down $2.225

Jan 20 Feeder Cattle closed at $142.825, down $4.300

Mar 20 Feeder Cattle closed at $143.325, down $3.500

--provided by Brugler Marketing & Management



Lean hog futures are 27 cents lower for Apr contracts, but Dec and Feb lost triple digits on Wednesday’s round of trading. The 11/11 CME Lean Hog Index 50 cents lower at $58.94. Wednesday’s pork carcass cutout value was down $1.52, while picnic and belly made gains of $150 and $1.37 respectively. The national average base hog price was 49 cents lower to $42.24 for Wednesday afternoon. The USDA estimated weekly FI hog slaughter as of 11/13 was 1.428 million head; that is 48,000 head behind last week’s pace.

Dec 19 Hogs closed at $63.125, down $1.600,

Feb 20 Hogs closed at $74.550, down $1.000

Apr 20 Hogs closed at $81.750, down $0.275

--provided by Brugler Marketing & Management



Cotton futures were 29 to 52 points lower after the close. CONAB issued a 2.73 MMT forecast of 19/20 Brazilian cotton crop, which is 10,000 above the October estimate. The Seam reported online cotton sales of 7,082 on 11/12. Cotton exports to China have been low enough over the last few years to persuade some analysts to adjust 2020/21 cotton planted acreage down; of course as harvest is still under way for this crop. Bear in mind there is a lot that can happen from now until then. The Nov 12th Cotlook A Index dropped 95 points, down to 75.00 cents/lb. The AWP of 56.63 cents/lb will be updated tomorrow.

Dec 19 Cotton closed at 64.22, down 52 points,

Mar 20 Cotton closed at 66.05, down 45 points

May 20 Cotton closed at 67.24, down 44 points

Jul 20 Cotton closed at 68.37, down 29 points

--provided by Brugler Marketing & Management






Market Commentary provided by:

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