AgriCharts Market Commentary

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Corn

December 14, 2017

Corn futures closed the day with most contracts fractionally in the red, after spending much of the morning fractionally higher. The daily range was microscopic! This morning’s USDA Export Sales report showed 866,918 MT in corn sales for the week of December 7, on the lower end of expectations. That is down 1.08% from the week prior and 42.03% lower than this week last year. Japan was the lead buyer at 182,900 MT, with Columbia purchasing 126,400 MT. Mexico, the largest importer of US corn, purchased just 22,747 MT. Export shipments for that week totaled 690,824 MT, a jump of 16.6% from last week but still 49.44% lower than last year. Mexico was the primary destination, bringing in 273,900 MT. The Rosario Grain Exchange left their estimate for 2017/18 Argentine corn production on 41.5 MMT, compared to the USDA’s 42 MMT.

Dec 17 Corn closed at $3.36 1/4, down 1/2 cent,

Mar 18 Corn closed at $3.48 1/2, down 1/2 cent,

May 18 Corn closed at $3.56 3/4, down 1/2 cent

Jul 18 Corn closed at $3.65, down 1/2 cent

Soybeans

December 14, 2017

Soybean futures saw losses of 8 to 11 3/4 cents in most contracts. December meal was down $3.90/ton, expiring at $321.20, as nearby bean oil expired 9 points lower. Old crop soybean export sales of 1.423 MMT were reported in this morning’s weekly report, edging just into analysts expectations. That came in 4.4% larger than this time last year but 27.9% lower than the previous week and not even hinting at sales momentum. China purchased 872,300 MT, with 384,200 MT switched from unknown. There was 113,240 MT reported for new crop sales. Shipments of soybeans fell 37.5% from last week to 1.261 MMT, down 29.9% from a year ago. Soy meal sales came in at a MY high of 455,402 MT, with soy oil totaling 14,522 MT in sales. The meal market didn’t seem to be impressed. Analysts are expecting Friday’s NOPA report to show 163.191 mbu of soybeans crushed by NOPA members in November.

Jan 18 Soybeans closed at $9.67 3/4, down 11 1/2 cents,

Mar 18 Soybeans closed at $9.78 3/4, down 11 3/4 cents,

May 18 Soybeans closed at $9.89 3/4, down 11 3/4 cents,

Aug 18 Soybeans closed at $10.01 1/4, down 11 1/4 cents,

Dec 17 Soybean Meal closed at $321.20, down $3.90,

Dec 17 Soybean Oil closed at $33.02, down $0.09

Wheat

December 14, 2017

Wheat futures settled with most contracts 1-5 cents higher, as nearby Dec expired today. The USDA showed a sharp improvement in all wheat old crop export sales, rising to 588,834 MT. That was a jump of 83.2% from a week ago and 10.8% larger than last year. There were also 9,500 MT reported sold for 2018/19 delivery. Thailand was the largest buyer of old crop wheat at 96,000 MT, with Morocco purchasing 90,000 MT. Shipments of all wheat totaled 300,811 MT, down 24.11% from last week and 18.71% lower than a year ago. Japan purchased 147,696 MT of wheat from Australia, Canada, and the US in their regular weekly tender, with 95,366 MT from the US. Argentina’s 2017/18 wheat crop is estimated at 17.3 MMT according to the Rosario Grain Exchange, 1 MMT larger than previously projected.

Dec 17 CBOT Wheat closed at $3.95, up 2 3/4 cents,

Dec 17 KCBT Wheat closed at $4.02 1/2, up 3 1/2 cents,

Dec 17 MGEX Wheat closed at $5.99 3/4, unch,

Cattle

December 14, 2017

Live cattle futures finished the day with most contracts steady to 77.5 cents higher. Feeder cattle futures were 30 to 82.5 cents in the green on Thursday. The CME feeder cattle index on December 13 was up 67 cents to $154.31. Wholesale boxed beef values were lower on Thursday afternoon. Choice was down $1.44 at $201.04, with select $1.33 lower at $183.69. Estimated week to date FI cattle slaughter was 475,000 head through Thursday, 2,000 head fewer than the previous week but 15,000 head larger than the same week last year. Beef export sales for 2017 during the week of 12/7 came in 130.2% above last week at 6,136 MT, which was well above last year’s net reductions for this week. There were also 8,637 MTs report for 2018 sales. Shipments of beef were down slightly from week at 16,341 MT. There were cash bids of $116 in NE today but no confirmed trades.

Dec 17 Cattle closed at $116.275, up $0.625,

Feb 18 Cattle closed at $119.150, up $0.775,

Apr 18 Cattle closed at $120.300, up $0.100,

Jan 18 Feeder Cattle closed at $146.250, up $0.600

Mar 18 Feeder Cattle closed at $144.350, up $0.300

Apr 18 Feeder Cattle closed at $144.700, up $0.675

Lean Hogs

December 14, 2017

Lean hog futures were mixed on the day, with the front months 77.5 to 82.5 cents higher as back months were steady to lower. December expired up 7.5 cents at $64.025. The CME Lean Hog Index for 12/12 was down 11 cents to $64.86. The USDA pork carcass cutout value was up 80 cents at $77.31 in the Thursday afternoon report. The ham and belly were lower, with the rib up $6.89 and the butt $4.53 higher. The national base hog price was 38 cents lower at $56.61 this afternoon. The USDA week to date FI hog slaughter was 1,866,000 head WTD through Thursday. That was up 12,000 head from the previous week and 102,000 head more than the same week last year. The USDA reported 2017 pork export sales of 17,321 MT in the week ending 12/7. That was down 23.5% from a week ago but nearly triple the same week in 2016. Sales of 2018 pork came in at 19,818 MT. Exports of pork were shown at 24,131 MT, 1.1% larger than last year.

Dec 17 Hogs closed at $64.025, up $0.075,

Feb 18 Hogs closed at $67.625, up $0.825

Apr 18 Hogs closed at $72.250, up $0.775

Cotton

December 14, 2017

Cotton futures posted triple digit gains in most nearby contracts, with back months 14 to 41 points higher. This morning’s Export Sales report showed 259,661 RB in old crop upland cotton sales, a jump of 39.17% over last week but down 16.69% from last year. Turkey purchased the largest amount of old crop at 63,300 RB, with Vietnam buying 59,500 RB. There was an additional 35,992 RB in new crop upland sales. Export shipments of upland fell 32.5% from last week at 166,568 RB, which was 23.72% lower than a year ago. Pima sales totaled 10,100 RB. The USDA Adjusted World Price (AWP) was updated to 65.95 cents/lb, 92 points higher than the previous week. The Cotlook A index was unchanged from the previous day to 83.45 cents/lb on December 13.

Mar 18 Cotton closed at 75.330, up 120 points,

May 18 Cotton closed at 75.630, up 108 points

Oct 18 Cotton closed at 73.570, up 41 points


Market Commentary provided by:

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