Ag Market Commentary

Corn futures are lower at midday, down by 2 1/4 to 2 3/4 cents. Preliminary open interest rose 3,248 contracts on Wednesday’s sell off. USDA’s weekly export sales report this morning showed corn export sales were in line with expectations, listed at 487,944 MT through the week ending 10/31. That is 11.1% lower wk/wk, but is up 15% over the previous 4 week average, which is now updated to 474,279 MT. Corn exports were 317,879 MT (12.51 mbu) to bring the accumulated exports up to 3.939 MMT (155.07 mbu). Accumulated exports continue to be below last year’s pace, currently 37.16%. The report also showed that China had purchased 123,000 MT of Sorghum for the week. Up until that point, the country hadn’t made any purchase, or received any shipments of sorghum.

Dec 19 Corn is at $3.76 1/2, down 2 1/4 cents,

Mar 20 Corn is at $3.85, down 2 3/4 cents,

May 20 Corn is at $3.92, down 2 3/4 cents,

Jul 20 Corn is at $3.98, down 2 3/4 cents,

-- provided by Brugler Marketing & Management

Soybeans are on the rally for Thursday’s midday, nearby futures are up by 7 3/4 to 9 1/4 cents. Soybean meal is up by $5.80/ton, earlier this morning the USDA reported a private export sale to the Philippines of 133,000 MT of soybean meal for 19/20 delivery. Soybean oil is 18 points lower at midday. There were zero delivery notices against November futures overnight, as the commercial stopper is in fact sitting on them. The USDA reported a private export sale this morning; China purchased 136,000 MT of beans for 19/20 delivery. Weekly soybean export sales this morning were above traders’ expectations, listed at 1.807 MMT for the week ending 10/31, traders anticipated as much as 1.2 MMT. The sales were 91.5% higher than the depressed previous week, and 41% above the previous 4 week average. The export sales report stated that 1.559 MMT of beans were shipped through the same week, with was 9.5% below the week prior. Of the shipments 821,268 MT (52.66%) were destined for China. The PRC also purchased 956,268 MT of net new sales through the week. Soybean meal was expected to see export sales ranging 150,000 - 300,000 MT in the report, which stated 262,418 MT were in fact sold for the week ending 10/31. Soybean oil export sales were less than estimates, with 3,812 MT for the week ending 10/31.

Nov 19 Soybeans are at $9.23 3/4, up 8 3/4 cents,

Jan 20 Soybeans are at $9.36 3/4, up 9 1/4 cents,

Mar 20 Soybeans are at $9.49, up 8 1/4 cents,

May 20 Soybeans are at $9.60 1/2, up 7 3/4 cents,

Dec 19 Soybean Meal is at $304.70, up $5.80

Dec 19 Soybean Oil is at $31.57, down $0.18

-- provided by Brugler Marketing & Management

Chicago and Kansas City wheat are fractionally lower at midday. MLPS wheat is 3 1/4 cents lower so far. The weekly Export Sales for wheat were 360,568 MT which was down 16.98% compared to last week’s sales and a 45.47% decline over the same week last year. FAS shows 408,500 MT of wheat was shipped out for the week ending 10/31; with the main destinations being Japan (20.95%), Philippines (15.91%), South Korea (15.59%), Mexico (13.17%), and Taiwan (12.44%). Accumulated exports through the first 22 weeks of the MY are 10.766 MMT, which is up 25.47% over last MY’s pace.

Dec 19 CBOT Wheat is at $5.16 1/2, down 1/4 cent,

Dec 19 KCBT Wheat is at $4.27 1/2, down 1/4 cent,

Dec 19 MGEX Wheat is at $5.20, down 3 1/4 cents,

-- provided by Brugler Marketing & Management

Live cattle futures are 15 to 27 cents higher for Thursday’s midday. Nearby feeder cattle futures are seeing gains of $1.32 to $1.50 for Jan and Mar, while Nov contracts remain unchanged at $146.80. The USDA’s weekly export sales report showed beef shipments’ of 15,833 MT. Japan and Taiwan were the leading destinations each with a 25.9% share. The accumulated exports for Beef are 672,502 MT, which is down 6.61%. The net new export sales were 10,127 MT for the week. The 11/05 CME Feeder Cattle index was up 2 cents to $146.26. Wholesale boxed beef prices are continuing to rise. Choice boxes are up 51 cents at Thursday’s midday, and select boxes are higher by $1.45. The USDA has indicated a few early $181 dressed purchases for the WCB. The USDA estimated cattle slaughter is ahead of last week’s pace, with a running weekly total of 352,000 head through Wednesday.

Dec 19 Cattle are at $119.175, up $0.175,

Feb 20 Cattle are at $124.850, up $0.150,

Apr 20 Cattle are at $125.825, up $0.275,

Nov 19 Feeder Cattle are at $146.800, unch,

Jan 20 Feeder Cattle are at $145.750, up $1.325

Mar 20 Feeder Cattle are at $145.475, up $1.500

--provided by Brugler Marketing & Management

Lean hog futures are mixed. Net sales of 16,600 MT reported for the week ending 10/31 were 45 percent lower than the previous week, and 82 percent lower than the prior 4-week average. The weekly export sales report showed 33,545 MT were shipped, which was 3.2% above last week, and 32.7% above the same week last year. The weekly export data does not include all official export reports, which come out monthly with a lag. The Nov. 4 CME Lean Hog Index was lower by 52 cents, at $60.36. USDA’s pork carcass cutout value is down 78 cents at midday. Thursday’s national average base hog price was 46.98, at midday. The week to date USDA estimated Hog slaughter was 1.474 million head through Wednesday.

Dec 19 Hogs are at $64.225, down $0.550,

Feb 20 Hogs are at $73.550, up $0.775

Apr 20 Hogs are at $79.725, up $0.350

--provided by Brugler Marketing & Management

Cotton futures are rallying for Thursday, making gains of 77 to 89 points at midday. Cotton export sales were up 52.09% over last week, at 164,483 MT. With 129,682 rb shipped, cotton exports were lower than last week by 12.97% and were 14.11% lower than the same week last MY. However cotton accumulated exports as of 10/31 were 16.21% above last year’s pace. December options expire on Friday, driving some position squaring.. The Cotlook A Index for 11/6 was back up by 25 points, to 74.95 cents/lb. The AWP will be updated later this afternoon, it has been 57.33 cents/lb since 10/31.

Dec 19 Cotton is at 64.46, up 77 points,

Mar 20 Cotton is at 66.05, up 78 points

May 20 Cotton is at 67.34, up 88 points

Jul 20 Cotton is at 68.45, up 89 points

--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

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