AgriCharts Market Commentary

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Corn

Corn futures settled the Wednesday session with most contracts 3/4 to 1 1/4 cents higher. This morning’s EIA report showed ethanol production dropping 19,000 barrels per day from the previous week. That number was still robust at 1.089 million bpd produced during the week of 12/8, the second largest weekly production number on record. Stocks of ethanol fell 170,000 barrels to 2.374 million barrels, while the Gulf and Midwest stocks were up. The USDA tightened the cash average farm price on Tuesday by 10 cents to a range of $2.85-3.55, with the expected average remaining at $3.20. Old crop export sales of corn for the week ending 12/7 are expected to be 0.7-1.1 MMT in tomorrow’s USDA report. Traders are also expecting 0-100,000 MT in new crop sales.

Dec 17 Corn closed at $3.36 3/4, up 1 cent,

Mar 18 Corn closed at $3.49, up 1 1/4 cents,

May 18 Corn closed at $3.57 1/4, up 1 1/4 cents

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

Soybeans

Soybean futures ended Wednesday with 3 to 3 1/2 cent gains in most contracts. December meal was up $2.20/ton, with nearby bean oil down 25 points. Estimates for Thursday’s Export Sales report are running 1.4-2 MMT for old crop soybeans, with 0-100,000 MT for new crop expected by analysts. Soy meal sales are seen at 100,000-300,000 MT, with total soy oil sales expected at 5,000-30,000 MT. The cash average soybean price range was narrowed 30 cents to $8.60-$10.00, leaving the average mid-point at $9.30. Brazil’s ABIOVE expects the country’s crop to hit 109.5 MMT in 17/18. They are also projecting exports in 2017 to be at 67.8 MMT, with exports of 65 MMT in 2018.

Jan 18 Soybeans closed at $9.79 1/4, up 3 1/2 cents,

Mar 18 Soybeans closed at $9.90 1/2, up 3 1/4 cents,

May 18 Soybeans closed at $10.01 1/2, up 3 1/4 cents,

Aug 18 Soybeans closed at $10.12 1/2, up 3 cents,

Dec 17 Soybean Meal closed at $325.10, up $2.20,

Dec 17 Soybean Oil closed at $33.11, down $0.25

Wheat

Wheat futures were 3-7 cents higher in most contracts on Wednesday, with nearby Dec showing thin trade ahead of Thursday’s expiration. Analysts are expecting Thursday’s USDA Export Sales report to show 250,000-450,000 MT in wheat export sales for the week ending December 7. The USDA narrowed the cash average price range for wheat by 20 cents to $4.50-$4.70, as the mid-point was left at $4.60. Iraq is seeking 50,000 MT of US, Australian, and Canadian wheat, with the tender to close on December 19. The French AgriMer trimmed their projection for wheat exports outside of the EU by 0.4 MMT to 9.5 MMT.

Dec 17 CBOT Wheat closed at $3.92 1/4, up 5 cents,

Dec 17 KCBT Wheat closed at $3.99, up 5 cents,

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

Cattle

Live cattle futures finished the Wednesday session with most contracts 20 to 77.5 cents in the red. Feeder cattle futures were down $1.25 to $1.85 in most contracts. The CME feeder cattle index on December 12 was down 25 cents to $153.64. Wholesale boxed beef values were lower on Wednesday afternoon. Choice was down $1.58 at $202.48, with select 90 cents lower at $185.02. Estimated week to date FI cattle slaughter was 355,000 head through Wednesday, 3,000 head fewer than the previous week but 11,000 head larger than the same week last year. This morning’s FCE auction showed 75 of the 704 head sold at a price of $116, with 3 other lots passing on offers of $116.

Dec 17 Cattle closed at $115.650, down $0.500,

Feb 18 Cattle closed at $118.375, down $0.775,

Apr 18 Cattle closed at $120.200, down $0.775,

Jan 18 Feeder Cattle closed at $145.650, down $1.450

Mar 18 Feeder Cattle closed at $144.050, down $1.250

Apr 18 Feeder Cattle closed at $144.025, down $1.300

Lean Hogs

Lean hog futures saw steady to 30 cent gains in most contracts on Wednesday. The CME Lean Hog Index for 12/11 was down 20 cents to $64.97. The USDA pork carcass cutout value was down $4.61 at $76.51 in the Wednesday afternoon report. The loin and picnic were higher, with the ham down $7.67 and the belly $13.81 lower. The national base hog price was $1.08 lower at $57.04 this afternoon. The USDA daily FI hog slaughter was 1,400,000 head WTD through Wednesday. That was up 10,000 head from the previous week and 76,000 head more than the same week last year.

Dec 17 Hogs closed at $63.950, up $0.200,

Feb 18 Hogs closed at $66.800, up $0.275

Apr 18 Hogs closed at $71.475, up $0.300

Cotton

Cotton futures closed the session with 28 to 122 point gains on Wednesday. As expected, the Federal Reserve increases interest rates 0.25% this afternoon. In buy the rumor sell the fact action, the US dollar was down 671 points, providing some support for commodities. The average farm cash price range was raised 3 cents to 63-69 cents, with the mid-point up to 66 cents/lb in the WASDE report. The Cotlook A index was down 75 points from the previous day to 83.45 cents/lb on December 12. Online cash sales of cotton rose to 21,066 bales on the Seam, with prices 79 points higher at 69.23 cents/lb.

Mar 18 Cotton closed at 74.130, up 122 points,

May 18 Cotton closed at 74.550, up 105 points

Oct 18 Cotton closed at 73.160, up 74 points


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