Ag Market Commentary
BRUG - Wed Nov 13, 7:29AM CST

Corn futures are 1 to 1 3/4 cents lower this morning after bouncing 3 to 4 1/2 cents on Turnaround Tuesday. US corn harvest was in line with trader anticipations, with the USDA stating that the 18 states have progressed 14% since 11/03. Corn harvest was 66% complete on 11/10, which is well behind the 85% average for this time of year. North Dakota was 61% below their average pace, with So Dak reported 45% behind normal. WI and MI were also more than 30% behind their average pace. Also mentioned in the weekly report, sorghum harvest was ahead of average by 8 percentage points. USDA Corn export inspections outpaced anticipations, with a near double (97.43% increase) over last week. The 560,105 MT for the week ending 11/07 was still well below last year’s 1.158 MMT in weekly exports. For the YTD the USDA has inspected 4.321 MMT of corn exports, 61.2% below last marketing year’s pace of 11.138 MMT.

---provided by Brugler Marketing & Management

Soybean futures are 1 to 1 1/2 cents lower, excluding soon to expire November. It is fractionally higher. Soys closed fractionally mixed on Tuesday. Soybean meal was $1.70/ton higher at the close, with soybean oil finishing 39 points lower. The USDA Crop Progress Report on Tuesday afternoon reported that national soybean harvest was right in line with trader expectations, 85% complete. Harvest averages 92% completion for the time of year, however harvest is now only 2 percentage points behind last year’s pace. Soybean export inspections released Tuesday morning by USDA showed 48.929 mbu of soybeans for the week ending 11/07. That was just below the same week last year and 5.475 mbu less than last week. The MYTD accumulated export inspections for soybeans are 7.01% above 18/19’s pace.

--- provided by Brugler Marketing & Management

Wednesday wheat is starting off Wednesday with 3 to 4 cent losses due to profit taking. Wheat futures finished Tuesday’s session higher, with Kansas City HRW futures leading the way with 16 cent gains. Chicago SRW wheat also topped double digit gains, closing 11 1/4 cents. MPLS HRS gained 6 1/2 cents on Turnaround Tuesday. Traders had underestimated weekly wheat export inspections, as the 528,875 MT were well above the expected range of 250-350,000 MT. Wheat export inspections are 44.42% higher than the week ending 10/31 and were 33.03% higher than the same week last year. The MY accumulated export inspections for wheat are now 421.07 mbu, which is 79 mbu above last year’s pace. The Crop Progress report, delayed by the holiday, illustrated that winter wheat planting was on schedule at 92% planted and 78% emerged.

-- provided by Brugler Marketing & Management

Live cattle futures finished mixed, with Dec and Feb down 10 to 12 cents and Apr gaining $0.22. Feeder cattle futures gained as much as 22 cents (nearby Nov). The 11/08 CME Feeder Cattle index gained 68 cents to $146.52. Wholesale boxed beef prices finished the day with more gains. Choice boxes gained $1.91 to $240.50, in August prices topped $241 for a short time, but the last time choice boxes have been as high as $240 was 6/22/17. Select boxes gained $2.54 for the day to finish at $216.23. Today’s FCE auction will have 1393 head listed with 3/4 sourced from Nebraska. USDA estimated WTD cattle slaughter under federal inspection is 231,000 head, which matches the same week last year’s pace.

--provided by Brugler Marketing & Management

Lean hog futures rallied triple digits for Turnaround Tuesday, gaining as much as $1.82. The 11/08 CME Lean Hog Index fell by $0.85, to $59.44. The pork carcass cutout value gained $2.19 on the day and finished at $88.53. The national average base hog price was 10 cents higher to $42.69. The USDA estimated FI hog slaughter through Tuesday was 936,000 head; that is 48,000 head behind last Tuesday’s estimation. Since the National Day festivities, domestic pork prices in China have skyrocketed. Chinese officials are reportedly planning new policies to maintain price levels, one of which is to import American poultry as a substitute to expensive pork, and the other is to require private storage firms to release their supplies (some hoarding has been reported).

--provided by Brugler Marketing & Management

Cotton futures are trading 7 to 20 points lower after they closed 13 to 35 points higher on Tuesday. Cotton harvesters tried to get ahead of this week’s forecasted wet weather, as the USDA crop progress report indicated cotton harvest is about a week ahead of last year’s pace, and is 3 percentage points ahead of average with 62% of the 19/20 crop harvested. Online cash sales reported on The Seam from Veteran’s Day were 1,130 bales, last week’s total was 20,117 bales at a weekly average (average) price of 57.86 cents/bale. The Cotlook A Index for 11/11 was 55 points higher to 75.95 cents/lb. The AWP will remain at 56.63 cents/lb through tomorrow.

--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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