AgriCharts Market Commentary

Corn

Corn futures are trading double digits lower at midday on Friday. Pressure from lower crude oil and strength in the dollar is pushing prices lower. Ethanol giant VeraSun announcing some plants will not be taking corn in IA and plants in NE have been idle for 2 weeks, this is bearish to futures and demand, as the survival outlook for the giant is looking glum at the moment. Dec -11 ¼ at 3.52 ½.

Soybeans

Soybeans are trading only a few cents lower at midday in most contracts. Export sales were better than expected for last week and could limit losses today. Harvest weather improved dramatically this week and should permit farmers to come close to completing bean harvest this week. Outside markets add additional pressure to beans and the rest of the soy complex. Jan -4 at 8.52 Dec Meal -1.20 at 256.00 Dec BO -.13 at 30.50.

Wheat

Wheat futures are getting pushed lower by other grains and outside influences during midday trade. Sever losses in stock market has put pressure on grains and other commodities this week and traders are cautious as volatile trade remains very present. Winter wheat weather remains benign for pre dormant growth. Dec CHI -7¼ at 5.04 ½ KC -8 ¼ 5.40 MLPS -4 at 5.96.

Cattle

Cattle futures are mixed to steady at midday. Trade is quiet for the most part at midday, trade is cautious ahead of USDA monthly Cattle on Feed report that will be released after trade is closed this afternoon. However, trade is thought to have already factored in the report in futures. Cash trade was $85 in NE this morning called $5/cwt lower from last week, and few reports of cattle trading in the country at $138 on a dressed basis. Morning Boxes: Choice -227 at $155.52 Select -102 at $145.13. Dec LC +10 at 85.90 Jan FC +5 at 89.80.

Hogs

Hogs are inching higher again at midday, and could close higher for the 4th time this week. Prices are receiving support from higher cutout values and better cash bids. Hog slaughter weights are declining, adding support to prices. CME’s Lean Hog Index is off 21 cents at $52.52. USDA will release their monthly Cold storage report later this afternoon. Squaring of positions ahead of the report is noted. Dec LH +20 at 57.00 Feb PB +175 at 89.35.

Cotton

Cotton futures are soaring higher at midday, posting gains of more than 150 points in several contracts. Deliveries against the Dec contracts totaled 1720 with JP Morgan stopping the majority. Open Interest dropped 3502 contracts Thursday with most of the decrease coming from the nearby Dec contract which is in delivery. Dec +205 at 41.69.

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: www.bruglermktg.com