Agriculture Opening Wrap 12/12/17: Amat Victoria Curam.

 

AgriCharts Market Commentary by Brugler Marketing, LLC

 

Corn

Corn futures are trading fractionally higher this morning. They ended the Monday session with most contracts 2 to 4 cents lower, pressured by another week of low export inspections. Open interest showed some net new selling, up 9,011 contracts in the preliminary report. Most of that was in the March. The USDA announced a private export sale of 110,000 MT of corn to Mexico for 17/18 delivery Monday morning. Their weekly Export Inspections report indicated shipments of 658,403 MT for the week ending 12/7. That was 24.53% lower than this week last year but up 8.8% from the previous week. Analysts are estimating the USDA will trim the 17/18 US corn ending stocks number by 9 mbu to 2.478 bbu later this morning. World ending stocks for 17/18 are projected to be trimmed 1.14 MMT to 202.72 MMT.

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Soybeans

Soybean futures are currently 1 ½ cents lower after losing 5 to 7 ½ cents on Monday and failing to hold overnight gains. December meal was down $4.00/ton, with nearby bean oil 14 points in the red. Monday morning’s USDA Export Inspections report showed 1.230 MMT in exports during week of 12/7. That was a drop of 31.78% from the week prior and 33.31% behind this time a year ago. The USDA is expected to increase the 17/18 US ending stocks number for soybeans 15 mbu to 440 mbu, as traders are looking for a cut in projected exports. On the world side ending stocks were seen at 97.83 MMT in surveys, but the market acts like it expects a larger number.

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Wheat

Wheat futures are mostly 1 cent lower to 1 cent higher this morning, with Minneapolis spring wheat the weakest of the three classes. They saw losses of 4 to 5 1/2 cents in most CBT and KC contracts, with MPLS 1 to 2 1/2 cents lower. All wheat exports for the week that ended last Thursday totaled 316,867 MT. That is 38.87% lower than this time last year and down 32.9% from last week. Analysts are expecting to see a slight reduction in the world wheat ending stocks number on Tuesday, mainly from lower expected Australian production. That ending stocks number is estimated at 267.05 MMT, down 0.48 MMT. US ending stocks are estimated to be 938 mbu, up 3 mbu from November. Egypt’s GASC is seeking wheat for January 21-31 delivery, with results expected later today. Russia has the inside track, but there are still concerns about the ergot issue.

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