In the News

The next issue of Agri Marketing will include a salute to Zoetis as it celebrates its fifth anniversary. For more information contact Audrey Evans at AudreyE@AgriMarketing.com

WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	-0.0150	3.6975	3.4150
Soybeans	-0.0100	8.8675	9.8500
Wheat	-0.0675	5.0200	4.2900
Cattle	-2.50	114.58	122.47
Hogs	-2.33	55.80	63.17
Cotton	-0.70	78.09	68.29
Milk	-0.73	14.45	15.76
Crude Oil	-2.91	60.23	57.17

There were losses across the ag complex amid ample supplies and a surging U.S. dollar. The weekly losses were, however, limited in the grains, despite USDA's mostly-negative Supply and Demand report on Thursday. The big bearish news came from huge increases in estimated Chinese supplies, particularly for corn. This overshadowed USDA's reduction in U.S. corn yield. The report raised the expected domestic 2018-19 soybean carryout to 955 million, far above the prior year's 438 million, as a large cut in projected exports more than offset a crop yield reduction. While weather across the Midwest has been inhospitable for late harvesting, the corn and soybean crops are still large, and the weather in South America has largely been favorable early in the season. Cotton futures struggled despite a friendly USDA report that factored in crop losses in the southeast and ongoing problems in West Texas. The dollar's rise to a 1 ½-year high and continued weak export demand remain negative factors for cotton. Crude oil futures plummeted below $60 on robust production in the U.S. and elsewhere, although it looks as if OPEC members and Russia are poised to dial back production to bring the market back into “balance.”

In the livestock complex, both lean hogs and live cattle tumbled. Cash market weakness was a factor in both markets, driven in part by pre-Thanksgiving seasonal pressure. Wholesale beef prices were weaker throughout the week. Wholesale pork values are weak as well: The pork cutout value has fallen 12% since mid-October and ended the week down 2.9% from a year earlier. Chinese and Mexican pork tariffs remain a drag on pork exports. African swine fever in China remains a supportive factor for lean hog futures, as China has now reported at least 55 outbreaks in 14 different provinces.

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