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North Mountain Ag Services

North Mountain Ag Comments December 20, 2018

NORTH MOUNTAIN AG COMMENTS
December 20, 2018

  • Lean hog are seeking direction as production expectations point to large pork supplies. Traders are selling the market based on continued worries regarding US export opportunities. Trade reports indicate that ASF could be more prevalent in Asia than earlier thought, leading to a glimmer of optimism for world consumption in early 2019.

 

  • Corn futures are flat to slightly stronger as US harvest is only slightly behind the historical average. There are mold and toxin issues in many areas, resulting in firm basis projections for end users.

 

  • Soybean delivered prices are under pressure as weather continues to point to potential high South American yields in 2019. Soybean meal basis continues to weaken, although at a slower pace than the rest of the soy complex.

 

  • Feeder cattle prices are currently trading 8% higher over last year, although the lack of opportunities to forward price at profitable levels would tend to indicate that the current strength is based on nearby availability.

 

  • Nearby milk futures are trading at $13.74 at the beginning of this today‚Äôs session. Deferred contracts are sluggish, with 2019 offerings averaging $15.82.

 

  • Wheat quality will be watched very closely over the next month. Current yield reports are pushing prices lower, with nearby wheat trading in a window around $5.24 per bushel.

 

As always, please call us for customized strategies that maximize your opportunities to protect and manage profit margin.

Brian Yingling (717) 585-9772

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