Daily market commentary

Daily market commentary
December 19th, 2023 | Rural Radio Network Staff

The final full week of trading in 2023 is off and underway. Coming to the end of Tuesday money is still favoring the equities on hopes that the Fed will be much friendlier in 2024. The grain complex is torn between macro markets and South American weather so far this week.

In the equity markets traders are still hopeful from last weeks Fed comments that they could potentially see rate cuts coming in 2024. However there could be another developing global issue with the Red Sea this week being closed off by some of the largest shipping companies in the world. Both energy and commercial container shipping companies continue to see heightened threats and attacks from Houthi Rebels. This is forcing shipping companies to abandon the Red Sea and Suez Canal and add close to an additional 3,000 miles from China to Europe across the African coastline.

In the grain complex wheat continues to find strength with global demand seeming to hold fairly well. Although the demand isn’t necessarily coming to the US. The lowest offer for Egypt’s GASC snap wheat tender is $260/MT fob, no purchase has been finalized. Most offers were of Russian origin while a few came from France and Romania. Eight firms are participating in Jordan’s 120K MT wheat tender with results expected later today. Bangladesh has numerous offers for their 50K MT wheat tender. Monday also showed that although there was strong purchases in recent weeks by China for US wheat there haven’t been many shipments yet. USDA data on Monday showed the US shipped 284,000 MT of wheat last week.

Soybeans are closely tied to the South American weather patterns. This week weather patterns have improved for Center West Brazil with beneficial moisture outlook. That has brought pressure back to the soybean complex.

In the livestock complex cattle are slowing on Tuesday as traders wait for cash to develop in the country. Typically this time of year cash starts to seasonally pick up through the end of the year. For hogs weakness in the carcass cutout and weakness in the Dalian commodity futures in China continue to add pressure to the US market.

Last week in the fed cattle trade Northern business took place on Wednesday and Thursday with a little cleanup on Friday. Dressed deals had a full range of $264 to $268, mostly $267 to $268, $2 to $3 lower than the prior week’s weighted average, basis Nebraska. Southern live trade developed midafternoon on Friday at mostly $170, roughly $1 lower than the previous week’s weighted averages.

For the week ending December 09, 2023, Imported Beef Passed for Entry in the U.S. totaled 49,489, 96.83% of the previous week and 106.66% of the 4- week average.

Daily slaughter estimates Tuesday


124,000 hd today 127,000 hd wk ago 124,000 hd yr ago


491,000 hd today 474,000 hd wk ago 490,000 hd yr ago

Tuesday Midday Carcass Cutout


Choice up 0.02 288.95

Select dn 0.30 263.42

C/S Spread 25.53

Loads 68


Carcass dn 1.03 82.94
Bellies dn 11.77

Loads 156

Pre-opening grains with Mark Gold of Top Third Ag Marketing

Pre-opening livestock with Jerry Stowell of Country Futures

Midday market commentary with Mike Zuzolo of Global Commodity Analytics

Closing livestock market commentary with David Ericson of Ag Optimus

Closing grain market commentary with John Payne of Hedge Point Global Markets


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