Good Morning! Paul Georgy with the early morning commentary for July 29, 2016.
Grain markets are lower as traders wait for the next big story. The US Dollar and stock markets look to today's economic reports and the Bank of Japan's stimulus measures.
Weekly exports sales were released yesterday morning. For soybeans, net old crop sales came to a net cancellation of 1,400 tonnes. Analysts had been expecting old crop sales of 250,000 to 450,000. New crop soybean sales totaled 678,200, within expectations of 600,000 to 800,000 tonnes.
Old crop corn sales were reported at 438,800 tonnes, continuing the recent strong pace. Estimates were for 300,000 to 500,000. New crop sales totaled 476,500; this was also within expectations of 450,000 to 650,000.
Wheat sales for the 2016/17 marketing year came to 506,100 tonnes, hitting analyst expectations of 400,000 to 600,000.
Egypt's state grain buyer received ten offers in it's recent tender for world wheat. The lowest reported offer was $165 a tonne for 55,000 tonnes of wheat from Ukraine, while the highest was Romanian at $177.90.
World corn production was estimated higher by the International Grains Council yesterday. They now see global production at 1.017 billion tonnes, up from their previous estimate of 1.003 billion.
Wheat production estimates were also raised from 729 million tonnes to 735 by the IGC.
The Wheat Quality Council tour wrapped up yesterday with fresh estimates for the hard red spring crop. The council estimates a yield of 45.7 bushels per acre after sampling fields in the Dakota's and Minnesota. Last year's estimate was 49.9.
River basis bids were lower for corn yesterday as demand for corn shipments by barge to the Gulf was limited. Soybean bids were mostly even on steady demand and lack of farmer selling.
Bunge reported higher than expected second quarter earnings citing strong results from their agribusiness unit. They cautioned, however, that slow farmer selling in Brazil and Argentina due to smaller than expected crops would pressure margins.
Weekly CFTC Commitments of Traders report data will be out at 2:30 PM CT today. Funds were estimated to have been net sellers of 10,000 corn, 5,000 soybeans, 3,000 wheat, and 3,000 soymeal contracts in Thursday's trade. They were even in soyoil.
Economic reports out today have GDP at 7:30 AM CT, Chicago PMI at 8:45, and Michigan Sentiment at 9:00.
The Bank of Japan announced they would not cut interest rates, but would increase their purchase of Exchanged-Traded Funds.
USDA pork shipments for week ending July 21 were 18,572 MT. Exports to China were 2,401 MT, the lowest weekly export volume since early February. It appears that the booming exports expected just a few months ago have not developed as of yet.
Market ready cattle supplies should be tightening as marketings have been aggressive the past several weeks. Dressed weights have come down and our goal is to see weights drop to as much as 20 pounds below a year ago, which will help reduce supply.
Dressed beef values were lower with choice down .32 and select down .34. The CME Feeder Index is 141.05. Pork cutout values are down 2.32.
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