Good Morning! Paul Georgy with the early morning commentary for April 25, 2017.
Grain markets are lower as US farmers rush to plant their crops ahead of the coming rains. Outside markets await new news on tensions with North Korea, policy reforms out of Washington, as well as the Consumer Confidence report this morning.
Will we see last minute US acreage shifts? We'll speak to AgriGold Agronomy Manager, Mike Kavanaugh about the potential of the 2017 corn crop, and his thoughts on acreage expectations in our next Ag Leader's Monthly Webinar tonight at 8:00 PM. Click here to sign up for the free event.
China's corn imports in March totaled just 5,262 tonnes according to General Administration of Customs data. This total is 99.1% lower than March 2016, and the lowest monthly import since September 2013.
Crop Progress had corn planting advancing from 6% to now 17% through Sunday. That was over the trade’s 15% expectation, but under the 18% five year average. Emergence was estimated at 4% complete. That is the same as the five year average as well as last year at this time.
Soybean planting estimate was estimated at 6% complete. That was over the 3% trade expectation. It is also over the 3% posted for both the five year average and last year.
Spring wheat planting advanced from 13% to 22% complete. This was right on the trade estimate. It is under the 34% five year average and last year’s 40%. Emergence was 5% complete, under the 8% five year average.
The US ag attache to Paraguay estimates soybean planting will fall by 3% for the spring 2018 harvest. That would come due to an increase in second crop corn. Production is estimated at 9.4 million tonnes. USDA's official estimate for the spring 2017 harvest was 10.1.
Egypt's minister of supply suggested that Egypt has 2.6 months worth of wheat in its strategic reserves. They are expected to buy 3.8 million tonnes from local farmers over the next six months.
Managed money funds were estimated buyers of 8,000 corn, 8,000 soybeans, and 5,500 soymeal contracts in yesterday's trade. They were estimated sellers of 3,500 wheat 3,500 soyoil.
The US Senate confirmed Sonny Perdue to serve as Agriculture secretary by a vote of 87-11 yesterday afternoon. President Trump and the White House took several weeks longer than is typical in getting his paperwork to the Senate Agriculture Committee.
The economic calendar has the Case-Schiller Home Price Index, and FHFA Housing Price Index at 8:00 AM CDT, New Home Sales, and Consumer Confidence are also out today at 9:00 AM.
Cold Storage was reported at 464.469 million pounds for beef, below the average estimate of 491.8. This is the third month in a row of larger than normal drawdowns. Pork stocks were reported at 555.052 million lbs. This was near the 546.1 analyst estimate.
End of March pork stocks were reported at 555.052 million lbs. This was near the 546.1 two-analyst trade estimate. The pork stock number computes to a 31 million lb. drawdown from the end of February. That was over the 21 million lb. decline seen on the five year average.
Dressed beef values were higher with choice up 1.51 and select up .40. The CME Feeder Index is 139.41. Pork cutout value is down .98.
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