Good Morning from Allendale, Inc. with the early morning commentary for November 12, 2019.
Grain markets remain mixed on traders’ growing fears the U.S.-China trade deals will not materialize. In addition, markets continued to feel harvest pressure as many farmers battle the abnormally cold temperatures to try and finish this year’s harvest.
USDA weekly crop progress report will be released today at 3 p.m. CST (due to government closures on Veteran’s Day). Trade is looking for corn harvest rating at 65% complete (52% complete last week, 84% last year, 84% 5-year average). Soybean harvest rating at 83% (75% last week, 87% last year, 92% 5-year average).
President Trump is expected to announce this week he is delaying a decision on whether to slap tariffs on cars and auto parts imported from the European Union, likely for another six months, EU officials said. "We have a solid indication from the administration that there will not be tariffs on us this week," one EU official said.
An Arctic blast hammering the northern U.S. is forecast to break more than 400 cold-temperature records in the next 48 hours and bring a potentially crop-damaging freeze to Texas and other Gulf states. Every state east of the Mississippi River, with the exception of Florida, is expected to see at least one record-cold temperature through Wednesday, said Alex Lamers, a meteorologist with the National Weather Service.
Brazilian government said in a statement the Saudi Food and Drug Authority has approved eight Brazilian beef exporting plants, as the two countries seek to boost business ties. The approvals come on the heels of an official visit to Saudi Arabia by President Jair Bolsonaro last month. "It is a great start to the week," said Ag Minister, Tereza Cristina Dias.
Egypt aims to buy between 6 million and 6.2 million tonnes of imported wheat in the current fiscal year, Supply Minister Ali Moselhy said. “Egypt has enough strategic wheat stocks to last until March 16, 2020,” Moselhy told Reuters.
OPEC and allied oil producers will probably extend a deal to limit crude supply, but are unlikely to deepen their cuts, Oman's energy minister said in response to the U.A.E. saying it was not worried about long-term growth in oil demand. "Extension probably, (deeper) cuts I think unlikely unless things happen in the next couple of weeks," the energy minister of non-OPEC Oman, Mohammed bin Hamad al-Rumhy, told reporters.
February live cattle futures continued to rally as they have seen a $20.62 gain since they bottomed out on September 9th. Over the next few months, the Nebraska/Texas corridor can expect on average two winter storms that will also provide support to future prices.
China detected African swine fever in piglets being illegally transported in its southwest city of Chongqing, the Ministry of Agriculture and Rural Affairs said. The virus was found in 25 piglets in a truck in Dianjiang county, the ministry said.
Dressed beef values were mixed with choice down 0.53 and select up 0.43. The CME feeder index is 146.52. Pork cut-out values were up 3.67.