US Corn Conditions Drop Slightly
Jun 26, 2018
US Corn Conditions Drop Slightly, Soybeans Unchanged
The USDA’s Crop Progress report has dropped Corn G/E rating by 1% to 77%. Colorado and Minnesota saw the biggest G/E drops with -6% and -4% respectively. Corn was 67% G/E this time last year. Soybean conditions were unchanged at 73% G/E. This rating is 7% better than last year and 5% better than the 5-year average as the entire Midwest has seen good moisture and temperatures this growing season. Spring wheat dropped 1% to 77% G/E, up from last year’s 40% G/E when much of the Northern Plains was severely drought stressed.
Mixed Messages From The White House Regarding Chinese Foreign Investment
Reports from the WSJ early yesterday morning suggested that firms with at least 25% Chinese ownership would be prevented from buying US companies that possess “industrially significant technology”. Treasury Secretary Steven Mnuchin tweeted that these reports were “false- fake news”, stating that this investment blocking is not specific to China. Mnuchin is much more dovish on the trade war with China. The Trump Administration is set to make more announcements regarding investment restrictions this Friday.
China Removes Tariffs On Livestock Feed Of Asian Origin To Meet Their Demand For Soybeans
Import tariffs on soybeans, soymeal, rapeseed, and fishmeal will be removed July 1 as China seeks alternatives to US Soybeans. The countries exempted are Bangladesh, Laos, South Korea, Sri Lanka, and India, all of which are rather small producers. Last year, India grew 11 MMT of beans but only exported 269,000 MT and exported none of the 7 MMT of rapeseed grown in the same crop year. This follows yesterday’s news that China has approved imports of French beef, which were previously banned due to concerns of mad cow disease which hasn’t been an issue in Europe for nearly 20 years. China is the world’s #2 importer of beef, importing nearly $3.3 billion worth in 2017.
Agroconsult Reduces Their Brazilian Second Crop Estimate Following Crop Tour
Agroconsult, a private Brazilian consulting firm, cut their safrinha corn crop estimate down by 1.8 to 55.2 MMT, citing planting delays back in February and drought stress. They made no changes to their export estimate at 28 MMT, despite skyrocketing freight costs following the trucker protests back in May. Grain handlers at Brazilian ports have halted farmer purchases due to these rising transportation costs.
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