Good Morning from Allendale, Inc. with the early morning commentary for August 29, 2019.
Grain Markets are mixed with longer-term weather maps showing the potential for a cold-snap which could carry a frost risk with it. Traders caution, however, that these maps have a tendency to flip quickly.
Just Two Days Left - Allendale’s Annual Acreage Survey is off to a great start, but we still need your help again this year to make it as successful (and accurate) as possible. Please click here to complete your survey today or please call us at 800-262-7538 to participate. The results will be emailed to all participants at the end of the survey.
Results from our survey will be released in a live webinar next Wednesday, September 4th at 10:00 AM. Register for the webinar here.
Weekly ethanol production rose from 1.023 million barrels per day to now 1.038. That is still weak at 3.0% under last year. Our year to date pace is 1.1% under. USDA’s corn for ethanol goal for the soon to be complete marketing year is 3.2% under last year. Considering we are running these plants at efficiencies 3% over last year, we need to see ethanol production even with last year. We will miss USDA’s corn for ethanol goal.
Weekly export sales will be out at 7:30 AM CDT this morning. Analysts expect to see corn sales of 400,000 to 1,050,000 tonnes, soybeans 150,000 to 1,000,000, wheat 250,000 to 700,000, soymeal 100,000 to 350,000, and soyoil 0 to 25,000.
President Donald Trump will deliver news on how to move forward in mitigating the impact of biofuel waivers issued to oil refiners, which farmers say are destroying demand for ethanol, Secretary of Agriculture Sonny Perdue said on Wednesday. Perdue did not provide a time frame. (Reuters)
StatsCanada estimates 2019 Canadian wheat production at 31.25 million tonnes, a drop from last year's 32.20, and below the 32.30 analyst estimate.
Agritel (a French grain research firm) estimates that France will need to export 20.1 million tonnes of wheat this year after the county produced its second-largest crop in history, 39.2 million tonnes.
Yesterday's hog weight report for the Iowa/Minnesota region showed 277.4 lbs. for last week's regional live weights. That was 0.1% under last year. That is unchanged from the previous week's -0.1%. There is no confirmation of lax marketings at this time.
Brazilian meat firm, BRF SA, said they plan to increase pork production to meet Chinese demand. No specific expansion numbers were discussed. Brazil is the #4 pork exporter.
Confirmation of $106 trades for cash cattle in Nebraska was disappointing. Last week's trade in that region was $108 live and $175 dressed.
US Agriculture Secretary, Sonny Purdue, announced he had ordered an investigation into beef pricing margins. This comes after the sharp rise in prices for wholesale beef and a drop in cash cattle from the fire at Tyson's Holcomb, KS plant.
Dressed beef values were mixed with choice down 3.80 and select up 1.10. The CME feeder index is 138.62. Pork cut-out values were down 2.06.