Trade Progress & Export Sales Hold Back Ag Markets
Mar 05, 2019
Good Morning from Allendale, Inc. with the early morning commentary for March 5, 2019.
Grain markets continue to be held back by overwhelming global supplies with a slowdown in Chinese demand for U.S. supplies. But rising expectations of a trade deal with the U.S. and China have raised the prospect of a revival of purchases by China of U.S. agricultural goods. Corn futures price also found support on weather, planting concerns and technical buying.
China says it is cautiously optimistic about reaching a trade deal with the US, but it is prepared to retaliate if the U.S. returns to tariffs after the meeting between the two nations' presidents expected this month. "The nature of the China-US economic and trade relationship is mutually beneficial. Therefore, I hope that both sides can seize the opportunities to continue consultation for a mutually winning agreement," Zhang Yesui, a spokesman and a former vice-foreign minister.
ABARE estimate this season’s Australian wheat production at 23.9 million tonnes, but only if farmers receive desperately needed rain, said Australia’s chief commodity forecaster (17.3 million tonnes last year, 24.4 million tonnes 10-year average).
Managed Funds as of March 1stare estimated short 150,800 corn contracts, short 48,100 soybean contracts, short 99,800 wheat contracts, short 32,400 soymeal contracts and long 19,800 soyoil contracts.
Allendale's annual acreage survey will conclude this Friday, but we can still use your help! US planted acreage intentions will soon become a major trade focus, and your estimates help us all gain insight into what the USDA will report later this month. Submit your acreage estimates here. Thank you!
Saudi Arabia's SAGO said it had bought 625,000 tonnes of wheat in an international tender. "I think the wheat in the Saudi tender today will mainly be sourced from North Europe, with Germany and other Baltic Sea region exporters expected to be among the suppliers," one European trader said.
U.S. Wheat was offered at the lowest price of $294.13 a tonne on a cost, insurance and freight basis (CIF) in Iraq's state tender to purchase a minimum 50,000 tonnes of hard milling wheat which closed yesterday.
The U.S. government plans to issue new guidelines for food companies as early as this week after an increase in recalls of meat and poultry products possibly containing metal, plastic and other foreign materials, a food-safety official said. “The new guidelines will advise food-makers on how to investigate and process complaints and apply information from them to subsequent reports of contaminated products”, said Carmen Rottenberg, administrator of the USDA's Food Safety and Inspection Service.
The USDA will release the February Cattle on Feed report this Friday at 2 p.m. CST.
Dressed Beef Values were higher with choice up 2.26 and select up 0.42. The CME feeder index is 139.59. Pork cut-out values were up 1.01.