Good Morning from Allendale, Inc. with the early morning commentary for June 19, 2019.
Grain markets are lower with corn down 3, soybeans down 3, and wheat down 8. Markets will continue to focus on weather map updates as traders wait for next Friday's acreage report to make sense of what has really been planted. Headline's ahead of next weekend's G-20 meeting will also be watched closely.
The Trump administration is looking to make further changes to ethanol rules after the president heard from farmers during a recent trip to Iowa that an initiative to boost sales of the corn-based fuel additive didn’t go far enough, according to people familiar with the matter. (WSJ)
Russia may restart exports to Iran according to Energy Minister Alexander Novak. Prior to 2016 Iran was one of Russia's biggest buyers, but they slowed their purchases after an attempt to ramp-up their own domestic production.
Weekly ethanol production will be released this morning at 9:30 AM CDT. Traders will look to see if last week's 4% over last year number was the start of a new trend in higher production.
Managed money funds were estimated sellers of 18,000 corn contracts, 7,000 wheat, and 3,000 soymeal. They were buyers of 5,500 soybeans and 5,000 soyoil.
President Trump tweeted, "Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting." The G-20 is set to take place June 28th and 29th.
Allendale released estimates for Friday's Cattle on Feed report today. We see May feeder and calf placements into feedlots at 6.8% under last year. We see May marketings at 0.2% under last year. At 2.052 million, that would be the second highest in eleven years for May. That helps bring June 1 Cattle on Feed to 1.0% over last year.
USDA's Cold Storage report will be released next Monday. We see end of May beef stocks at 404.135 million lbs. That would come from a 26.211 million decline from the previous month. We see end of May pork stocks at 610.516 million lbs. on an 11.347 million lb. decline during May.
China is blocking pork imports from Canada's Frigo Royal, now the third Canadian firm to be blocked. China's customs agency claimed the most recent shipment from the company contained ractopamine, a feed additive banned in China.
The government of Vietnam said on Tuesday that it had culled more than 2.6 million pigs in order to try and contain the spread of the African swine fever virus that has affected the livestock sector in the country. The virus, which is said to be harmless for humans, was first detected in the country in February and has spread to 58 of the 68 provinces, the ministry of agriculture and rural development said. (Reuters)
Dressed beef values were lower with choice down 1.29 and select down 0.71. The CME feeder index is 133.21. Pork cut-out values were down 1.82.