Wheat Council Confirms Low Yields
Jul 28, 2017
Good Morning! From Allendale, Inc. with the early morning commentary for July 28, 2017.
Grain markets continue to trade the latest map updates as we near the critical time of year for the US soybean crop. Some position evening is to be expected into the weekend. Outside markets have a couple of important economic reports to monitor this morning.
Did You Miss Our Conference?
Our Ag Leaders Conference Series wrapped-up yesterday. If you didn't see them, you missed out latest outlooks, price projections, and trade strategies for corn, soybeans, wheat, and livestock. Recordingsof all commodity outlooks are now available.
Wheat Quality Council's three-day crop tour announced estimated hard red spring wheat crop yield at 38.1 bushels per acre after their tour of North Dakota. Last year's findings were 45.7 bpa and their five-year average is 46.8 bpa.
CAMEX, Brazil's Chamber of Foreign Trade, announced a 30-day delay of a decision on a proposal to impose a 20 percent tariff on U.S. ethanol imports.
Weekly export sales for the week of Friday July 14 - Thursday July 20 reported corn sales of 578,611 metric tonnes (91,968 old 486,643) new). This combined sale was within the 400,000 - 900,000 trade expectation. New crop corn sales currently total 157 million bushels. That is the lowest new crop booking in seven years.
Soybean export sales totaled 835,212 metric tonnes (303,368 old 531,844 new). That was within the 400,000 - 1,400,000 expectation. New crop soybean export bookings come to 221 million bushels so far. That is the lowest new crop booking in 10 years.
Wheat export sales for this week came to 498,042 metric tonnes (498,042 old 0 new). That was within the 350,000 - 550,000 trade expectation. We have so far sold 364 million bushels of US wheat in the marketing year that started on June 1. That is the best pace for this specific week in four weeks.
The International Grains Council lowered its world corn production forecast by 5 million tonnes to a 1.02 billion tonne figure. The world wheat crop was lowered by 3 million to 732.
European Union soybean imports for the 2017/18 season totaled 720,000 tonnes as of July 25th. At this same time last year, the total was 1.2 million tonnes.
Managed money funds were estimated buyers of 5,000 corn contracts, 6,000 soybeans, 1,500 wheat, and 3,000 soymeal in yesterday's trade. This afternoon's Commitments of Traders report will be watched for official fund positioning.
Economic reports out this morning include GDP and Employment Cost Index at 7:30 AM CDT, and Michigan Sentiment at 9:00 AM.
Record 4th Quarter production was a major topic of our hog outlook yesterday afternoon. Production capacity and demand were also discussed.
Cattle weights indicate that feeders are current, and maintaining that is the best hope going forward if we are to put a stop to further near term cash erosion.
Dressed beef values were lower with choice down .64and select down 1.21. The CME Feeder Index is 151.30. Pork cutout value is down .64.
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