The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
The Hueber Report is a grain marketing advisory service and brokerage firm that places the highest importance on risk management and profitable farming.
Click here for a free trial
“Fine.” That was the word used by a U.S. Undersecretary of Agriculture describing the now completed U.S./Chinese trade talks. I do not know about your household, but in mine, the word “fine” usually means not so good. “How was your day?” “Oh, it was fine.” While that may not have been the case here, until more details are forthcoming, we wait in suspense. One thing we do know for sure is that until the tariff on U.S. beans have been dropped, we are not truly competitive into the Chinese market.
In light of the opposing comments presented last evening concerning the border wall and government funding, it would not appear that we are any closer to a resolution so accordingly, the release of government reports remains on hold for now. This marks day 19 of the stalemate.
Not that it does much good; we can continue to mull around the trade estimates, which for now are; U.S. corn production of 14.538 billion bushels from a yield of 177.9. This would be a reduction of 88 million bushels from the last report. The total bean production estimate is 4.568 billion from a yield of 51.75. This would be 32 million bushels lower than previous. Ending stock projections fall in at 1.705 billion in corn- down 76 million, 913 million in beans-down 42 million and 990 million for wheat-up 16 million. The average estimates for the December 1stgrain stocks have corn pegged at 12.095 billion, beans at 3.734 billion and wheat 1.956 billion. Argentine production is currently estimated to be 42.2 MMT for corn and 55.1 MMT for beans, and in Brazil, the current estimates have corn at 93.9 MMT and beans 119.6 MMT. One has to suspect those final numbers could be revised before we see a report.
No comments have been posted to this Blog Post