Good Morning! Paul Georgy with the early morning commentary for May 23, 2017.
Grain markets are lower as traders weigh crop progress numbers against weather forecasts. Outside markets look to this morning's New Home Sales report, as well as the impact of president Trump's trip abroad. The terrorist attack in Manchester adds to a risk-off sentiment.
Allendale’s Ag Leaders Monthly Webinar is set for TONIGHT at 8:00 PM CDT.
The topic this month is South America's Impact on U.S. Prices. We will be speaking with Pedro Dejneka, who just returned from a trip to Brazil. He will share his insight on how South American agriculture, exports, currencies, and more could impact grain prices here in the U.S.
Can't make it live? Registration gets you access to the webinar recording as well.
Corn plantings were reported at 84% complete through Sunday according to USDA's weekly crop progress. That was just under the 85% trade estimate and five year average. Emergence was reported at 54% complete, next to the 55% five year average. USDA will begin the weekly nationwide crop ratings next Tuesday.
Soybean plantings increased from 32% to now 53% complete. This was next to the 52% trade expectation that also happens to be the five year average. Emergence of 19% is just under the 21% five year average.
Spring wheat planting was reported at 90%, right on the trade estimate. It is over the 84% five year average by this point. Emergence is at 62%, over the 59% five year average.
Nationwide crop ratings are expected to make their debut next week, however, individual states can release their own numbers. Illinois posted an improved 51% corn good to excellent, up from 42% last week. Iowa’s corn crop was rated 75% good to excellent.
Weekly export inspections for the week ending May 18, 2017 had soybean exports of 348,535 tonnes, corn 1,144,187, and wheat 674,559.
Managed Money Funds were estimated buyers of 8,000 corn, 3,000 soybeans, and 1,500 soymeal in yesterday's trade. They were estimated sellers of 2,500 wheat, and 1,500 soyoil.
US Beef Exports to China are set for a July 16 start date. The beef will be required to come from animals with no growth additives. Additionally, a farm to package ID system will be needed.
Weekly cattle showlist numbers fell by 26,800 head from the previous week. These are numbers bought this week and harvested at US packing plants next week.
Cold Storage, out yesterday afternoon, reported beef stocks of 458.460 million lbs at the end of April. This was over the 444.4 trade estimate, and 6 million under the previous month. Pork stocks were reported at 599.112 million lbs, over the 586.4 trade estimate. The monthly change in stocks is a 50 million lb increase over March.
Cattle on Feed estimates were released yesterday by Allendale. We see On Feed as of May 1 at 99.8% of last year, Placements at 104.6%, and Marketings at 101.3%. If realized, the placement number would be the largest April number in six years.
Dressed beef values were higher with choice up .74 and select up 1.41. The CME Feeder Index is 142.88. Pork cutout value is up 1.45.
Technical Chart of the Day
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