Chinese Companies Consider U.S. Ag Purchases
Good Morning from Allendale, Inc. with the early morning commentary for July 22, 2019.
Grain markets are headline watching as U.S.China trade talks show signs of progress. Strong storms and excessive heat hit most U.S. crops this weekend as uncertainty grows over acreage levels as it hangs over the markets until the August USDA WASDE report (August 12th).
Annual Allendale Ag Leaders Summer Conference begins tomorrow at 2:00 p.m. CDT. Drew Lerner of World Weather, Inc. will kick off our webinar series with his insight into what kind of weather we can expect as we head into harvest and beyond. Dont miss this opportunity to join us by Registering online, or call Zach at 800-262-7538 for best pricing.
Last week, September corn futures were down 22.5 cents, August soybeans down 12.25 cents and September wheat down 19.5 cents. Soyoil futures were down 12 points and soymeal down $3.70.
USDA Weekly Crop Progress report will be released today at 3 p.m. CST. Trade is looking for corn condition rating at 59% GTE (58% GTE last week, 71.4% 5-year average). Soybean condition rating at 54% GTE (54% GTE last week, 67.2% 5-year average).
NASS head, justifying dropping objective yield data collection for Aug crop report, says they get better data from famers for Aug survey than from field counts. FSAs certified acres data, in addition to satellite data and farm survey results, will be used in forecasting USDAs August planted and harvested area forecasts.
Chinese companies are seeking new purchases of U.S. agricultural products, China's official Xinhua news agency said. Chinese businesses have made inquiries with U.S. exporters to buy crops and agricultural products and applied for the lifting of tariffs, Xinhua said, citing Chinese authorities.
CFTC Commitments of Traders showed funds new net position long +187,260 corn contracts, long +2,999 soybean contracts, short -11,623 wheat contracts, long +3,690 live cattle contracts and long +1,534 lean hog contracts.
U.S. Democratic senators slammed the USDA's plan to relocate hundreds of its economists and other researchers from Washington to the Midwest, saying it will hurt the agency's research capabilities by prompting many to resign.
Cattle on Feed and Cattle Inventory reports (for June) showed On Feed as of July 1 at 101.8% of last year (estimated 101.8%), Placements at 97.7% (estimated 98.2%), and Marketings at 97.0% (estimated 97%). For Cattle Inventory, All Cattle showed at 100.0% of last year (estimated 99.9%).
Cold Storage will be released today at 2:00 PM CDT. We estimate end of June pork stocks at 594.548 million pounds. Beef stocks are estimated at 388.791.
Chinas Ag Minister says African swine fever is contained and recovery in both hog production and sales is underway.
Dressed beef values were higher with choice up 0.08 and select up 0.90. The CME feeder index is 138.67. Pork cut-out values were up 1.93.