Planting Progress Better Than Expected

Good Morning from Allendale, Inc. with the early morning commentary for May 5, 2020.

Grain Markets slid lower during yesterday’s trading session and are lower again overnight.  Traders will continue to focus on demand and U.S.-China trade tensions.

USDA Weekly Crop Progress Report showed corn planting at 51% complete (48% expected, 27% last week, 21% last year, 39% average).  Soybean planting at 23% complete (21% expected, 8% last week, 5% last year, 11% average).  Hard red Spring wheat planting at 29% complete (30% expected, 14% last week, 19% last year, 43% average).  Winter wheat conditions at 55% GTE (53% expected, 54% last week, 64% last year).  Cotton planting at 18% complete (13% last week, 16% last year, 17% average).  

USDA weekly grain export inspections showed corn exports at 1,217,000 tonnes (850,000 to 1,100,000 expected), soybean exports at 318,000 tonnes (400,000 to 600,000 expected) and wheat exports at 536,000 tonnes (400,000 to 650,000 expected).

Trump administration is “turbocharging” an initiative to remove global industrial supply chains from China as it weighs new tariffs to punish them for its handling of the coronavirus outbreak, according to officials familiar with U.S. planning.  The U.S. is pushing to create an alliance of “trusted partners” dubbed the “Economic Prosperity Network,” one official said.  It would include companies and civil society groups operating under the same set of standards on everything from digital business, energy and infrastructure to research, trade, education and commerce, he said. (Reuters)

Brazilian soybean exports in April reached 16.3 million tonnes (an all-time monthly record) an increase from 9.4 million tonnes in same month last year, according to government data.  The previous record was 12.35 million tonnes, set in May 2018.

Private exporters reported to the USDA export sales of 115,800 metric tons of corn for delivery to unknown destinations during this marketing year.  Conversely, Trade is expecting another poor ethanol report tomorrow.

Costco said it has limited the number of beef, pork and poultry products customers can buy, as grocery stores prepare for massive shortages of meat supplies following supply disruptions.  Costco said it would temporarily limit fresh beef, pork and poultry purchases to a total of 3 items per Costco member.  Costco is also requiring all shoppers to wear masks or face coverings to reduce the chances of transmission of the virus.

The coronavirus crisis will continue to idle U.S. meat plants and slow production, Tyson Foods Inc.  said, signaling more disruptions to the U.S. food supply.  “Tyson is working with government officials to resume operations at a massive beef plant it closed in Dakota City, Nebraska,” Chief Executive, Noel White said.

U.S.’s capacity to slaughter hogs has dropped by about 50% from before the pandemic, Tyson President Dean Banks said.  “The company consolidated its product offerings to help keep supplies flowing to consumers,” he added.

Dressed beef values were higher with choice up 32.60 and select up 19.53.  The Feeder cattle index is 118.91.  Pork cut-out values were up 1.20.

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