Good Morning from Allendale, Inc. with the early morning commentary for February 25, 2020.
Grain markets attempted a recovery while fears over the rapid spread of the Coronavirus outside of China weighs down the broader markets as well as the dollar. Fears that the outbreak will grow into a pandemic with disruptive consequences for countries around the world, after infections sharply rose in South Korea, Italy and Iran with new cases found in Kuwait, Bahrain and Iraq.
The Trump Administration is asking Congress for $2.5 billion to fight the fast-spreading coronavirus, including more than $1 billion for vaccines, the White House said. The money will be used for therapeutics, vaccine development and the stockpiling of personal protective equipment such as masks, the White House added.
USDA weekly grain export inspections showed corn exports at 913,000 tonnes (600,000 to 950,000 expected), soybean exports at 595,000 tonnes (600,000 to 1,100,000 expected) and wheat exports at 412,000 tonnes (350,000 to 600,000 expected).
China’s customs office said on Monday it had conditionally lifted a ban on beef and beef products from U.S. cows more than 30 months old. China initially lifted a 14-year ban on U.S. beef in 2017, allowing imports of deboned and boned beef from American cows under 30 months old. (Reuters)
Private exporters reported to the USDA export sales of 163,290 metric tonnes of soybeans for delivery to Mexico during this marketing year.
Americans should avoid all nonessential travel to South Korea due to the coronavirus outbreak, the U.S. CDC said. South Korea reported 60 new cases of the coronavirus, increasing the total number of infected patients in the country to 893, the Korea CDC said.
Ukraine’s grain harvest this year is likely to fall to between 65 and 70 million tonnes from a record 75.1 million tonnes in 2019, deputy minister for development of economy, trade and agriculture said. ProAgro earlier this month said Ukraine’s grain harvest this year was likely to fall 3.19% to 72.673 million tonnes, due to a smaller winter wheat sowing area and unfavorable weather. (Reuters)
USDA cold storage report showed 625.188 million pounds of total pork stocks for the end of January (expected 658.867 million pounds). Beef stocks were seen at 489.136 million pounds (expected 492.034 million pounds).
China will release another 10,000 tonnes of frozen pork from state reserves to the Hubei province, state broadcaster CCTV reported. China has already released 10,000 tonnes of frozen pork from its strategic reserve earlier this year for use in Wuhan city.
Dressed beef values were higher with choice up 1.98 and select up 0.67. The Feeder cattle index was at 141.02. Pork cut-out values were up 1.32.