Good Morning from Allendale, Inc. with the early morning commentary for November 27, 2020.
Grain Markets were closed overnight but will reopen this morning at 8:30 AM CST due to the Thanksgiving holiday. Below are the headlines from the last couple of days:
Weekly export sales will be released today due to yesterday’s holiday. Traders expect to see corn sales of 800,000 to 1,400,000 tonnes, soybeans 700,000 to 1,400,000, and wheat 200,000 to 450,000.
Brazil’s 2020/2021 soybean output seen at 133.2 million tonnes versus government estimate of 134.953 million. Total corn output seen at 108.8 million tonnes versus government estimate of 104.891 according to Agroconsult. (Reuters)
The Buenos Aires Grains Exchange said that Argentina’s soybean plantings were 39.3%, corn 31.9%, and wheat 30.9%. They estimate that rains across the crop areas improved soil conditions, but that dry areas remain.
The International Grains Council (IGC) on Thursday cut its forecast for global corn (maize) production in the 2020/21 season, mainly due to diminished outlooks for crops in the United States, Ukraine and European Union. In its monthly update, the inter-governmental body reduced its global corn crop forecast by 10 million tonnes to 1.146 billion tonnes. The IGC raised its forecast for 2020/21 world wheat production by 1 million tonnes to 765 million tonnes. (Reuters)
Statistics Canada will be out with estimates of Canadian crop production next Thursday 7:30 AM CST. Traders expect to see All Wheat at 34.6 million tonnes vs. last months 34.1447.
Weekly ethanol production showed a rebound from last week’s 962,000 barrel per day pace, now at 990,000. In this week, one of higher virus concerns, production rose also on a year/year basis. It went from -6.9% to -6.5%. Year to date production is -6.1%. USDA is sitting at a -6.5% guess for the year.
Weekly jobless claims totaled 778,000 last week, higher than the 733,000 Dow Jones estimate. That also was higher than the 742,000 from a week ago. Continuing claims fell to just above 6 million though those losing benefits and filing emergency claims surged. (CNBC)
European countries are rushing to contain spread of Bird Flu as the continent continues to battle coronavirus pandemic. Thousands of chickens are being culled in several countries. Public Health England (PHE) has said that H5N8 strain of the bird flu is unlikely to risk public health but precautions are being taken across the continent. (WION News)
China’s biggest wholesale food market has suspended the sale and storage of chilled and frozen meat and seafood as the government ramps up inspections of cold-chain goods after several new cases of coronavirus infections. (Reuters)
The Fed Cattle Exchange started the week’s trading off with sales on three of the four lots offered. One moved at $110.75 and two sold at $111. Later in the day, we saw confirmed sales in Texas and Kansas at $111. Dressed trades were noted at $174 in the North for a period of time. USDA reported last week’s average live based trade at $109.57 and dressed at $171.70 for the All Grades grouping.
Dressed beef values were higher with choice up 0.76 and select up 1.19. The Feeder cattle index is 137.30. Pork cut-out values were up 0.77.