Good Morning from Allendale, Inc. with the early morning commentary for September 2, 2020.
Grain Markets are mixed as traders turn to the latest in yield and production estimates. Attention will also be paid to 8:00 AM overnight export sales to see if signs of strong demand continue.
The Results of Allendale’s Nationwide Producer Survey will be released in a webinar this morning at 10:00 AM CDT. Don’t forget to register for the live webinar here!
USDA reported 185 million bushels of soybeans were crushed in July, and that 424.4 million bushels of corn were used for fuel alcohol in the same month.
Soaring corn prices are stoking food security jitters in China, where food inflation has climbed to the highest in over a decade and President Xi Jinping made a recent high-profile plea for an end to wastage. (Reuters)
StoneX lowered it’s soybean yield forecast from 54.2 to 52.9 bpa. Production estimates dropped from 4.496 billion bushels to 4.388 billion. The corn crop was lowered to 15.085 billion bushels from 15.320 on a yield of 179.6 bpa.
ANEC estimates that Brazil will export 82 million tonnes of soybeans this year and 31 million to 33 million tonnes of corn.
China has suspended barley imports from Australia’s grain exporter CBH Grain, claiming pests have been found on several occasions. CBH denies the issue, and the move is seen as escalating trade tensions between the two countries.
Cepea, a Sao Paulo University linked research center, states that the price of Brazilian ag commodities have hit new records as strong demand and a weaker currency drive prices higher.
Statistics Canada is scheduled to release its estimates of Canadian total crop stocks as of July 31, 2020, on Friday, Sept. 4, at 7:30 a.m. CDT. All wheat is expected at 5.7 million tonnes.
October hog futures filled some of the upside gap from Friday’s gap lower trade. There is still seven cents to go, 55.27. The downside gap for the October is still open, 52.82 to 53.17. Let’s get the upside gap filled tomorrow then monitor for any signs of a failure back at these higher prices.
Monday’s new record post-virus hog processing, 486,000 head, was revised down to 476,000. That fits in with talk of mechanical issues. Yesterday was noted at 480,000.
Argentina has delayed until November the signing of a memorandum of understanding with China aimed at increasing investment in Argentine hog output, a government source said on Tuesday, citing environmental protests over the planned export deal. (Reuters)
$104/$105 cash cattle trades were noted on light volume yesterday. That would be seen even with last week’s later trends. It must be noted there were reports of select packers bringing bids down after those sales.
Intermountain Packing will add a plant in Idaho for up to 500 cattle and bison per day. This will be open next fall. This comes on top of the July announcement from Agribeef that it would build a 550 head per day cattle plant also in Idaho.
Dressed beef values were mixed with choice up 0.39 and select down 0.57. The Feeder cattle index is 140.52. Pork cut-out values were up 1.92.