Good Morning from Allendale, Inc. with the early morning commentary for July 12, 2019.
Grain markets are lower after shrugging off the updated U.S. harvest forecasts as the USDA has said that it will resurvey acreage in the coming weeks to fully account for the severe planting delays across the Midwest. Following widespread planting delays this spring, traders await the USDA's Aug. 12 report in which the government expects to release updated planting figures for corn, soybeans and several other crops.
President Trump said China was not living up to promises it made on buying agricultural products from American farmers as the two largest economies in the world work to resolve their trade dispute. "Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon!" Trump said on Twitter.
U.S. economic adviser, Larry Kudlow said U.S. expects China to start purchasing crops and U.S. agricultural products soon and noted that trade talks between the two countries are ongoing.
Weekly export sales showed corn sales of 397,000 tonnes (estimated 250,000 to 700,000 tonnes), soybean sales of 261,700 tonnes (estimated 250,000 to 750,000), wheat sales of 284,400 tonnes (estimated 250,000 to 550,000), soymeal sales at 52,600 tonnes (estimated 50,000 to 300,000 tonnes), and soyoil sales at 8,600 tonnes (estimated 5,000 to 25,000 tonnes). Beef export sales of 21,458 metric tonnes (32% over last year, YTD sales of 589,911 tonnes) and pork export sales of 11,253 metric tonnes
USDA's July WASDE report showed 2019-2020 ending stocks corn at 2.010 billion bushels (1.675 billion bushels last month, 2.195 billion bushels last year), soybeans at 795,000 million bushels (1.045 billion bushels last month, 1.070 billion bushels last year) and wheat stocks at 1.000 billion bushels (1.072 billion bushels last month, 1.102 billion bushels last year. Corn production at 13.875 billion bushels (13.680 billion bushels last month, 14.420 billion bushels last year). Soybean production at 3.845 billion bushels (4.150 billion bushels last month, 4.544 billion bushels last year).
Cargill Inc. and ADM have reached a deal to swap some of their grain elevators in the Midwest in a deal expected to close later this summer, both companies said. The deal includes a sale by Cargill of its Mount Vernon and Evansville, Indiana, elevators on the Ohio River to ADM. In return, ADM will sell its Beardstown, Naples and Keithsburg, Illinois, elevators along the Illinois River to Cargill, representatives from both companies said.
Managed money funds were estimated buyers of 18,000 corn contracts, 6,000 soybeans, 8,000 wheat, 4,000 soymeal and 3,500 soyoil contracts in yesterday's trade.
Iran called on Britain on Friday to immediately release an oil tanker that British Royal Marines seized last week on suspicion it was breaking European sanctions by taking oil to Syria, a foreign ministry spokesman told state news agency IRNA. (Reuters)
Wall Street banks are bailing on the troubled U.S. farm sector according to a Reuters analysis. Ag loan portfolios of the nation's top 30 banks fell $3.9 billion (17.5% decline), to $18.3 billion, between their peak in December 2015 and March 2019, the analysis showed.
Bulgaria has detected new cases of African swine fever in a dead wild boar and a dead pig near the Romanian border, the national food safety authority said. Bulgaria has already reported nine cases of African swine fever in eight villages in the northern region of Pleven.
Dressed beef values were lower with choice down .65 and select down 0.10. The CME feeder index is 139.32. Pork cut-out values were up 0.57.