Good Morning from Allendale, Inc. with the early morning commentary for October 22, 2019.
Grain markets continue to show low trading volumes, with minimal fund activity as traders continue to focus on weather and the farmers ability to complete harvest efficiently. Grain markets are stabilized by strong storm activity with strong winds and heavy rains forecasted to hit the Midwest this week.
President Trump said he thinks a trade deal between the United States and China will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on Nov. 16 - 17. "I think it will get signed quite easily, hopefully by the summit in Chile, where President Xi and I will both be," Trump said.
USDA weekly crop progress report showed corn conditions at 56% GTE (expected 54% GTE, 55% last week, 68% last year). Corn harvest rating at 30% complete (expected 34% complete, 22% last week, 48% last year, 47% 5-year average). Soybean conditions at 54% GTE (expected 53% GTE, 54% last week, 66% last year). Soybean harvest rating at 46% complete (expected 42% complete, 26% last week, 51% last year, 64% 5-year average). Spring wheat harvest at 96% complete (expected 97% complete, 94% last week, 100% last year, 100% 5-year average). Winter wheat planting at 77% complete (expected 77% complete, 65% last week, 71% last year, 75% 5-year average).
Allendales Fall Corn and Soybean Outlook Update was last week. If you missed it, you missed a look at what might be coming our way in these markets. What should we expect for harvest this year, and what could that mean for pricing? What will be the next catalyst to move markets? The recording of the presentation is available here, now.
Brazil's soybean crop planting has progressed to 21% complete, this is below last year's 34% level as scarce rains delayed sowing work, according to AgRural. Although slower than last year, planting in Brazil is in line with their five-year average with above average planting in the state of Mato Grosso, the consultancy said.
Saudi Arabia's SAGO bought 605,000 tonnes of wheat in a tender. The wheat was bought at an average price of $242.51 per tonne, SAGO said. Origins offered were the European Union, Black Sea region, North America (excluding Canada), South America and Australia with the seller having the option of selecting the origin supplied, SAGO governor Ahmad Al-Fares said.
Cargill resumed receiving cattle for slaughter at its Dodge City, Kansas, beef plant yesterday after an explosion last week, a Cargill spokesman said. The explosion, which occurred in a stand-alone building outside the main facility and injured two workers, prompted the company to suspend some shifts last week and stop receiving livestock.
China has booked 397,563 tonnes of U.S. pork for 2019 delivery. U.S. has already shipped out 221,904 tonnes, leaving 175,659 tonnes for shipment from October 10 - December 31. Although this is very strong demand, it still does not cover the 1.171 billion in extra U.S. pork production lined up for the 4th quarter of this year.
Dressed beef values were mixed with choice up 2.09 and select up 1.40. The CME feeder index is 145.96. Pork cut-out values were up 1.50.