June 29 Global Ag News Headlines

Overnight trade has SRW up roughly 3 cents, HRW down 1; HRS Wheat down 1, Corn is up 3 cents; Soybeans down 1, Soymeal up $0.50, and Soyoil down 15 points.

For the week, SRW Wheat prices were down roughly 10 cents; HRW down 8; HRS down 23; Corn was down 20 cents; Soybeans down 19; Soymeal down $3.00, and; Soyoil down 120 points. Crushing margins were down 2 cent at 86 cents; Oil share down 1% at 32%.

Chinese Ag futures (Sep) settled up 100 yuan, up 12 yuan in Corn, down 13 in Soymeal, down 132 in Soyoil, and down 156 in Palm Oil.

Malaysian palm oil prices were down at 2,325 ringgit (basis September) on cheaper rival oils, stronger ringgit.

U.S. Weather Forecast

The Midwest will see showers and thunderstorms with moderate rainfall to the eastern region through Wednesday of this week; activity then looks to taper off just a few spotty showers/storms for Thursday

The 6-10 day forecast sees ridging to build in and bring limited rains to much of the region

The 11-16 day outlook sees some weak ridging to bring average to below average rainfall to the Midwest with temps to run above average

Temps this week will run near average and then warm to above average for the weekend and into early next week

The Southern US Plains 6-10 day forecast sees ridging to prevail and keep the region dry through the period; temps will above average for the next 10 days

The Delta 6-10 day period sees off and on more rains across the region through most of this period, with totals for the period of 1-2” common

The player sheet had funds net sellers of 12,000 contracts of SRW Wheat; net sold 8,000 Corn; sold 5,000 Soybeans; net sold 4,000 lots of soymeal, and; sold 3,000 Soyoil.

We estimate Managed Money net short 61,000 contracts of SRW Wheat; short 316,000 Corn; net long 32,000 Soybeans; net short 50,000 lots of Soymeal, and; short 11,000 Soyoil.

Preliminary Open Interest saw SRW Wheat futures down roughly 9,700 contracts; HRW Wheat up 115; Corn down 27,300; Soybeans down 21,900 contracts; Soymeal up 2,200 lots, and; Soyoil down 6,300.

There were no changes in registrations—Registrations total 11 contracts for SRW Wheat; ZERO Oats; Corn ZERO; Soybeans ZERO; Soyoil 3,495 lots; Soymeal 511; Rice 106; HRW Wheat 17, and; HRS 488.

TODAY—CANADIAN PLANTED ACREAGE—EXPORT INSPECTIONS—CROP PROGRESS/CONDITIONS— 

Tender Activity—Algeria seeks 50,000t optional-origin wheat—Jordan seeks 120,000t optional-origin wheat—S. Korean feed groups bought 126,000 S. American, South African corn; seeks 70,000t optional-origin feed wheat—

Beijing has begun quietly delivering a message to Washington: U.S. pressure over matters China considers off limits could jeopardize Chinese purchases of farm goods and other U.S. exports under the “Phase One” trade deal; Chinese leaders have accused Washington of meddling in areas such as Hong Kong, where China is imposing a sweeping national-security law, and Taiwan, which Beijing considers as part of China; on Thursday, the U.S. Senate passed by unanimous consent a bill that would put sanctions on Chinese officials, businesses and banks that undermine Hong Kong’s limited autonomy from Beijing.

Chinese demands that overseas suppliers guarantee their food shipments are free of the novel coronavirus are causing some shippers to forego the China trade, an industry group representing U.S. produce growers said; Western Growers, which represents companies that produce half of U.S. fresh fruits, vegetables and tree nuts, confirmed that many of its members had received such requests from Chinese authorities; it’s changing how some of our growers are reacting to the marketplace; some of them are not going to export.

U.S. food and feed exporters are shipping goods to China with letters assuring the safety of their cargo in lieu of official declarations requested by Chinese authorities that guarantee coronavirus-free shipments, a U.S. agricultural export group said; the commitment statements, drafted by the Agriculture Transportation Coalition (AgTC), are meant only to assure importers that shipments have been harvested, processed and handled consistent with industry safety standards and guidelines from medical experts

Kansas Wheat Harvest Update 06/26

Near Lakin in Kearny and Wichita counties, reports that harvest began June 22; wheat is yielding in the mid-30 bushels per acre, and test weights are about 60 pounds per bushel. Protein has been variable at 9-12%

Overall receipts will be below average for the company, especially in the Ulysses location; part of the reason is fewer acres, but this is also caused by a dryer weather pattern and reduced yields this year; test weights are averaging about 60 pounds per bushel, and protein is in the 12s

Stafford County reports wheat is yielding just as expected in the low 50s; test weights 59 pounds per bushel; protein is below average

Hillsboro in Marion County; average yields of 50 to 60 bushels per acre; test weights are 58 to 59 pounds per bushel

Speculators continued buying Chicago-traded soybeans last week on improved prospects for U.S. trade with China, though benign U.S. weather forecasts turned them back into corn sellers after a brief round of short covering in the previous week.

Alberta crop report

Over the months of May and June, precipitation has been at least near normal in most areas including the northern part of the Peace Region, which was consistently dry for previous years; provincially, 79 per cent of crops are now rated in good or excellent condition, above the 5-year average of 70 per cent and the 10-year average of 74 per cent

Pork prices in China continued to fall last month on increased supply and lower demand, official data showed; the average pork price index in 16 provincial-level regions tracked by the Ministry of Agriculture and Rural Affairs was 37.35 yuan (about 5.3 U.S. dollars) per kg in May, down 13.9 percent month on month; the price retreat came as the government took multi-pronged measures to boost supply, including releasing frozen pork reserves and expanding imports

Russia’s June exports of wheat, barley and maize (corn) are expected at 550,000 tons, down from 2.21 million tons estimated in May, the SovEcon agriculture consultancy said.

Euronext wheat slipped to a new three-month low on Friday, weakened by a steep fall in Chicago as the U.S. harvest progressed and forecasters projected large global supplies; front-month September milling wheat was down 1.00 euro, or 0.6%, at 176.25 euros ($197.65) a ton; it earlier fell to 176.00 euros, its weakest since March 18 and slightly below a previous three-month low of 176.50 euros struck earlier this week.

Consultancy Strategie Grains has again lowered its forecast for this year’s rapeseed harvest in the European Union plus Britain, pegging the crop at 16.54 million tons compared with 16.68 million estimated a month ago; the downward revision marked the sixth consecutive monthly cut by Strategie Grains to its EU rapeseed crop forecast and confirmed its expectation that this year’s harvest would fall below last year’s poor crop and would mark a new low since 2006.