|Wednesday, October 21, 2020 |
Morning Markets: Corn +1. Beans +3. Wheat +2.
Tentative Customer Appreciation Lunches. Subject to weather
Soybeans remain the leader of the market with all attention on the South American planting season. Planting is delayed in Brazil, but is starting to gain momentum, and will soon be at normal rates according to sources in the country. Soybeans are also benefiting from the fact that is not overbought such as the grains are and is enticing buyer interest. Trade is still monitoring the number of Covid cases around the world and what they may mean for commodity demand. Cases are again rising in many regions and thoughts are they may continue as the seasonal influenza period takes place. Ahead of this we are already starting to see some of the world's commodity importers stockpiling food products. So far this has mostly taken place in wheat and in regions of short production. This is centering on the Black Sea. The concern is not just that food grains and products are going to be in short supply but that Covid may cause logistic issues. There are some thoughts that this is a part of the reason China has been buying commodities at the volume they have. This is also happening in Egypt on wheat. The recent announcement that Russia may be issuing quotas on exports is also being credited to worries over future food grain supply.
Crude Oil is down $0.64 at $41.06.
US Dollar is down 0.324 at $92.743.
Global Equities: Japan +0.7%, China +0.8%, and Europe -0.8%.
Dow futures is up 7 points at 28,189.
EU MATIF Exchange: Corn +0.5%, and Wheat +0.2%.
Malaysian Palm Oil: +1.7%.
Dalian- Corn -0.2%. Soybeans -2.2%. Meal +0.3%.
- 6 to 10-day forecast is showing well-below normal temperatures for the Upper Midwest and Northern Plains and dipping as far south as northern Texas. Several waves of energy are expected to move across the Northern Plains, producing moderate to heavy snowfall thus causing harvest / late season fieldwork delays.
- A Bloomberg story is reporting China’s government has no intent in intervening with their record domestic price of corn. Record prices have been driven by the fast recovery of hog production, as well as demand for alcohol and starch. The typhoon flattened region in the northeast will be hand-picked, which will increase costs.
- We anticipate today’s EIA ethanol production report to show production for the week ending October 16th near last week’s 937,000 barrels per day. Ethanol production over the past four weeks has averaged 4.23% below year ago levels. Central Iowa ethanol margins are estimated at breakeven to a few cents profit.
- CONAB says it does not foresee a significant impact in 2020/21 soy production from delays in planting.
- Brazilian government statistic agency CONAB does not expect large quantities of soybean imports in the short term after the suspension of soy and corn tariffs outside of the Mercosur Trade Bloc. Also, the entity does not expect corn imports to change significantly through January 20121.
- Pork supplies during the upcoming Lunar New Year holiday in China will be 30% higher than a year ago, after significant efforts to rebuild a depleted hog herd.
Have a great day!!!!
Emery Manager & Originator:: Topflight Grain Cooperative, Inc.
593 Emery Rd :: Maroa, IL 61756
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