Silage Harvest Begins Early in Western Cornbelt
Aug 03, 2017
Good Morning! From Allendale, Inc. with the early morning commentary for August 3, 2017.
Grain markets remain soft as weather forecast suggests increased chances of rain in the Midwest with temps staying cool. Old crop supplies of corn seem to be providing the wall of resistance ahead of USDA’s August Supply and Demand report next week.
GFS weather model run in the United States increased rainfall in eastern Kansas and western Missouri Saturday into Sunday. Rainfall was decreased in eastern Iowa, much of Wisconsin, and the eastern Dakotas Saturday into Monday. In week 2, rainfall was increased from western Kansas and eastern Colorado northeast through eastern South Dakota Aug. 9. Amounts were also increased in West Texas Aug. 15-17.
Export sales report will be released later this morning at 7:30. Trade is estimating 2016/17 sales for corn to be 100,000 to 300,000 tonnes and soybeans 100,000 to 300,000 tonnes. Estimates for 2017/18 crop year are: wheat 300,000 to 500,000 tonnes, corn 400,000 to 600,000 tonnes and soybeans 250,000 to 450,000 tonnes.
Funds were estimated to have been net buyers on Wednesday of 5,000 corn contracts and 4,000 soybeans. They were net sellers of 1,500 wheat contracts.
Ethanol production this past week ran 1.002 million barrels per day which was 0.2% under last year. Production rates have been moderated for the past nine weeks and our year to date pace is 4.4% over last year, slightly ahead of USDA’s projection of 4.3% growth year over year.
Allendale computes corn for ethanol is not as efficient as it was last year. Based on yesterday’s monthly ethanol by-product report from USDA, we compute that June ethanol production was made from 2.93 gallons per bushel efficiency rate, 1.3% under last year’s rate for the same month.
Three top Democratic senators, in a rare show of bipartisanship, on Wednesday urged U.S. President Donald Trump to stand up to China as he prepares to launch an inquiry into Beijing’s intellectual property and trade practices in coming days. (Reuters)
U.S. dollar hit the lowest level against the euro in more than 2-1/2 years on doubts about another Federal Reserve interest rate increase this year which has traders bargain hunting and short covering.
Fed Cattle Exchange auction on Wednesday had only 54 head selling at $116. After the auction, packers raised their bids from 115 to 118…