Headlines:

  • Toxin in U.S. Corn Harvest Poses Latest Headache for Farmers
    North American farmers are finding increased levels of a plant toxin known as vomitoxin in this year’s corn harvest, adding insult to injury for growers already suffering as the U.S.-China trade war hurts soybean exports and crop prices. Vomitoxin sickens livestock and can also make humans and pets fall ill, and grain buyers can reject cargoes or fine farmers for shipments that contain it. More cases than normal are likely in the corn crop because wet weather this autumn caused the fungus to develop while delaying harvests, Iowa State University grain quality expert Charles Hurburgh said on Monday. About three-fourths of U.S. corn is used domestically to feed livestock and make ethanol and a byproduct called distillers’ dried grains that is fed to animals. However, livestock and ethanol producers need to blend corn that contains vomitoxin with corn that does not to make it suitable for feed when toxin levels are high. “Hogs don’t like the taste and don’t like the smell. They will literally starve to death before eating it,” said Indiana grain inspector Doug Titus of Titus Grain Inspection, whose company has labs at Andersons Inc, a crop handler, and energy company Valero Energy Corp sites.
  • Trade Agreement, Crop Prices Push Up Farmers’ Optimism, Ag Barometer Shows
    U.S. farmers are a lot more optimistic about the current conditions of the ag economy and future expectations, according to the Purdue University/CME Group Ag Economy Barometer. October’s reading of the monthly barometer rebounded to 136, a 22-point increase in the index compared to September, leaving the barometer nearly equal to its level one year ago, according to a Purdue University press release. “This month’s recovery in the barometer was underpinned by improved perceptions of both current conditions and future expectations as the Index of Current Conditions rose 19 points to a reading of 115 and the Index of Future Expectations rose 24 points to a reading of 146,” the Purdue University spokesman stated in the release. “Month-to-month shifts in barometer readings continue to be quite large as U.S. agricultural producers are buffeted by shifts in major commodity prices and news about trade negotiations with key ag trade partners.” Crop prices and trade agreements propped up some of the optimism, according to the press release. In early October, the Trump Administration announced that a new trade agreement, referred to as the U.S.-Mexico-Canada Agreement, had been reached.

Summary:

The corn market was marginally weaker on the day with the harvest continue to progress despite the rains from over the weekend. The USDA crop progress report showed corn harvest at 76% complete and still lagging the five-year average of 77% complete. The soybean market was mixed on the day also finishing with a small loss. The harvest continues to lag but the Chinese is not showing any interest in US soybeans. The crop progress report showed soybean harvest at 83% complete compared to the 5-year average of 89% complete to this point in the year. COFCO’s President, Yu Xubo, was quoted as saying that it is “very hard at this stage to buy US soybeans”. COFCO accounts for 20% of China’s total soybean imports. The wheat markets gained support overnight and through the day on great number from the crop progress report. The USDA crop progress showed winter wheat planting at 84% complete compared to the 5-year average of 90% complete. The USDA also reported winter wheat condition at 51% good/excellent, down from last week’s 53% good/excellent.