Headlines:

  • USDA predicts 148m tonne EU wheat crop as quality concerns grow
    The USDA has further reduced its estimates of EU cereals production, as drought affects yields in the Southern member states, especially Spain. But August rains appear to be damaging quality in Germany, France and the UK too. The hot weather in June across much of the cereal growing area persisted in Spain and Portugal, and has affected yields, but France, which also experienced hot dry conditions, seems to have escaped the same level of yield reduction. The late July and August rains are now a problem for crops across central and northern Europe. The hot conditions caused them to ripen earlier, while the wet weather is now delaying harvest some with reports of lower breadmaking quality in wheat as measured by the Hagberg falling number test.
  • Marfrig confident after Brazil’s early 2017 beef woes
    Brazil’s multinational meat packing business Marfrig believes that rising world incomes will support animal protein consumption in both the short and longer terms. But the company has posted a reduction in half year figures, which it attributes to uncertainty in its home market. Marfrig  said the IMF’s July forecast for world GDP growth in 2017 is unchanged at 3.5%, while  China’ GDP growth forecast has risen from 6.6% to 6.7%. While the US GDP growth forecast has dropped from 2.3% to 2.1%, consumer spending there is expected to remain strong as unemployment is the lowest for a decade. Even Brazil’s GDP has been revised upwards to 0.3% from 0.2%, in expectation of a gradual recovery.

 

Summary:

Timely rain keeps pushing Corn crop ratings higher and Corn futures prices lower. Additional rain is projected to move through parts of Iowa later in the week and that region will benefit greatly from it. Corn futured ranged from 7.25 to 7.50 down today. They look to continue moving lower over the course of the coming weeks. The USDA’s crop progress report showed a 2% increase in the US Corn crop’s good to excellent ratings. The trade estimates were calling for conditions to remain unchanged. Soybean futures ranged from 10 to 13.25 cents down on the day. The USDA report that the Soybean crop condition declined compared to last week along with positive NOPA Crush report was not enough to help support the price action today. The chart looks poised for additional weakness. Chicago Wheat was the biggest loser on the day from a percentage loss perspective. The Wheat decline ranged from 11.50 to 12.50 cents. The USDA reported a 1% improvement in the Spring Wheat crop condition. The projections for a massive world crop continues to weigh heavily on Wheat futures.