Headlines:
Above-Average Corn, Soybean Potential Seen in Southeast S.Dakota
Favorable late-season rains and milder temperatures should result in above-average corn and soybean yields in southeast South Dakota, according to crop scouts on an annual survey of the top U.S. production states. But a more advanced corn crop could trim yield potential slightly as hot weather earlier in the summer accelerated crop maturity and may prevent kernels from fattening as much as they would in a more prolonged season, scouts said on the first day of the four-day Pro Farmer Midwest Crop Tour. The midsummer heat also limited end-to-end pollination on ears in some fields. Corn yields along one route of the tour were calculated at 168.5 bushels per acre (bpa) on average, based on samples from five fields in Minnehaha, McCook, Hanson, Davison and Aurora counties. That was above average yields of 158.6 bpa in the same area last year and the tour’s three-year average of 165.4 bpa. But it was slightly below the latest U.S. Department of Agriculture (USDA) projection for the state. “These are the districts that USDA is thinking would pull up the state yield. Based on what we’ve seen this morning, they may be a little high,” said Ted Seifried, analyst with Zaner Ag Hedge and a scout on the tour.
China defies U.S. pressure as EU parts ways with Iranian oil
China, seeking to skirt U.S. sanctions, will use oil tankers from Iran for its purchases of that country’s crude, throwing Tehran a lifeline while European companies such as France’s Total are walking away due to fear of reprisals from Washington. The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East. China, which has cut imports of U.S. crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran. On Monday, sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports. The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were reimposed after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program. “The shift started very recently, and it was almost a simultaneous call from both sides,” said one source, a senior Beijing-based oil executive, who asked not to be identified as he is not allowed to speak publicly about commercial deals. Tehran used a similar system between 2012 and 2016 to circumvent Western-led sanctions, which had curtailed exports by making it virtually impossible to obtain shipping insurance for business with Iran.
Summary:
Wheat headed lower pulling corn futures down with it. Forecasts that called for beneficial rainfall across the Midwest today and for the balance of the week was the primary catalyst for the drag in wheat. Weekly corn export inspections were reported at 1.096mmt versus 1.262mmt last week. The corn condition ratings came in 2% down from last week at 68% Good to Excellent. The 1stday of the crop tour is underway and the findings are showing yields in Ohio and South Dakota that are slightly above average. Soybean futures opened higher on hopes for renewed cooperation between the US and China but those hopes fizzled as the day progressed. Prices ended up closing near the day’s lows since there was no traction on the reported potential talks with China. The crop tour reports showed above average pod counts in South Dakota and Ohio. Weekly soybean export inspections came in at 639k mt and that was without Chinese business. Last week’s figure was at 581k. Managed Money has taken to liquidating long positions which has led to a big selloff today. Prices were also under pressure from talk of Russian plans sell nearly 2.0mmt of their wheat reserves, which is 4-times their initial plans for 500k metric tons. Weekly wheat export inspections were quite low coming in at 345k mt versus 487k mt last week.
