Headlines:

  • US beef packers in clover until 2020, says Tyson Foods
    Tyson Foods forecast strong conditions for US beef-packers for at least the next three years, supported by a boost to cattle supplies, at a time when export growth is supporting demand. Thomas Hayes, the chief executive of Tyson Foods, which is the biggest US meat processor, said that the US beef industry was “at the front end of a multi-year expansion” in cattle supplies, from the multi-decade low hit three years ago. Such an increase in supplies would be “great for Tyson”, besides other meatpackers, in depressing wholesale beef costs. Indeed, with “ample supplies of cattle, we see very good conditions for our beef business as far out as 2020”, Mr Hayes said. “Absent a shock to the system such as a drought or an import ban, our beef business is well-positioned for profitable, long-term growth.”
  • Phosphate prices may find support from Chinese output cuts
    PhosAgro flagged the potential for support to phosphate prices from Chinese production cuts, echoing comments raised by rival Mosaic, as the Russian group unveiled an acceleration in sales, supported by its domestic market. The Moscow-based group acknowledged the weight on phosphate prices in the first half of 2017 from factors including the “ramp-up” of new capacity in Morocco, where sector giant OCP is expanding operations, and in extra exports from Saudi Arabia too. However, it also stressed a rise of almost 25% in exports during the first half of the year from China – where output could be facing cutbacks. “Further potential production cuts in China,” besides a seasonal rise in northern hemisphere and, in particular, Indian demand “may provide extra protection to market prices against additional supply” stemming from OCP and Saudi Arabia’s Ma’aden.

Summary:

As expected, we got a mixed day in trading today. Beans were able to close in positive territory but it was only a 2.75 cent gain. Corn and Wheat turned down. Corn gave back 3.50 cents and Wheat was down 6.50. Export sales and the prospect of dry weather is perhaps giving Beans a bit of a lift but the crop ratings report may be the real story today. The recent rain did prove to help out the drought hit US Spring Wheat crop when it showed its first improvement of the season. That same dry weather was the impetus for the gains in Corn and especially Soybean futures. The USDA pegged Spring Wheat at 32% in the good to excellent category as of Sunday. That was a 1 percentage point gain week on week – the 1st weekly rise in the condition readings for the crop this season. Yesterday’s crop progress report pegged the Corn crop’s good to excellent ratings at 60% compared to 61% the prior week. Soybean crop conditions report saw a 1% increase in the good to excellent ratings. Conditions are 12% lower than last year at this time.