Headlines:
- Cargill stops using human antibiotic to prevent disease in turkeys
CHICAGO, Aug 9 (Reuters) – U.S. meat processor Cargill Inc. has stopped using an important antibiotic for people to prevent disease in turkeys, the company said on Tuesday, the latest food maker to drop the drug amid concerns about the impact on human medicine.
U.S. consumers are increasingly pushing food companies and restaurants to move away from using antibiotics to produce meat as part of a trend toward eating foods considered to be healthier and more natural. - The August WASDE Supply & Demand report out Friday at 11:00 am CT
- Commerz warns against grain price gloom – and cotton fervor
Commerzbank urged investors against getting too gloomy over grain and soybean price prospects, but warned against over exuberance in cotton – even as futures in the fiber extended a retreat. The bank cut its quarter-average price forecasts for Chicago futures in corn, soybeans and wheat – by as much as $1 a bushel for soybeans, which it now forecast ending the year at about $10.00 a bushel. Expectations for soybean prices early next year were cut by $0.50 to $10.50 a bushel. However, those forecasts were above the level expected by investors, who were on Tuesday pricing soybeans for delivery in November at $9.94 ½ a bushel, with the March 2017 contract trading at $9.80 a bushel.
Summary:
Yesterday the USDA reported export sales of 246K tons of Soybeans and 162K tons of Corn for the new crop year delivery. Corn ratings experienced its first decline of the year when the USDA reported that 74% of the crop condition was in the good or excellent category versus the 76% reported the previous week. The Midwest was primarily responsible for the small decline. Soybean national condition ratings were unchanged at 72%. USDA rated the U.S. winter wheat harvest as 94% complete (3% above the 5 year average).
Intraday action was mixed today. Beans rallied for the 1st two hours of regular session trading but was softer for the balance of the trading day. November beans reached 999.25 but was only able to finish the day at 988.25 up 3.25 cents. Corn was sideways for most of the day and we anticipate that it will continue consolidating. December Corn lost 1.50 cents on the day. Wheat fell at the regular session open but recovered well off of its lows of the day. The September finished down ½ cent.
The August WASDE Supply & Demand Crop progress report is scheduled for Friday and markets could very well remain in a tight range as we approach the report’s release. Trade sentiment is currently leaning to the bearish side.
