Headlines:
China to lift ban on imports of UK beef: Hammond
China has agreed to lift a ban on imports of British beef that was imposed over a BSE crisis in the 1990s, finance minister Philip Hammond said on Wednesday. “Delighted that I have agreed with Chinese Vice Premier Hu Chunhua that China will lift the BSE ban on British beef. This is great news for British farmers,” he said on Twitter. Hammond is visiting Beijing this week. The agreement allows official market access negotiations to begin, said a government statement, adding that the process typically takes around three years. The move comes after Prime Minister Theresa May’s trade mission to China in January, when she said China had agreed to lift a ban on British beef exports within the next six months. China is the world’s fastest growing beef market, with imports last year of 700,000 tonnes, worth about $3.3 billion. Beef imports from Britain have been banned since the 1990s following outbreaks of bovine spongiform encephalopathy (BSE), commonly called mad cow disease. British beef exports to China are expected to be worth £250 million ($328 million) in the first five years, said the statement. The deal comes as Britain prepares to leave the European Union next year, its biggest market for agricultural products. “Today’s announcement is a huge coup for British businesses who want to access global trading opportunities as we leave the EU,” said International Trade Secretary Liam Fox in the statement. Other European countries ahead of Britain in getting access to China’s beef market include Ireland, which now has full access, and France, which expects to be able to ship product by September this year.
Will USDA Deliver Silver Bullet for Ag Markets Friday?
The grain markets continue to look for something to change the direction of June’s dismal trading pattern. Will it come on the last trading day of the month? On Friday, the USDA will update its 2018 estimates on U.S. acreage and U.S. Quarterly Grain Stocks. Both reports will be released at 11 a.m. CT. The trade sees the acreage data as the most market impacting. In March, the USDA estimated U.S. corn acres at 88.0 million, while soybean acres were pegged at 89.0 million. Both of the March acreage estimates were down slightly from a year ago. When the trade looks at what the USDA might print Friday, this year’s planting weather has to be considered. April’s weather was cold in the western Corn Belt and northern Plains, possibly leading to switching some spring wheat and corn acres into soybeans. Meanwhile, the eastern Corn Belt states of Illinois and Indiana and parts of Missouri had more ideal planting weather, possibly adding corn plantings. On average, the trade’s estimates for Friday’s June Acreage Report include corn and soybean acres nearly equal to the March estimates. The USDA is expected to peg U.S. 2018 corn acres at 88.52 million and soybean plantings at 89.69 million.
Summary:
Corn traded lower with traders positioning themselves ahead of tomorrow’s USDA data reports. Temperatures are expected to heat up over the next couple of days followed by more rain events and then cooler temps next week. Weather remains favorable for Brazil’s 2nd crop corn harvest, and it could be a good harvest weekend for them. Soybeans also closed lower ahead of tomorrow’s USD crop data reports. Wheat has struggled this week barely holding support and appears to be on the verge of breaking the March 29 low. The Spring Wheat crop is looking strong in most places and the Winter Wheat harvest is doing well in Hard Red Wheat regions of the country. The early Soft Red Wheat harvest reports in Kentucky are below expectations. Weekly export sales were better than they have been for the past few weeks, but shipments are 50% below that of last year.
