Headlines:

  • Blockchain Technology Will Improve Farmers’ Ability to Market and Sell Crops
    Whether your crop is headed for human consumption or slated for animal feed, the journey it takes once that commodity leaves your farm is an imperfect and complex one. It’s also a trek that consumers like Kristen Adams are interested in. “It’s impossible to tell how food is grown, processed, and distributed before it reaches the point of sale where I casually put it in my shopping cart,” says the Wisconsin mother of two. “I want to know where that food comes from. I want to know how it is produced. I want more information on the ingredients.” A recent survey by Trace One found that while 91% of consumers think it is important to know where their food comes from, only 12% wholeheartedly trust the safety of the food they consume, and only 10% trust the quality.  “It seems like there is a story every week about recalls and serious illnesses or even deaths from contaminated food. Some of those recalls are from well-known brands I trust. It is scary,” says Adams. “Unless we strap a GoPro on our food, we do not know its real journey. Food biographies would be a comforting wave of the future.” Blockchain affords the myriad stakeholders along the supply chain the opportunity to chronicle that back story. “Everyone must be accountable for what they are delivering,” says CoBank’s Tanner Ehmke. “Blockchain is going to help create transparency across our growing global food network. For consumers, this technology adds another level of trust in the products they are buying, and they are willing to pay a premium for it.”
  • Oil markets heading into unprecedented uncertainty: IEA’s Birol
    Oil markets are entering an unprecedented period of uncertainty due to geopolitical instability and a fragile global economy, the head of the International Energy Agency said on Tuesday. Concerned about an emerging production overhang similar to the one that led to a price slump in 2014, the Organization of the Petroleum Exporting Countries is pushing for a supply cut of 1 million to 1.4 million barrels per day (bpd). The United States restored sanctions targeting Iran’s oil sector in early November, cutting the country’s crude exports by close to 1 million bpd from a summer peak. Although Washington has pledged eventually to halt all of Iran’s global sales of crude oil, for now it has said eight buyers – China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey – can continue imports without penalty. “The U.S. decision on the Iranian sanction waivers took some of the players in the market by surprise,” the IEA’s Fatih Birol said in an interview on the sidelines of a conference organized by Norwegian energy company Equinor. “As a result, what we see today is that markets are well supplied and the (oil) price went down by $20,” Birol said.

Summary:

The CME group is working on generating a new Brazilian soybean contract in the midst of the ongoing US/China trade war. This could change the scope of contracting soybeans in the future if this new contract approved. Corn futures fell slightly on reports of export sale cancellations. USDA reports cancelled exports sales of 200,588 mt of corn to unknown locations for 2018-19. Corn progress was reported at 90% harvested, down 1% from estimates and 3% below the 5-year moving average. The soybean market on optimism of trade renegotiation with China. The G-20 Summit begins in 10 days in Argentina and runs through December 1st. Reports indicated that President Trump and President Xi will have constructive conversations during this meeting that should move the trade war a step in the right direction. The US sold 123,567 mt of soybeans to unknown destinations for the 2018-19 marketing year. Weekly soybean progress came in at 91% harvested, lagging 5% behind last year and the 5-year average. The winter wheat planting came in line with expectations at 93% complete but still trailed the 5-year average of 97% planted. Winter wheat condition jumped 2 pts to 56% good/excellent rating.