Headlines:
- Digital Ag Is Helping to Drive the Proposed Bayer-Monsanto Deal
If the Bayer purchase of Monsanto becomes reality, it’s another indicator that digital agriculture is a game changer similar to what transgenic crops were 20 years ago. Digital agriculture’s rise in farming is akin to Uber’s acceleration in transportation, says Mark Gulley, principal of New York City-based chemicals consultancy Gulley & Associates LLC. Businesses that don’t see these trends coming – such as taxi services in the case of Uber – quickly get rolled. “They will look up and say, ‘What happened?’ Well, it happened fast,” says Gulley. “When you have AG biotech, autosteer, and now digital AG, those are big things that have long-term importance.”
- ‘Worse’ quality, firmer rouble to cap Russia’s wheat export surge
Russia’s wheat exports will set a record this season, but not by the margin many investors are expected, US officials said, flagging setbacks from a quality downturn and tough international competition. The US Department of Agriculture’s Moscow bureau backed estimates of a bumper Russian wheat harvest this year, hiking its production estimate by 7m tonnes to an all-time high 72m tonnes – in line with the USDA’s official figure, and a forecast by consultancy Ikar. The estimate was above those from some other commentators, such as Russia’s own farm ministry and the International Grains Council, both of which peg the crop at 70m tonnes.
Summary:
Exports sales activity that suggests a potential increase in demand was the anchor for positive price activity for Soybean futures today. USDA released export sales of 264k metric tons of Soybean for 2016-2017 marketing year delivery to unknown. Additionally, 220k metric tons of Beans for the same marketing year to China was also reported. The combination of perceived demand and some rain in the forecast for the Midwest is being touted as a possible rational for today’s big move. An article published today discussed some of the concerns surrounding too much rain causing mold and fungus issues for Beans. The move today in Beans was so strong (up 17 cents or 1.77%) that it pulled Corn and Wheat up with it as well.
Keep in mind that we warned you weeks ago that time cycle suggested that a low of significance was due at the end of August or the beginning of September. It is only fitting that these recent news events would occur in conjunction with our time factors. This is not a good time to have the soil wet with some Corn and Beans very close to being ready to cut. The USDA reported that the Spring Wheat crop was 91% completed. That was 1% behind last year’s progress at this time and 17% higher than the 5 year average.
