FI Morning Grain Comments 08/05/20

Aug 5, 2020







PDF attached

 

Prices
are bouncing off steep losses posted on Tuesday, with exception of soybean oil amid lower Asian vegoil prices and a reversal in product spreading. 

 

  • USDA
    announced 192,000 tons of soybeans for 2020-21 delivery to China. 
  • The
    large declines in CBOT agriculture prices on Tuesday attracted global corn and meal import interest.  SK bought a combined 132,000 tons of corn overnight.  NOFI seeks rapeseed meal.  However, KOCOPIA passed on corn overnight. Japan is in for 3,000 tons of
    livestock wheat. 
  • Corn
    OI was up 24,771 contracts on Tuesday, while CBOT soybean OI was up 9,825. 
  • There
    were 219 SBM deliveries and 142 soybean oil.  CBOT soybean oil registrations increased 21 with 79 coming out of Bunge Dec., IL and 100 registered at Volga, SD. 
  • Malaysian
    palm oil was down 51 MYR and cash shed $5.00/ton.  China soybeans were down 2%, and both SBO & SBM off 1.1%. 
  • ANEC
    sees Brazil’s corn and soybean exports for August increasing 33 percent each, from last year.  
  • France
    lowered their wheat crop to 29.7 million tons from 31.31 million tons last month, now down 25 percent from last year. 
  • The
    aftermath of the blast in Lebanon leaves that country with less than a month of grain consumption. 

 

 

 

Weather
and Crop Progress

 

 

7
Day Precipitation Outlook

 

Bloomberg
Ag Calendar

WEDNESDAY,
August 5:

  • EIA
    U.S. weekly ethanol inventories, production, 10:30am
  • China’s
    CNGOIC to release supply-demand reports on corn, soybeans
  • French
    Agriculture ministry’s 2020 grain estimates
  • Malaysia’s
    palm oil export data for August 1-5
  • New
    Zealand Commodity Price

THURSDAY,
August 6:

  • FAO
    World Food Price Index
  • USDA
    weekly crop net-export sales for corn, soybeans, wheat, cotton, pork, beef, 8:30am
  • Port
    of Rouen data on French grain exports

FRIDAY,
August 7:

  • China’s
    foreign trade data for July, including imports of soybeans and meat
  • ICE
    Futures Europe weekly commitments of traders report, 1:30pm (6:30pm London)
  • CFTC
    commitments of traders weekly report on positions for various U.S. futures and options, 3:30pm
  • FranceAgriMer
    weekly update on crop conditions

Source:
Bloomberg and FI

 

 

 

 

Macros

·        
The U.S. and China have agreed to high-level talks on Aug. 15 to assess Beijing’s compliance with the bilateral trade agreement signed early this year

·        
US Trade Balance (USD) Jun: -50.7B (est -50.2B; prevR -54.8B; prev -54.6B)

·        
US ADP Employment Change Jul: 167K (est 1200K; prevR 4314K; prev 2369K)

 

 

Corn.