FI Morning Grain Comments 08/20/20

Aug 20, 2020







PDF attached

 

Morning. 

USD
is higher by 19 points and WTI crude lower by 66 cents. No USDA 24-hour sales were posted.  Pro Farmer crop tour early results are showing glowing corn yields and high pod counts for areas outside of storm ravaged Iowa.  Weather models are showing a good warmup
for the US Midwest late this weekend into early next week, with precipitation limited over the next week.  Malaysia is on holiday and China vegetable oil prices were lower.  Offshore values are favoring CBOT soybean meal over soybean oil. 
China
sold just over 4 million tons of corn from reserves at an average price of 1,959 yuan per ton.  Japan bought 117,063 tons of food wheat.  China sold another 4 million tons of corn out of reserves. 

 

 

 

Weather
and Crop Progress

 

 

7-day Total Precipitation (millimeters)

 

Bloomberg
Ag Calendar

THURSDAY,
August 20:

  • USDA
    weekly crop net-export sales for corn, soybeans, wheat, cotton, pork, beef, 8:30am
  • Brazil
    Conab sugar, cane and ethanol production
  • Port
    of Rouen data on French grain exports
  • China
    International Cereals and Oils Industry Summit
  • USDA
    red meat production, 3pm
  • HOLIDAY:
    Malaysia
  • EARNINGS:
    Cherkizovo

FRIDAY,
August 21:

  • 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
  • China
    International Cereals and Oils Industry Summit, day 2
  • Malaysia
    palm oil export data for August 1-20
  • U.S.
    cattle on feed, 3pm

Source:
Bloomberg and FI

 

 

 

 

 

USDA
export sales
showed net reductions for current crop-year for soybean oil and soybeans.  New-crop soybeans were excellent at 2.57 million tons but new-crop soybean oil were zero.  Soybean meal sales were light.  Corn export sales were thin for old crop and new-crop were
within expectations.  All-wheat sales were within expectations.  Pork sales were good at 20,600 tons.  Sorghum sales were 122,000 tons for new-crop.  Overall, the USDA export sales report might weigh on soybean oil futures prices and

 

 

 

Macros

US
Philly Fed Business Outlook Aug: 17.2 (est 20.8; prev 24.1)

US
Initial Jobless Claims Aug 15: 1106K (est 920K; prevR 971K; prev 963K)

US
Continuing Claims Aug 8: 14844K (est 15000K; prevR 15480K; prev 15486K)

 

 

Corn.