FI Morning Grain Comments 08/27/20

PDF attached

 

Morning. 

 

The
category 4 hurricane was downgraded to a cat 2 but devastation occurred overnight after landfall: Maps…

https://s.w-x.co/staticmaps/wu/wu/satir1200_cur/usase/animate.png

https://www.nhc.noaa.gov/storm_graphics/AT13/refresh/AL132020_5day_cone_no_line_and_wind+png/093605_5day_cone_no_line_and_wind.png

 

USDA
reported sales of 747,000 tons of corn to China and 140,000 tons to unknow, both for new-crop.  There were no major surprises in the USDA export sales report.  US agricultures futures are higher on follow through buying related to US, EU, and Black Sea crop
concerns.  South Korea bought feed wheat and soybean meal overnight.  Taiwan bought US wheat and Japan bought food wheat.  Brazil plans to relax on some agriculture import tariffs over the short term.  China buying of US soybeans slowed on Wednesday with at
least one cargo trading out of the Gulf.  Argentina soybean inspectors planned a 36-hour strike starting Friday over wages.  For the first time this season, China corn reserve sales failed to reach 100 percent.  China sold 89 percent of the total offered at
auction, or 3.547 million tons out of 3.989 million offered. 

 

 

6-10-day
precipitation

 

 

Weather
and Crop Progress

 

 

 

Source:
World Weather Inc. 

 

Bloomberg
Ag Calendar

THURSDAY,
August 27:

• USDA
  weekly crop net-export sales for corn, soybeans, wheat, cotton, pork, beef, 8:30am
• International
  Grains Council monthly report
• Port
  of Rouen data on French grain exports
• EARNINGS:
  Sime Darby Plantation

FRIDAY,
August 28:

• 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
• U.S.
  agricultural prices paid, received, 3pm

Source:
Bloomberg and FI

 

 

 

 

 

USDA
export sales.

No
major surprises in USDA’s export sales report.  Meal and SBO sales remain on the light side but shipments were ok.  All-wheat exceeded expectations and corn and soybean new-crop sales were within expectations.  Pork sales were robust again at 39,400 tons with
China and Mexico taking about two-thirds of the amount. 

 

 

 

 

Macros

US
GDP Annualized (Q/Q) Q2 S: -31.7% (est -32.5%; prev -32.9%)

US
GDP Price Index Q2 S: -2.0% (est -1.8%; prev -1.8%)

US
Core PCE (Q/Q) Q2 S: -1.0% (est -1.1%; prev -1.1%)

US
Initial Jobless Claims Aug 22: 1006K (est 1000K; prevR 1104K; prev 1106K)

US
Continuing Claims Aug 15: 14535K (est 14400K; prevR 14758K; prev 14844K)

US
Personal Consumption Q2 S: -34.1% (est -34.2%; prev -34.6%)

 

 

Corn.