October 19, 2018 | Global Ag News Highlights
USDA Agency Reports
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Grains are mixed. SX is up 1 cent and near 8.65. CZ is unchanged and near 3.70. WZ is down 1 cent and near 5.11. US Dollar is mixed to lower. Crude is higher. US stocks are higher.
For the week, Winter Wheat prices are down roughly 6 cents for SRW, down 11 in the HRW, and down 11 for HRS; Corn is down 3; Soybeans down 2 cents; Soymeal up $1.00, and; Soyoil down 30 points.
For the week ended October 11th, U.S. All Wheat sales are running 18% behind a year ago, shipments 25% behind with the USDA forecasting a 14% increase on the year. U.S. Corn sales are running 41% ahead of a year ago, shipments up 80% with the USDA forecasting a 2% increase on the year. U.S. Soybean sales are running 21% behind a year ago, shipments 28% behind with the USDA forecasting a 3% decline on the year. Soymeal sales 12% ahead of a year ago, shipments 52% ahead with a 9% decline forecasted.
The U.S. Midwest weather forecast has light rains working through most of the region today; the weekend and most of next week is dry; the following weekend, rains look to be possible in the west. Temps continue to be running below average for the near to mid-term. NOAA suggested US Midwest 3 month forecast calls for mild weather.
Brazil weather has a soaking rain pattern in most areas over the near to mid-term with coverage around 85%. Argentine weather looks for moderate rainfall late in the weekend and early next week in most areas with only Buenos Aires and Entre Rios missing the bulk of the rains.
Argentina's transportation union announced late on Wednesday night that it would go on strike next week to call for an increase in hauling rates, in a move that could disrupt the nation's grain shipments; more than 80 percent of the country's agriculture production is shipped by truck to ports; as a result, the strike could also impact some port activity, although it is currently the low season for grains.
China has ample supplies of soybeans and significant price fluctuations are unlikely, a senior agriculture ministry official said; domestic soybean planting acreage has increased and China is set for a bumper harvest, supported by government subsidies and crop rotation policies; over January to August, China's soybean imports from Brazil accounted for nearly 70 percent of its overall purchases; in 2017, 58 percent of China's soy imports came from Brazil over the same period, according to customs data.
Funds sold 11,000 soybeans, 4,000 soymeal, 4,000 soyoil, 10,000 corn and 3,000 wheat on Thursday. Funds are estimated to be net short 34,000 soybeans, 38,000 soyoil, long 42,000 soymeal, short 6,000 corn and short 24,000 wheat.
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