Tag Archives: soybeans

Summary

We start a shortened trading week with overnight grains grains mostly lower. Chicago wheat was the lone grain in the green.

Chicago wheat is being helped by Russian wheat exports continuing to rise in prices. Egypt did buy a large part of their last tender from Russia, but that could change in the future with Russia starting to curb it’s exports.

Pakistan is also in the global wheat market as it just approved to import 300,000 MT of wheat. Currently there is a flour supply shortage that caused a mild panic with increased bread prices last week.

The latest USDA Grain Export Inspections looked good for soybeans.

Soybeans 1,199,136 tons vs 1,149,404 tons last week

Corn  345,859 tons vs 483, 559 tons last week

Wheat 435,129 tons vs 560,976 tons last week

There is market rumor that China bought 2.5 MMT of corn, but so far there has been no USDA confirmation of the sale.

The Association of American Railroads said grain railcar volume last week was down 25.9% from a year ago with year to date volume down 16.1%. This is bearish for traders who are wanting to see more grain on the move to ports with the Phase One Trade Deal signed.

The grain bulls are starting to be supported by funds. Index funds bought a combined 66,047 contracts of corn, soybeans, and Chicago wheat over the last five weeks.

Packers continue to limit Saturday slaughter in cattle and it seems to be helping beef prices. Packers were also able to buy cattle steady to $1cwt lower last week. Most of the live trade last week was at a $124 fully steady with the previous week. Dressed trade was mostly at a $199 $1 lower than the previous week’s weighted average.

The cold snap hitting the northern part of the US could limit cattle movement and possibly limit feed performance. This could  drop weights over the next couple weeks.

Cash hogs are being called steady to a $1 higher. This has pre-open bid asks looking positive for lean hog futures.

China’s Lunar New Year starts this Saturday January 25th. The holiday features a lot of pork and could mean China will be in for big pork exports to replenish supplies after the holiday.

Cattle on Feed Report will be out Friday.

Pre Report Estimates

Estimate                 Range of Estimate

On Feed Jan 1                        102.2                      101.6-102.5

Placed in December           103.2                      100.5-105.3

Marketed in Dec                   105.2                       103.9-105.8

Beef Cutout at Midday Friday

Choice up 1.09 213.99

Select up 1.98 213.45

Choice Select Spread 0.54

Loads 60

Pork Cutout at Midday Friday

Carcass  dn 2.82 72.63

Bellies dn 10.16 92.49

Loads 234

 

Cattle Slaughter

122,000 hd today 120,000 hd wk ago 116,931 hd yr ago

Hog Slaughter

498,000 hd today 495,000 hd wk ago 473,381 hd yr ago

Grain Overnight Trade

  • Corn dn 1 3/4 – 3
  • Soybeans dn 4 1/4 – 7 1/4
  • Chicago Wheat up 1 1/4 – 2 1/2
  • Kansas City Wheat up dn 1 1/4 – 2 3/4

Livestock Open

  • Live Cattle dn 0.10 – 0.50
  • Feeder Cattle dn 0.15 – 0.55
  • Lean Hogs dn 0.72 – 1.70
  • Class III Milk up 0.01 – 0.11

 Pre-opening Market Broker  Commentary

Mark Gold, Top Third Ag Marketing, discusses overnight grains and what the trade may see today.

Jerry Stowell, Country Futures, discusses factors influencing the livestock trade today.


Midday Market Broker Commentary

Mike Zuzolo, Global Commodity Analytics, shares his thoughts on the midday trade factors.

Closing Market Broker Commentary

Closing commentary with John Payne, Daniels Ag Marketing, and Jack Fenske, York Commodities.

China’s purchases of U.S. pork and soybeans rebounded in November and December, ahead of today’s (Wednesday’s) signing of the phase one trade agreement between the two nations.

Reuters reports that Chinese agricultural imports from the United States were at 14.1 billion yuan, or $2 billion, in December. A Chinese customs spokesperson says the increase in imports of soybeans and pork comes as “positive U.S.-China trade sentiment has boosted companies’ confidence in December.” African swine fever has severely reduced China’s hog herd, the world’s largest producer and consumer of pork.

China has since increased exports of U.S. pork to record levels. Pork exports to China and Hong Kong were up 49 percent in value at $1.18 billion from January to November 2019. Consumer prices for pork in China nearly doubled since the initial outbreak of African swine fever, and efforts to rebuild the hog herd in China are slow going. China has also released frozen pork from state-owned reserves to help ease the situation for consumers.

President Donald Trump says he’ll sign the first phase of a trade deal with China at the White House on Jan. 15.

Trump says Tuesday on Twitter that he’ll then travel to Beijing at a later date for talks aimed at reaching agreement on outstanding sticking points in the U.S.-China trade relationship.

In the deal reached earlier in December, the U.S. agreed to reduce tariffs on China and China agreed to buy larger quantities of U.S. farm products, such as soybeans. Remaining sticking points would be worked out during a second round of trade talks.

What do U.S. soybean farmers and global aquaculture have in common? Quite a bit, actually, especially in helping to make fish farming more sustainable and scalable.

Working towards Sustainability in Global Fish Farming

For nearly 30 years, the U.S. Soybean Export Council’s (USSEC) aquaculture program, funded by the soybean checkoff, has provided critical training and technical knowledge for global aquaculture — ranging from small family fish farms in Asia to large international operations that provide fish for your local supermarket and large global retailers like Costco and Walmart.

Beginning in the 1990s, the program worked to transition Chinese fish farms from manure-based feed to formulated pellet feed, and over the years has provided training to improve feed and farming methods that improve food safety and sustainability, while lessening environmental impact.

Four Areas of Focus Help to Shape Sustainable Aquaculture

In aquaculture, USSEC focuses on four areas: feed, technology advancements, aquaculture investment, and sustainability. USSEC works to optimize and demonstrate the value of U.S. Soy through all of these efforts. Let’s take a look at each.

Feed: USSEC’s technical experts work with feed mills and farmers to develop feed formulations, feed demonstrations, and best feed practices. USSEC’s partnership with business and academia on the International Aquaculture Feed Formulation Database provides valuable training for feed formulators. And aquafeed formulation research made possible by soy industry support is archived for public use.

Technology Advancements:  Hatchery improvements, genetic/breeding advancements, and the In-pond Raceway System (IPRS) technology transfer ensure better fish health and safety, water conservation, less environmental impact and higher yields. USSEC holds educational field trips and seminars to share best practices of successful farms.

Aquaculture Investment:  U.S. Soy’s renowned Aquaculture Investment Workshops promote investment in aquaculture infrastructure in Latin America so that industry can expand to meet global demand.

Sustainability:  All of the U.S. Soy aquaculture program’s initiatives are based on making global aquaculture more sustainable. The U.S. Soy Sustainability Assurance Protocol (SSAP) allows for soy feed ingredients to be certified sustainable, and USSEC works closely with aquaculture sustainability certification programs such as BAP and ASC so that the SSAP is accepted as a standard for sustainable soy.

U.S. Soy: A Sustainable Alternative

High quality U.S. soybeans help to increase the affordability and sustainability of the world’s supply of healthy, farm-raised seafood and can replace much of the fishmeal in feeds for many farmed species, thus reducing the pressure on wild fish resources.