AgriVisor Morning MarketWatch

Tuesday, September 10, 2019
Corn, soybeans, and wheat are on the positive side in the overnight session as we see a light recovery take place. Funds are holding sizable short positions ahead of Thursday’s WASDE report, so to see some short covering is expected. Average guesses ahead of the data release are not as low as some analysts had thought they might be which is limiting buying interest. Additional strength is coming to the market from the crop condition report that showed an unexpected decline in the corn rating. The US corn crop is now rated 55% Good to Excellent, a 3% decline on the week. Demand seems to be perking up for our commodities which is also giving the market some much needed support. Advances are being held in check by near perfect weather to finish out the growing season, as conditions for the next two weeks are forecast to be favorable for final development. 

* Bio-Diesel Package details less than hoped for
* 5% more ethanol blending, 1 bil gal more bio-fuel usage
* Bio Fuel stocks growing faster than usage
* WASDE estimates not far from August numbers
* Corn production at 13.6 bbu; Aug was 13.9 bbu
* Soybean production at 3.6 bbu, was 3.68 bbu in Aug
* Chinese imports of all US goods -22% in August

* Mexico buying large amounts
* Demand needs to build
* Competition from cheap wheat
* 55% G/E; -3% on the week
* 11% mature, 24% is average

* Brazil exports to continue
* Chinese demand slowing
* Little change to production
* 55% G/E, unchanged on the week
* 92% set pods, normal is 99%

* US needs to remain competitive
* Global market trends lower
* Low falling numbers being reported
* Kansas protein reported at 11.5%; 12.3% last year
* Kansas by weight at 61#

* China to subsidize pork farmers
* $700,000.00 to new farms
* Will cover 20% of building expenses
* ASF found in Philippines
* Supply outpacing demand