Agriculture News
Commodity markets faced pressure overnight on renewed macroeconomic concerns amid new Covid outbreaks in China with grain and soy futures pressured by the broad-based selling.
Both the present situation index and the expectations index surprisingly rose this month.
HRW rating is 8.5 points below average, while the SRW rating is 4.4 points above normal.
This week we welcome special guest David Wasserman, Senior Editor, U.S. House of Representatives for The Cook Political Report. David shares his perspective on potential outcomes of national elections.
Soybean inspections slowed from the previous week but were about as expected.
Soybeans are leading gains in the grain markets with livestock futures also higher to start the week.
December HRW and December HRS futures posted new contract highs overnight.
USDA’s Cold Storage Report showed beef stocks increased a little more than is typical during September, while the build in pork stocks was a little shy of normal.
Report should be supportive for futures, especially deferred live cattle.
Access this week’s newsletter here.
Wheat futures followed the European market higher overnight, with December HRS wheat scoring a new contract high.
Monthly survey finds bankers turning pessimistic for 2022.
The U.S. Drought Monitor as of Oct. 19 showed some drought improvement in areas of the Southern Plains, but there were areas in West Texas that saw a one-category degradation in drought conditions during the week.
Above-normal temps are expected across the entire Southern and Central Plains for November through January, with below-normal precip over much of Oklahoma and all of Texas.
China was the lead buyer of U.S. soybeans on the week at nearly 1.9 MMT.
Soybean led the price pullback overnight after recent, strong gains.
Corn and soybean basis both slipped as harvest continues to progress faster than normal and yields are big.
The report is expected to show larger placements again for September.
Agriculture conditions were mixed and energy markets were little changed, on balance.