Global Ag News Headlines May 7

by ADMIS Research Team

Overnight trade has SRW up roughly 7 cents, HRW up 7; HRS Wheat up 7, Corn is up 3 cents; Soybeans up 6, Soymeal up $1.50, and Soyoil up 30 points.

Chinese Ag futures (Sep) settled up 25 yuan in Soybeans, down 8 in Corn, up 8 in Soymeal, up 14 in Soyoil, and down 14 in Palm Oil.

U.S. Weather Forecast

Freezes will occur in portions of the Corn Belt Friday through May 12 before conditions notably warm up

South America Weather Forecast

Last night’s GFS model run suggested a meaningful rain event in Mato Grosso, Mato Grosso do Sul, Sao Paulo, and Parana, Brazil May 11 – 15

The player sheet had funds net sellers of 2,000 contracts of SRW Wheat; net sold 9,000 Corn; were net sellers of 4,000 Soybeans; net sold 1,000 Soymeal, and; net sold 3,000 lots of Soyoil.

We estimate Managed Money net long 12,000 contracts of SRW Wheat; net short 161,000 Corn; net long 4,000 Soybeans; net short 8,000 lots of Soymeal, and; net short 11,000 Soyoil.

Preliminary Open Interest saw SRW Wheat futures down roughly 1,200 contracts; HRW Wheat down 2,700; Corn down 2,600; Soybeans up 9,400 contracts; Soymeal up 1,200 lots, and; Soyoil up 2,600.

Deliveries were 33 Soymeal; 204 Soyoil; ZERO Rice; ZERO Corn; ZERO HRW Wheat; ZERO Oats; ZERO Soybeans; ZERO SRW, and; 2 HRS.

There were changes in registrations (Corn down 80; Soyoil down 55; Rice down 59)—Registrations total 11 contracts for SRW Wheat; ZERO Oats; Corn 7; Soybeans 1; Soyoil 3,495 lots; Soymeal 547; Rice 245; HRW Wheat 10, and; HRS Wheat 490 contracts.

TODAY—WEEKLY EXPORT SALES—CANADIAN CROP PLANTING INTENTIONS— 

Tender Activity—S. Korea seeks 136,000t optional-origin corn; bought 69,000t South American corn—Egypt seeks 60,000t optional-origin soyoil–

U.S. ethanol production for the week ended May 1st averaged 598,000 barrels per day (up 11.4% versus a week ago, down 42.3% versus a year ago); stocks totaled 25.6 mil barrels (down 2.8% a week ago, up 13.9% versus last year); corn use for the week was 61.0 mil bu (52.9 mil last week) and versus the 97.5 mil bu needed to meet USDA projections.

World food prices fell for a third consecutive month in April, hit by the economic and logistical impact of the coronavirus pandemic, the United Nations food agency said

—The Food and Agriculture Organization (FAO) food price index averaged 165.5 points last month, down 3.4% on March

—Prices of coarse grains, including maize, fell 10%, hit by reduced demand for both animal feed and biofuel production

—FAO held its forecast for cereal production largely steady at 2.720 billion tons in 2019, but reduced its forecast for cereal utilization in 2019/20 by 24.7 million tons, mainly because of the impact of the coronavirus on the economy

—FAO also unveiled its first forecasts for global wheat supply and demand in the 2020/21 marketing season, predicting world production at 762.6 million tons, broadly in line with the 2019 level

—Global wheat utilization in 2020/21 was expected to be stable, with anticipated increases in food consumption outweighing reductions in feed and industrial uses.

U.S. corn ethanol machinery maker Lucas E3 on Wednesday announced an agreement with Brazilian company Maracaja Bioenergia to build a corn-based ethanol plant in the Mato Grosso state, optimistic that fuel demand will improve by the time construction is finished

—Lucas E3 said the Brazilian company will invest 500 million reais ($87.53 million) to build the plant in the roadside of BR-163 highway, the main export corridor for soybeans and corn produced in Mato Grosso going north to river ports in Para state.

Frosty temperatures expected in the U.S. Midwest on Saturday could threaten newly planted corn crops and developing soft red winter wheat, meteorologists said on Wednesday.

China Jan-April soybean imports at 24.51 million tonnes – customs

China April soybean imports at 6.72 million tonnes -Reuters calculation

China’s April soybean imports slide 12% amid hangover from Brazil shipment delays

  • Large May soy imports expected on improved weather in Brazil
  • More U.S. beans to come this year as Beijing fulfils trade deal
  • Demand curbed after African swine fever slashed herd

China’s April soybean imports fell 12% from a year earlier, customs data showed on Thursday, with analysts citing the impact of bad weather delaying cargoes from top supplier Brazil

—China brought in 6.716 million tons of the oilseed in April, down from 7.64 million tons a year ago

—Rains in late February held back the harvest and exports in Brazil, leading to record-low levels of soybeans and soymeal in China

China’s meat imports in the first four months of 2020 rose 82% year-on-year to 3.03 million tonnes, according to the General Administration of Customs, as it sought proteins including pork

—April meat imports were 862,000 tons

Pork prices in China continued to edge down last week as supply increased and demand softened

—From April 27 to 30, the average pork price index in 16 provincial-level regions tracked by the Ministry of Agriculture and Rural Affairs came in at 42.52 yuan (6 U.S. dollars) per kg, down 1.2 percent week on week

Marubeni Corp said on it expects a net profit of 100 billion yen ($942 million) in the financial year through March, a turnaround from a loss of 197.5 billion yen posted this year due to the coronavirus crisis and a slump in oil prices; the annual forecast is based on an assumption that the pandemic will peak out during the April-September period, while it might take some time for the global economy to recover.

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Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.