Jan 9 Morning Ag Commentary

by Steve Freed,

Grains are higher. SH is up 4 cents and near 9.52. CH is up 2 cents and near 3.86. WH is up 3 cents and near 5.56. De-escalation of tension in Middle East may be helping grains. US Dollar is higher. US stocks are higher. Crude is higher. Gold is lower.

USDA delayed weekly export sales report until Friday due to a winter storm in Washington. Weekly US wheat sales are est near 200-550 mt, corn 350-700 mt and soybeans 400-800 mt. China COFCO continues to cancel soybean delivery receipts.

The South American weather forecast for Brazil doesn’t have much change with moderate rainfall through most of the region over the next 6 to 10 day period. The Argentine weather forecast has rains in the north over the next few days, turning dry for the weekend, and then in the 10 period rains to return in most areas with a strong front.

Chinese President Xi Jinping’s chief trade negotiator will travel to Washington early next week to sign a phase-one trade deal with the U.S., China’s Commerce Ministry said. The first official confirmation by Beijing on the signing of an agreement that could help ease bilateral tensions.

China’s food prices jumped 17.4% in December over a year earlier, driven by surging pork prices despite official efforts to ease shortages caused by a disease outbreak. Overall consumer prices rose 4.5%, well above the official target of 3%. That matched November’s inflation rate, the highest in seven years.

China’s commerce ministry said that Beijing will increase pork imports and release more pork from state reserves to ensure stable supply and prices ahead of the Lunar New Year holidays.

Deere & Co. on Wednesday said it will cut costs and ramp up investment in data-driven agriculture technology and its services business to make itself more profitable. In a pitch to investors, Chief Executive Officer John May said the measures are expected to boost operating profit margin to 15% by 2022 from 12.5% projected for this year. The steps, outlined by the company’s new leadership, are part of a broader trend in the U.S. manufacturing sector which is facing its deepest slump in more than a decade.

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2020-01-09T14:48:32+00:00 January 9th, 2020|