The May Cattle on Feed report is slightly bearish for CME futures. The May placement rate was larger than expected, and the May 1st feedlot inventory was 105% of a year ago versus the average estimate of 104%. The difference between expected on feed and actual was 99,000 head or less than 1 day’s kill…
The 2021 Kansas’s Wheat Crop Quality Tour consistently found record yield potential. The tour’s measurements suggests that NASS’s May HRW production is too by low by a sizable margin. The tour pegged the Kansas HRW yield at a record large 58.1 BPA vs. 44.5 last year and vs. the previous record set in 2016 of…
On Tuesday, Argentina announced that it would implement a 30-day moratorium on beef exports. The Argentine government relies heavily on revenues collected from export taxes agriculture exports. The export tax for beef was at 9%. So halting beef exports will take a bite out of the federal revenue stream. But the move will help cool…
CBT price determination in the next 3.5 months hinges on only 3 things: old crop cash basis, Northern Hemisphere weather and changes made by NASS to the US acreage matrix. NASS’s June acreage report is still 6 weeks away, but amid historic tightness in old crop balance sheets across the world, revisions to US seeded…
The NOPA crush data for April was disappointing. NOPA reported an April soybean crush of 160 Mil Bu, 9 Mil Bu under expectations, and 12 Mil Bu less than a year ago. Crush rates fell in every NOPA reporting region. Compared to a year ago, the largest decline of 3.4 Mil Bu was realized in…
