Widespread dryness across South America has rallied world grain/oilseed markets since October. Historically unusual is the lack of rainfall across the tropical areas of Northern Brazil – Mato Grosso and Mato Grosso do Sul. The latitude of this region along with Mato Grosso’s proximity to the rainforest means that near-daily showers are expected. However, this…
The November Cattle on Feed report leaned modestly bullish relative to expectations. The October placement rate was below expectations and the November 1st feedlot inventory was just 101% of last year (versus expectations of 102% – a difference of 55,000 head). CME cattle futures have been in a downtrend since mid-November and this month’s on-feed…
Global oilseed markets have risen sharply amid the need for the US to cap total US soybean consumption at 4,600 Mil Bu. This domestic crush must be slowed and exports must not exceed 2,325 Mil Bu. This will be a tall order as export sales commitments are currently up 117% from last year. The USDA…
The average hog production margin across 12 provinces soared in the last half of 2019 as the Chinese cash hog prices rallied. Both the cash hog market and estimated margins peaked in late 2019 and have since held in a broad range (at record levels) since. The cash hog market peaked at 42 CNY/Kg or…
Early planted corn in Argentina and Southern Brazil will soon enter critical growing stages with depleted soil moisture. The graphic below shows historical Oct-Nov precip in Cordoba, Argentina and Rio Grande do Sul in Southern Brazil. Both regions are major producers of corn. Cordoba is the largest producing province in Argentina while RGDS accounts for…
