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…
The Chicago Federal Reserve’s quarterly Ag Letter released just yesterday showed the general optimism across the industry. The reports from late 2020 reflected a gasp of relief and the first report for 2021 reflected heightened optimism. The push to multi-year highs in row crop prices allowed farmers to pay down a tremendous amount of debt.…
The USDA was expected to continue adjusting Brazilian corn production downwards into August. In fact, the USDA’s downward adjustment of 7 MMTs is sizable for the May WASDE! A Brazilian corn crop of 102 MMTs is much too high, but WASDE/CONAB will march their crop estimate lower as yield data becomes available. Moisture deficits across…
