Global crop losses in 2020 relative to initial May expectations exist at the upper end of history when measured in tonnage. Combined global coarse grain and oilseed production in the USDA’s November WASDE was pegged at 2,045 MMTs, down 42 MMTs from the USDA’s estimate in May – and down 46 MMTs from USDA’s peak…
Crop conditions across key soybean production regions in Brazil continue to deteriorate. Cumulative rainfall across the Midwestern region has averaged 49% of normal over the last 90 days. Today’s forecast doesn’t indicate a change for the hot/dry weather pattern into early December. Without a doubt, current conditions have diminished crop potential. However, the latest crop…
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…
