China Feed Demand Grows
- Exporters reported sales of 195,000 tonnes of corn for delivery to China and 130,000 tonnes of corn for delivery to unknown destinations.
- In the first half of this year, the US exported 400,000 tonnes of corn to China, up from the nearly 200,000 tonnes over the same period last year.
- China's pig herd grew by 13.1% in July from the same month last year.
- The sow herd increased by 20.3%, in an effort to rebuild a herd that was estimated down 40% due to the African swine fever.
- Poultry producers are expected to produce a record 14.85 million tonnes of chicken meat in 2020, up from 13.75 million tonnes last year.
FBN’s Take On What It Means: China's hog production appears to be recovering more rapidly than expected, while chicken producers are also pushing ahead with aggressive expansion plans. The significant expansion is increasing demand for corn and soybeans. China’s domestic corn prices have risen to 5-year highs despite the government auctioning reserves, which will likely lead to further imports from the US and help to support prices.
Crop Tour Continues
- The ProFarmer crop tour finished Day 2 after traveling through Nebraska and Indiana.
- The tour forecast Nebraska’s corn yield at 175.1 bushels per acre, up from 172.5 last year and above the 3-year average of 172.4.
- USDA projected Nebraska’s yield at 191 bushels per acre in its August report.
- In Indiana, Pro Farmer forecast the corn yield at 179.8 bushels per acre compared with 161.5 last year and a 3-year average of 171.7.
- The current USDA projection for Indiana is 188 bushels per acre.
- Nebraska soybean pod counts were 1,298 pods in a 3’x3’ plot compared with 1,211 last year and a 3-year average of 1,213 pods
- Indiana soybean pod counts were 1,281 pods, up from 923 last year and a 3-year average of 1,135 pods.
FBN’s Take On What It Means: Yields on the tour were reported as variable, but continue to be above average over all. Soybean pod counts were also strong on these two legs of the tour. The forecast for drier weather of the coming week is a concern as the precipitation is needed for crops to reach their full potential as seen in the USDA forecasts. The tour will push into Iowa today and we can expect more reports on the extent of damage from the recent wind storm.
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