Midwest Storm Damage Widespread
- Monday's derecho storm caused damage across key corn-producing states including Iowa, Illinois, Wisconsin, and Indiana.
- Iowa’s Agriculture Secretary said the storm potentially impacted 10 million acres of Iowa farmland and millions of bushels of grain storage.
- Bin damage ahead of this fall's harvest could leave some farmers scrambling to find storage for their crops.
- Several private analysts have reduced their crop forecasts by 50 to 400 million bushels.
FBN’s Take On What It Means: It is extremely difficult to assess the extent of the damage from this weather event, and the wide range of estimates at this point provides a large target. It should be considered that the needed rains may have offset some of the loss from the sporadic winds. Next week’s crop condition report will be watched closely for further insight. FBN leans toward a lighter yield/production loss closer to the 50-million-bushel mark.
China Soybean Crush Higher
- Cofeed’s Chinese weekly soybean crush through August 7 slowed 1% from last week to just over 2 million tonnes, but was still up 23% from last year.
- Capacity utilization was estimated at 59%.
- Crushing is expected to remain over 2 million tonnes for at least the next few weeks as processors work through port stocks.
- Soybean port stocks dipped slightly to 6 million tonnes last week compared to 5.5 million last year.
- Cumulative 2019/20 soybean crush is up 3.6 million tonnes from last year to 75.9 million tonnes.
FBN’s Take On What It Means: Some processors are still experiencing a shortage of beans due to slow unloading of shipments while others are experiencing high meal stocks which is limiting crush rates. Strong domestic meal demand from both the poultry and pork sectors is expected to continue supporting the high crush pace. Chinese import projections could be raised again for both old and new crop in today’s USDA report which would help offset some of the higher production expected.
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